Business World

Boeing loses 737 Max aircraft orders from Saudi Arabia’s budget brand Flydeal

Boeing lost 30 orders for the Boeing 737 Max aircraft after a low-cost Saudi Arabian airline, Flydeal pulled out.

Their decision comes after the crashes of two 737 Max jets, the first in Indonesia in October followed by one in Ethiopia in March, which killed 346 people.

Boeing said that flyadeal had decided not go ahead with the provisional order because of “schedule requirements”.

The deal included an additional option to purchase 20 more 737 Max aircraft, was worth USD$ 5.9 billion at list prices, but the airline would have been offered a discount on that price tag.

Instead flyadeal, which is controlled by state-owned Saudi Arabian Airlines, will operate a fleet of Airbus A320 planes.

Since then the recent crash in March, Boeing’s 737 Max model aircrafts have been grounded worldwide. The company has been working to fix the technical faults to please regulators.

Crash investigators have concentrated their efforts on the aircraft’s control system and Boeing has been working with regulators to roll out a software upgrade.

There is no actual date as to when the aircraft might be cleared to fly again.

Last week Boeing announced that it would give USD$ 100 million to help families affected by the two crashes.

Source : Various