Indonesia's Garuda asks Boeing to cancel $6-billion 737 MAX order; considers other jets of plane maker
Indonesian rival Lion Air has been reconsidering its orders since one of its 737 MAX jets crashed in October.
-
Garuda is the first airline to publicly confirm plans to cancel an order for the troubled jets
-
Indonesian rival Lion Air has been reconsidering its orders since one of its 737 MAX jets crashed in October
-
Garuda CEO Ari Askhara said that customers had lost trust in the Boeing 737 MAX 8
Jakarta: National carrier Garuda Indonesia has sent a letter to Boeing Co asking to cancel an order for 49 737 MAX 8 narrowbody jets, Garuda chief financial officer Fuad Rizal said on Friday.
The airline could switch the order, valued at $6 billion at list prices, to other Boeing models, Rizal told Reuters. He said negotiations with Boeing were ongoing and Airbus SE jets were not under consideration.
Garuda is the first airline to publicly confirm plans to cancel an order for the troubled jets after the second crash of a 737 MAX 8, which killed 157 people in Ethiopia last week.
Representational image. Reuters
Indonesian rival Lion Air has been reconsidering its orders since one of its 737 MAX jets crashed in October.
Garuda CEO Ari Askhara told Reuters on Friday that customers had lost trust in the 737 MAX 8.
The airline has only one in its fleet at present.
“They have been relooking at their fleet plan anyway so this is an opportunity to make some changes that otherwise may be difficult to do,” CAPA Centre for Aviation chief analyst Brendan Sobie said.
Askhara said last week it was possible it would cancel the order for 20 of the jets, with a final decision depending on what the U.S. Federal Aviation Administration does after the Ethiopian crash.
He told Reuters before the crash that the airline had decided to reduce the Boeing 737 MAX order from 49 by swapping some to widebody Boeing models.
Boeing declined to comment on customer discussions.
also read
Last Boeing 747 to be delivered: How ‘Queen of the Skies’ changed air travel forever
The final Boeing 747 freighter is slated to be delivered to Atlas Air on Tuesday. From its inception to nearly bankrupting the company, its glory years, and slow decline, a look back at the plane that transformed travel for ordinary people
What are the two Max jet crashes over which Boeing is to be arraigned in court?
The first crash occurred in October 2018 in Indonesia and was followed by another in March 2019 in Ethiopia
Miraculous Escape: Pilots walk away from Boeing 737 crash in Australia
The plane left a long scar in the scrub- and tree-covered landscape when it came down while battling a bushfire in the Fitzgerald National Park about 420 kms southeast of Perth