Published: Mon, July 15, 2019
Worldwide | By Lisa Hogan

Saudi carrier cancels troubled Boeing 737 order for Airbus

Saudi carrier cancels troubled Boeing 737 order for Airbus

Boeing still has more than 4,500 unfilled orders for the Max.

The change in leadership of the Max program was announced in a letter to employees from Kevin McAllister, chief of Boeing's commercial airplanes business.

Flyadeal, the budget airline run by Saudi Arabian Airlines, ordered 30 A320neo jets from Airbus and took options on 20 more.

Federal prosecutors aided by the FBI, the National Transportation Safety Board, the Transportation Department's inspector general, congressional panels and a number of independent committees are reviewing the 737 MAX's certification and broader certification questions.

With all the problems now facing Boeing at the moment, it's not surprising to hear that the world's largest airplane manufacturer is about to be dethroned.

It's become the first airline to officially cancel its order since the MAX grounding.

Boeing Co.'s (BA.N) second-quarter jet deliveries slid 54% from a year earlier to 90 aircraft, reflecting the toll from a global grounding of its best-selling 737 Max after two fatal crashes.

Deliveries of Boeing 737s, a work horse for short and medium-length flights, dropped to just 24 in the second quarter, down from 89 in the first quarter and 137 in the second quarter of 2018.

Boeing is poised to lose its place as the world's largest plane maker to Airbus.

While the three US airlines' MAX jets account for only a fraction of their entire fleet, the grounding has forced about 150 daily flight cancellations for Southwest and 115 for American.

The Saudi airline said it will switch to an all-Airbus fleet in the future.

While Boeing has reportedly fixed the software problem with the anti-stall system that caused the 737 Max air disasters, the planes remain grounded indefinitely. "They are trying to resolve it but there is no resolution in sight as of now", one of the sources mentioned above said.

Dozens of lawsuits have been filed by families of those aboard the downed planes, and last week Boeing said it will make an initial investment of $100 million over several years to help families and communities affected by the two crashes.

Boeing shares fell 0.4 percent to $349.64 in mid-morning trading.

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