Boeing 737 to suffer losses as Garuda cancels its deal

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Indonesia’s national carrier Garuda has told Boeing it will cancel a multibillion-dollar order for 49 Boeing 737 MAX 8 jets. This decision is taken after two fatal crashes involving the plane. It is believed to be the first formal cancellation of the troubled model.

Moreover, Airline says it has ‘lost trust’ and no longer has ‘confidence’ in the model after two deadly crashes in five months. Boeing officials will visit Indonesia next week to discuss Garuda’s plans. Certainly, this visit will be to call off the order. Furthermore, Garuda already received one of the planes, Rosan said. This is as a part of a 50-aircraft order worth $4.9bn at list price. The deal was announced in 2014.

“We have sent a letter to Boeing requesting that the order is canceled,” Garuda spokesman Ikhsan Rosan said. Further, he added, “The reason is that Garuda passengers in Indonesia have lost trust. They no longer have the confidence” in the plane.” He also added that the airline was awaiting a response from Boeing.

Furthermore, The Boeing 737 MAX is a narrow-body aircraft series designed and produced by Boeing Commercial Airplanes. This is produced as the fourth generation of the Boeing 737. Moreover, this airplane succeeds the Boeing 737 Next Generation. The new 737 series was launched on August 30, 2011. It performed its first flight on January 29, 2016.

Moreover, The airline is also talking to Boeing about whether to return the plane it has received. “In principle, it’s not that we want to replace Boeing. But maybe we will replace with another model,” Garuda Indonesia director I Gusti Ngurah Askhara Danadiputra said.

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