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Garuda seeks to cancel Boeing 737 Max order

15 March 2019 01:09 PM  Company: PT. Garuda Indonesia (Persero) Tbk[GIAA]
Rp. 424  -8 (-1.85%)
Garuda seeks to cancel Boeing 737 Max order

JAKARTA - PT Garuda Indonesia (Persero) Tbk (GIAA) is seeking to cancel its order for 49 Boeing 737 Max 8 aircraft. The plan surfaced following the crash of Ethiopian Airlines Flight 302, which killed all 157 on board, last Sunday (10/3).

According to GIAA CEO Ari Askhara, the airline has lost confidence in the 737 Max. He added that Garuda has conveyed the option to Boeing.

“We have conveyed to Boeing the option to cancel our order for all 49 units, which have to be delivered by 2030,” Mr Askhara told CNN Indonesia, Thursday (14/3).

As a response to the Ethiopian Airlines crash, Indonesia is temporarily grounding all Boeing 737 Max aircraft in operation in the country. Currently there are 11 737 Max aircraft in operation in Indonesia—one operated by Garuda, and 10 by Lion Air.

The Ethiopian Airlines crash occurred only four months after the crash of Lion Air Flight 610 in October 2018. The accident, which killed 189, was the first to involve a Boeing 737 Max. (MS)

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PT. Garuda Indonesia (Persero) Tbk [GIAA]   Rp. 424   -8 (-1.85%)