DUBLIN/SINGAPORE/MONTREAL - The grounding of Boeing’s global 737 MAX fleet has brought headaches for airlines that need to find alternative aircraft to fly in their place, but it has given some carriers a welcome opportunity to re-evaluate orders for the plane.
For airlines that over-ordered the latest version of Boeing’s 737 workhorse, the grounding could be a good excuse to delay or cancel purchases, saving cash on the balance sheet, analysts said. Southwest Airlines Co, the world’s largest operator of the MAX, was planning to fly the jet on its new California-Hawaii route later this year, while Gol Linhas Aereas Inteligentes inaugurated flights from Brazil to Orlando and Miami in November after receiving its first 737 MAX planes.
VietJet said it was closely monitoring developments and would make a decision about its order once more is known.Among other Asian airlines, financially troubled Malaysia Airlines said on Friday that its order for 25 737 MAX jets was under review. Garuda Indonesia said this week it might cancel its order for 20 737 MAXs, which it had already reduced from 49 before the crash.
Loss-making Norwegian already said in February it was postponing delivery of 12 MAX aircraft from 2020 to 2023 and 2024 to cut expenditure and shift its focus from expansion to profitability, and this week became the first major airline to publicly say it will seek compensation from Boeing over the MAX grounding.
“This is going to impact on their operations and cash flow,” he said. “Particularly into the Easter peak season next month and potentially through the summer as well... People will be scrambling for spare aircraft and there are not many, so lease rates will rise.”
This is what happens when BOEING runs the FAA | Daniel Elwell Elaine Chou FAASafetyBrief FAANews USDOT
or catch a glimpse of authorized rhetoric for the pundit scheme. She isn't hosting a tournament or anything. They shouldn't leave with a bag under their anything. It's illegal to do that.
The Max 8 and 9 may become the DC 10 of this era - planes the public doesn’t want.
Maybe try waiting for the investigations to finish before freaking out. I flew on 737s twice in the last year, SouthWest & AmericanAirlines, both fliights were fine. Millions have flown on 737s w/ no problems. All planes can crash, most don't.
Watching this like
Time for Trump to declare Boeing failure national security emergency & send billions to Boeing! Imagine job losses if Boeing fails?
Are we talking about taking delivery of the planes? Ordered but not yet delivered?