By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: American Airlines Seeks Boeing’s Help to Avoid MAX Cancellations
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > American Airlines Seeks Boeing’s Help to Avoid MAX Cancellations

American Airlines Seeks Boeing’s Help to Avoid MAX Cancellations

Travel Radar
Last updated: 11 July 2020 06:37
By Travel Radar Staff
3 Min Read
Share
Miami Airport, Florida
SHARE

American Airlines is the latest carrier that is contemplating cancelling some orders of the troubled 737 MAX. Wall Street Journal on 10 July, cited sources claiming that American has threatened to cancel around 17 orders after struggling to secure financing.

Now, American is reportedly working with Boeing to arrange the necessary funding to avoid cancellations of the previously speculated 17 orders. The report also clarifies that not 17 rather only a dozen cancellations may ‘potentially’ occur.

Flight Global cited an unnamed source that said:

American…is seeking Boeing’s help to secure financing at favourable rates, which have become more difficult to obtain amid the coronavirus downturn.

This latest revelation plays in favour of both Boeing and American Airlines. Boeing is obviously the major beneficiary. The US aerospace company sustained heavy hits this year as the coronavirus crisis accelerated the case of order cancellations from customers. The total number of MAX cancellations already form the majority of total aircraft cancellations this year.

737 MAX Fleet
© Tom Fox/The Dallas Morning News

While American will be relieved to receive at least some of the 76 deliveries currently pending. Air traffic levels — at this time of the year — in the US are nowhere near 2019 levels. But demand is rapidly growing as domestic carriers resume flights on more local and international routes.

Boeing Scrambling to Secure Financing

Right now Boeing is struggling to secure the necessary financing for resuming deliveries. According to Reuters, a drop in demand for its best selling twin-jet has dried up funds for smooth deliveries. With a backlog of around 4 000 orders, this is a sticky situation for Boeing. A senior aviation financier explains:

Nobody wants to take new aircraft and this is particularly true for the MAX right now.

Boeing’s current strategy — to heal its balance sheet — involves selling off the jets to lessors, which would then lease the aircraft to airlines. It may go as far as buying back the jets and leasing them to airlines itself.

Whatever the case, Boeing knows that it needs to subsidize the sale of new aircraft to airlines — as in the case of American — to avoid more cancellations. Its own financing body, Boeing Capital Corporation, might play a role in this process.

Boeing’s next-generation narrowbody airliner has been grounded for 15 months now. And there still remain many hurdles the 737 MAX has to overcome before it can take to the skies once again.

It is currently awaiting regulatory approval as flight testing began last week.

Do you think AA will cancel its some orders for the 737 MAX? Let us know in the comments!

You Might Also Like

Jet2 Cancels More Flights and Holidays with Newcastle Airport Affected
Qantas 747 Diverts due to Fuel Pump Error
Annual Airline Awards
Air Canada and Opération Enfant Soleil Launch Passeport de Rêve to Fund Pediatric Healthcare
Fuel System Problems for Vietjet A320
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Travel Radar
ByTravel Radar Staff
Follow:
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]
Previous Article Heathrow Terminal 2 COVID-19 Test Proposal for Arrivals at Heathrow Airport
Next Article Etihad Resumes Flights to India
Subscribe
Login
Notify of
guest
guest
0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

A VietJet Thailand aircraft in the sky with pictures of flight attendants on the plane body.
Vietjet Welcomes New Wide-body Aircraft, Expands Fleet to 121
Aircraft Airline Economics Airlines Aviation
BOEING website
FAA issues $3.1million fine against Boeing for safety violations between 2023-2024
Aircraft Airlines Aviation
Cathay congratulates the Belt and Road Summit on its 10th anniversary
10th Belt and Road Summit, Cathay Congratulates the Hong Kong Government
Airshow & Events Aviation Travel
IndiGo cargo
IndiGo expands its network to Purnea, its 94th domestic destination
Aviation Route Development
Lufthansa Technik's 100th LEAP engine Induction
Lufthansa Technik celebrates its 100th CFM LEAP engine induction
Aviation Manufacturing
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up