Brazilian carrier GOL Linhas Aéreas Inteligentes has entered an agreement with aerospace company Boeing over the 737 MAX aircraft.

The agreement includes cash compensation and changes to future orders and related payment schedules. 

It follows after the grounding of 737 MAX earlier last year by aviation regulatory agencies worldwide. 

The carrier saw seven of its 737 MAX aircraft being grounded while leaving 25 737 MAX aircraft undelivered. 

The company noted that the grounding order has severely affected GOL’s operations, advancement and fleet renewal plan.

GOL CEO Paulo Kakinoff said: “GOL remains fully committed to the 737 MAX as the core of its fleet and this agreement further enhances our successful long-term partnership with Boeing.”

As part of this agreement, Boeing will provide GOL with cash compensation and increased flexibility. The carrier can also make fleet requirement changes to balance supply with demand. 

The details of the agreement remain undisclosed, but it includes the termination of 34 orders, and slashing the existing firm orders for 737 MAX aircraft from 129 to 95. 

As one of Brazil’s largest networks, GOL offers more than 750 daily flights to over 100 destinations in Brazil, South America, the Caribbean and the US.

The carrier is one of Boeing’s largest customers for the 737 family and has received and operated more than 250 Boeing 737 aircraft. 

Last month, Air Canada scaled down an earlier Boeing 737 Max aircraft order.