Indonesia's flag carrier is seeking the cancellation of a multibillion-dollar order for 49 of Boeing's 737 Max 8 jets. It is the first announcement of a cancellation since the planes were grounded following fatal crashes in Indonesia and Ethiopia.
A Boeing 737 Max on the tarmac outside the company's factory in Renton, Wash.
It is the first announcement of a cancellation since Boeing's new model aircraft were grounded following fatal crashes in Indonesia and Ethiopia.PT Garuda Indonesia, which had ordered 50 Max 8 jets in 2014 and received one plane last year, sent a letter to Boeing last week requesting to cancel the order worth $4.9 billion, company spokesman Ikhsan Rosan said Friday. The carrier has so far paid Boeing about $26 million for the order.
"Passengers always ask what type of plane they will fly as they have lost trust and confidence in the Max 8 jet," Rosan told the Associated Press,"This would harm our business." "We don't want to use Max jets ... but maybe will consider switching it with another Boeing model of plane," Rosan said. He said Indonesian passengers are afraid to take flights using any Max model, whether it's the 8, 9 or 10 series.
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