Garuda to cancel 49 Boeing MAX orders
Indonesia’s national carrier Garuda will cancel a multibillion-dollar order for 49 Boeing 737 MAX 8 jets after two fatal crashes of Lion Air and Ethiopian Airlines involving the plane, in what is believed to be the first formal cancellation of the troubled model.
“We have sent a letter to Boeing requesting that the order be cancelled,” Garuda spokesman Ikhsan Rosan said, adding that “the reason is that Garuda passengers in Indonesia have lost trust and no longer have the confidence in the plane.”
Boeing officials will visit Indonesia next week to discuss Garuda’s plans to call off the order.
Garuda already received one of the planes, Rosan said, as part of a 50-aircraft order worth $4.9 billion at list prices when it was announced in 2014. The airline is also talking to Boeing about whether to return the plane it has received, the spokesman said.
The move could spark more cancellations from other carriers, most of all Lion Air, which also has many 737 MAX 8 orders, aviation analysts said, as Boeing and US federal regulators get set to face their first public grilling by Congress since the deadly incidents.
Meanwhile, the US Federal Bureau of Investigation (FBI) has joined the US Department of Transportation in the criminal investigation around the Boeing crashes, alleging a flawed certification process.
Indonesia's national carrier Garuda will cancel a multibillion-dollar order for 49 Boeing 737 MAX 8 jets after two fatal crashes of Lion Air and Ethiopian Airlines involving the plane, in what is believed to be the first formal cancellation of the troubled model. “We have sent a letter to Boeing requesting that the order be cancelled,” Garuda spokesman Ikhsan Rosan said, adding that "the reason is that Garuda passengers in Indonesia have lost trust and no longer have the confidence in the plane.” Boeing officials will visit Indonesia next week to discuss Garuda's plans to call off the order. Garuda...
Indonesia’s national carrier Garuda will cancel a multibillion-dollar order for 49 Boeing 737 MAX 8 jets after two fatal crashes of Lion Air and Ethiopian Airlines involving the plane, in what is believed to be the first formal cancellation of the troubled model.
“We have sent a letter to Boeing requesting that the order be cancelled,” Garuda spokesman Ikhsan Rosan said, adding that “the reason is that Garuda passengers in Indonesia have lost trust and no longer have the confidence in the plane.”
Boeing officials will visit Indonesia next week to discuss Garuda’s plans to call off the order.
Garuda already received one of the planes, Rosan said, as part of a 50-aircraft order worth $4.9 billion at list prices when it was announced in 2014. The airline is also talking to Boeing about whether to return the plane it has received, the spokesman said.
The move could spark more cancellations from other carriers, most of all Lion Air, which also has many 737 MAX 8 orders, aviation analysts said, as Boeing and US federal regulators get set to face their first public grilling by Congress since the deadly incidents.
Meanwhile, the US Federal Bureau of Investigation (FBI) has joined the US Department of Transportation in the criminal investigation around the Boeing crashes, alleging a flawed certification process.
