3/22, 7:53 AM (Source: TeleTrader)
more TeleTrader news

Garuda to halt 737 Max 8 order, may replace model

Boeing Co.'s representatives will come to Jakarta before the end of the month for a meeting with Garuda Indonesia, the flagship airline said and expressed the intention to block a major transaction. It has informed the aerospace giant on March 14 of the possibility to cancel an order which was worth $4.9 billion at list prices when it was signed in 2014. The carrier cited two deadly crashes in the past five months as the reason for calling off the deal for 50 units of 737 Max 8.

One of the planes was already delivered and there was a $26 million payment so far, Garuda noted and asserted it is interested in switching to another version of the single-aisle aircraft. The 737 Max has been banned from flying around the world, including in the United States, Europe and the Southeast Asian country. Malaysian rival Lion Air recently said it is considering to scrap ongoing orders. It lost a plane in October and all 189 people on board died. Earlier this month, 157 persons aboard an Ethiopian Airlines' 737 Max 8 died in a crash.

Consumers lost confidence in the jet, the Indonesian company added. Boeing has contracts for the delivery of five thousand units of the type.

Breaking the News / IT