Aviation

Boeing: Airline will not proceed with $6 billion 737 MAX order

Christian Fleetwood

Christian Fleetwood

A Saudi Arabian airline will not proceed with its $5.9 billion 737 MAX order – instead opting for the competitor.

Reuters reported Sunday that budget airline flyadeal, a Saudi low-cost airline based in Jeddah, will not proceed with its order of 30 Boeing 737 MAX aircraft.

The deal included additional purchasing options for 20 737 MAX jets; however, it has been reported that the airline will instead opt for a fleet of Airbus A320s.

A Boeing spokesperson told Reuters that it was understood flyadeal would not finalise its commitment to the 737 MAX “at this time” due to the airline’s schedule requirements.

The airline has reportedly been considering its options since two fatal crashes involving the jet, which resulted in the combined deaths of 346 people – triggering a global grounding of the jet a huge financial loss on Boeing, reportedly in the billions of dollars.

Flyadeal revealed the allocation of the new aircraft followed from an agreement signed by is parent company, Saudi Arabian Airlines Corporation (SAUDIA), during the Paris Air Show in June this year.

Aircraft deliveries will commence in 2021.

“This order will result in flyadeal operating an all-Airbus A320 fleet in the future,” the airline said in a statement, adding that the agreement was for 100 aircraft.

The announcement that flyadeal will not be proceeding with its 737 MAX comes months after Virgin Australia announced the restructuring of its 737 MAX order to receive aircraft in 2021 instead of 2019.

In separate news, Boeing has announced it will pledge more than a hundred million dollars in support of families and communities affected by both the Lion Air and Ethiopian Airlines 737 MAX crashes.

The manufacturer is currently working with the Federal Aviation Administration (FAA) to return its 737 MAX to service. The FAA recently revealed it was not operating under a strict timeline. Boeing has said that once the aircraft does return to the skies, it will be among the safest aircraft ever to fly.

The Boeing Company chairman, president and CEO Dennis Muilenburg has publicly apologised on behalf of the manufacturer, and has repeatedly stated that it is taking “a comprehensive, disciplined approach” to ensuring that the update to the implicated MCAS is done properly.

Boeing is also facing multiple legal cases, including a class action lawsuit by more than 400 pilots over what they allege is the manufacturer’s “unprecedented cover-up” of known 737 MAX design flaws.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Tourism

Federal govt announces “most significant” insolvency reforms in 30 years to help save struggling small businesses

Is your business on its last legs? Find some relief in this major announcement by the federal government.

Share

CommentComments

Hotels

Crystalbrook to take over boutique Brisbane hotel

The independent hospitality company has gone all arty-farty in expanding its east coast footprint.

Share

CommentComments

Cruise

WATCH: Dream Cruises produces delightfully cringeworthy safety video

Dream Cruises has taken a leaf out of the airline playbook by turning its safety instructions into a fun video. It’s overly cheesy, but kinda cute.

Share

CommentComments

Travel Agents

MTA agent wins coveted spot on Dutch famil

With the famil stopping in Amsterdam along the way, you’d hope this agent will remember to pack some extra-clear eye drops and plenty of snacks.

Share

CommentComments

Wholesalers

Collette releases 2021/22 travel guide with seven new tours

Tell your clients to get ready to gorge themselves on arancini and caponata because three of the seven new trips involve the jewel of the Italian south: Sicily!

Share

CommentComments

Aviation

Qantas scraps Wallabies sponsorship, makes nearly $1m selling fully-stocked bar carts

We’ve mixed the good news with the bad here in this Qantas story, so get ready to smile and frown.

Share

CommentComments

Hotels

Hotel Wrap: Crowne Plazas ready to return, W Brisbane’s Extreme WOW Suite + MORE

This week’s Hotel Wrap is so huge that we’ve nicknamed it ‘Goliath’. However, that’s not to suggest you should start slingshotting stones at it if your name is David.

Share

CommentComments

Cruise

Norwegian co-founder and cruise titan Knut Kloster dies

Kloster was not only a titan of the cruise industry, but also a humanitarian and environmentalist.

Share

CommentComments

Travel Agents

Flight Centre fills Infinity Holidays void, opening up The Travel Junction to all agents

As part of its plan to streamline its product support areas, Flight Centre will use TTJ to service Infinity’s old clients, plus some cheeky new ones.

Share

CommentComments

Aviation

Qantas workers likely to receive thousands in unpaid wages after airline loses JobKeeper court case

The Flying Kangaroo’s cost-saving targets just became a little harder to hit after this court decision.

Share

CommentComments

Destinations

These are the world’s most complained about attractions

All up, people have spent more than 17 days complaining about the landmark that made the top of this list. That’s a lot of negative Nancies.

Share

CommentComments

Wholesalers

TTC commits to new sustainability goals, plans to be carbon-neutral by 2030

Meanwhile, we’re reducing our carbon footprint by strapping a tiny solar panel to our office dog. We’re not sure what’s it’s powering, but he looks very cute.

Share

CommentComments