Published: Tue, July 09, 2019
Global Media | By Garry Long

Boeing loses big order for 737 Max aircraft

Boeing loses big order for 737 Max aircraft

Saudi budget carrier flyadeal has withdrawn a provisional order for Boeing's grounded 737 Max jets, the United States plane maker said Sunday (July 7), as the airline confirmed it will operate an entirely Airbus fleet.

"We perceive that flyadeal is not going to finalize its commitment to the 737 MAX right now given the airline's schedule requirements", a Boeing spokesperson mentioned.

Though the deal could have been worth up to $US6 billion for Boeing, the manufacturer had a backlog of over 4,000 Max 737 planes on order. Flyadeal could not immediately be reached for further comment. Together, the two orders are valued at roughly $10 billion, at list prices, though carriers are often offered substantial discounts. The cancellation itself is a small dent in Boeing's backlog for the bestselling 737, including the Max version.

Saudi Arabian airline flyadeal said on Sunday that it will fly an all-Airbus fleet, changing course from a plan to buy up to 50 of Boeing's embattled 737 Maxplanes.

The letter of intent was signed at the Paris Air Show.

Critics have blamed Boeing for rushing to build the 737 MAX aircraft and failing to fully disclose potential problems with the 737 MAX flight control software.

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At the time, airline CEO Con Korfiatis told Reuters, "We're in a hold for the moment".

Boeing disclosed in April that it has booked about $1 billion in charges related to fixing the plane.

Flyeadeal is a subsidiary of Saudi Arabian Airlines and flies to a range of domestic destinations across the kingdom.

Deliveries of the flyadeal aircraft are scheduled to begin in 2021, which will make the LCC an all-A320 operator. "Our team continues to focus on safely returning the 737 Max to service and resuming deliveries of Max airplanes". Lawyers for victims' families were dismissive of the move.

While the company's stock is still up more than 8% this year, shares have dropped more than 20% from their peak in early March, shortly before the second deadly accident involving a Max.

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