![]() With last year's deliveries below target and doubts rising over 2023, planemakers are once again invoking the "excusable delay" clause, buyers said. Only the grounding of the Boeing 737 MAX over design defects was treated as a non-excusable delay on a significant scale, resulting in hefty compensation payments from Boeing, industry sources said. Non-excusable delays include anything that falls outside this catalog, but are rare, experts say. They may give the manufacturer a get-out in the event of a failure to obtain parts. ![]() With January already marked by fresh delay notices being sent to airlines and leasing companies, experts said millions of dollars of exposure are riding on one word: "excusable".Īircraft contracts contain dense descriptions of adverse factors which excuse manufacturers for multiple types of delay, meaning they can avoid paying penalties or "liquidated damages".Įxcusable delays include "acts of God", natural disasters, fire, flood, earthquakes and epidemics, among other examples, according to extracts of past contracts filed with regulators. The public exchanges reflect the battle lines in negotiations behind the scenes over whether manufacturers should bear contractual responsibility by paying penalties, even when suppliers are at fault, people involved in the discussions said. Powerful leasing companies heaped pressure on planemakers over the delays, with Air Lease Executive Chairman Steven Udvar-Hazy telling this week's Airline Economics conference that manufacturers had "grossly misjudged" their output.Īirbus and Boeing defended their record, saying the situation is the result of a mix of factors, from the pandemic to weak supply chains, and a sudden snapback in travel demand. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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