Breaking News 22-03-19
Breaking News 22-03-19
Breaking News 22-03-19
Friday that it's canceling a multibillion-dollar order for Boeing's 737 Max 8
passenger jet after the plane was involved in two deadly crashes in less than
five months.
"Our passengers have lost confidence to fly with the Max 8," Garuda
spokesperson Ikhsan Rosan told CNN.
The Indonesian carrier ordered 50 of the planes in 2014 for $4.9 billion. It has
taken delivery of one of them but has now sent a letter to Boeing (BA) saying
it no longer wants to receive the remaining jets on order, Ikhsan said.
It's the latest blow to Boeing over the 737 Max, its bestselling passenger jet.
The planes have been grounded worldwide over safety concerns following the
crash of an Ethiopian Airlines flight earlier this month.
Boeing representatives are planning to visit Jakarta on March 28 to discuss
the cancellation request with the airline, Ikhsan said.
A Boeing spokesperson said the company doesn't comment on "customer
discussions."
Aviation authorities around the world have grounded the 737 Max following
the Ethiopia crash. Many airlines have announced they won't fly the planes
until they know more about the circumstances surrounding the crash. The
grounding is expected to cost Boeing billions of dollars.
CNN reported earlier this week that US Justice Department prosecutors have
issued multiple subpoenas as part of an investigation into Boeing's
certification by the US Federal Aviation Administration and the company's
marketing of 737 Max planes.
The criminal investigation, which is in its early stages, began after the October
2018 crash of a 737 Max aircraft operated by Indonesia's Lion Air.
The 737 Max jets are by far the most important product for the company. It
has orders for nearly 5,000 of the jets, enough to keep production lines
operating for years to come.
Jethro Mullen and Sandi Sidhu contributed to this report.