Saudi airline cancels Boeing 737 Max order
A Saudi budget airline on Sunday announced an order for 30 Airbus planes, replacing the previous $6 billion deal it had with Boeing for its controversial 737 Max jets.
The Airbus planes will join the Flyadeal fleet in 2021, according to the airline.
Boeing had struck an agreement with Flyadeal in December 2018 for 30 737 Max jets with the option to purchase 20 more in a deal valued up to $5.9 billion at list price.
The company did not immediately respond to a request for comment on Flyadeal’s new contract with Airbus.
Boeing 737 Max jets have been grounded worldwide following two deadly crashes involving the aircraft.
The manufacturer has yet to receive regulatory approval on software fixes to address the issues involved in the fatal crashes in Ethiopia and Indonesia.
Boeing made its first Max 737 sale since the accidents during the Paris Air Show last month.
International Airlines Group (IAG), which owns Aer Lingus, British Airways, Iberia, Vueling and Level, will purchase 200 of the planes.
The company faces several lawsuits related to the crashes, which killed more than 340 people in the last year.
A spokesperson for Boeing told The Hill that they do not comment on customer discussions.
“Boeing is proud of its seven-decade long partnership with Saudi Arabia’s aviation industry and we wish the flyadeal team well as it builds out its operations,” they added in a statement. “Our team continues to focus on safely returning the 737 MAX to service and resuming deliveries of MAX airplanes.”
Updated at 11:51 a.m.