American Airlines Might Cancel Orders for 17 Boeing 737 Max Aircraft

By Paul Riegler on 12 July 2020
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American Airlines would cancel some of its orders for Boeing 737 Max aircraft if it is unable to obtain financing, multiple sources said.

In question are 17 of the beleaguered aircraft which have already been built.  Delivery is currently not slated until fall at the earliest as the Federal Aviation Administration would first have to recertify the aircraft and remove a grounding order.

American, the world’s largest carrier, has 24 of the aircraft in its fleet and orders for an additional 76.

To resolve the situation, Boeing’s captive financing arm, Boeing Capital, might be forced to purchase the aircraft and lease them to American.

The 737 Max was grounded in March 2019 following two crashes that resulted in the death of 346 people.

Lion Air Flight 610 crashed into the Java Sea on October 29, 2018, en route from Soekarno-Hatta International Airport in Jakarta to Depati Amir Airport in Pangkai Pinang.  The Boeing 737 Max 8 crashed 13 minutes after takeoff, killing all 189 passengers and crewmembers.

Ethiopian Airlines Flight 302, heading for Nairobi, crashed on March 18, 2019 just minutes after takeoff from Addis Ababa.

The worldwide fleet of 737 Max aircraft has been grounded for 15 months following the two incidents, which roiled the airline industry at the time.

Boeing has since developed a software fix for the plane’s MCAS, which repeatedly pushed down the noses of the two jets that crashed.

The Chicago-based aircraft maker has over 4,000 orders for the 737 Max worldwide, and 25% of the orders are from U.S. airlines.

(Photo: Accura Media Group)

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