Indonesian Airline Moves To Cancel MAX Order
In the wake of the crash of an Ethiopian Airlines Boeing 737 MAX 8 on March 10, Indonesias Garuda Airlines has sent a letter to Boeing saying that it intends to cancel its order for 49 MAX 8s. According to the airline, the decision was made due to lack of customer confidence in the model.
Image: Boeing
In the wake of the crash of an Ethiopian Airlines Boeing 737 MAX 8 on March 10, Indonesia's Garuda Airlines has sent a letter to Boeing saying that it intends to cancel its order for 49 MAX 8s. According to the airline, the decision was made due to lack of customer confidence in the model. Garuda ordered 50 MAX 8s, valued at approximately $4.9 billion, in 2014 and has accepted delivery of one.
"Continuing the Max order does not benefit Garuda," airline spokesman Ikhsan Rosan told The New York Times. "Our passengers, psychologically, they don't trust flying with Max anymore. They often asked during booking what type of aircraft they would be flying on." Rosan also saidthat while signed purchase agreements can be difficult to get out of, Garuda will be discussing options with Boeing that include switching to a different aircraft model. Boeing is reportedly meeting with Garuda next week.
An estimated 4,000 Boeing MAXs are on order worldwide. Several larger carriers, including American, United and Southwest, have said they have no plans to change their MAX orders, but will instead wait for Boeing's promised software upgrade and training updates.
