SEATTLE — One major Boeing customer says it's canceled an order for more than two dozen 737 Max jets, while two other international airlines announced plans to scale back their new aircraft budgets and deliveries.
The trio of moves, which emerged in different parts of the world, highlight fresh challenges to the jet maker's business going forward, even as it has moved to slash production and cut 16,000 employees from its workforce.
The deals involve three of Chicago-based Boeing's biggest global customers, including Avolon, the Irish-based aircraft leasing giant from Dublin, the German carrier Lufthansa and Indian airline Vistara, according to securities filings and public reports.
Avolon's move to cancel 27 737 Max jets was perhaps the most significant blow to Boeing, coming on the heels of its cancellation just months ago of another 75 737 Max jets, which have been grounded by safety regulators for more than a year after two crashes that killed 346 people.
Noting that his company had now reduced its near-term commitments by over 140 aircraft since Jan. 1, Avolon CEO Dómhnal Slattery added: "These actions provide us with the capital strength to manage through this market backdrop and to support our customers through the recovery.”
Boeing has not announced any new Max order cancellations recently after losing hundreds of orders over the past three months. Company spokesman Bernard Choi declined to comment on the Avolon CEO's statements.
Slattery disclosed the 737 Max order cancellation in his second quarter investor update, adding Avolon has also canceled an order for an Airbus A330neo widebody jet and deferred three A320neo family of single aisle aircraft from 2020-2021 to 2022.
Click here for the full story.
More from the Business Journal
- Ameren Missouri launches $500,000 COVID-19 relief fund for small businesses, nonprofits
- UMSL appoints first-ever vice chancellor for diversity, equity and inclusion
- ‘It hurts all of downtown’: With no baseball crowds, business owners navigate a lost summer
- Miriam launches $8M campaign to fund new high school
- SLU to require face masks this fall