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Travel Radar - Aviation News > News > More MAX Cancellations

More MAX Cancellations

Travel Radar
Last updated: 17 April 2020 09:08
By Travel Radar Staff
2 Min Read
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If like Boeing, you have a backlog of over 4 000 orders, to have 160 of them cancelled is a mixed blessing.

In March, the American manufacturer had 34 cancellations for the 737 MAX from the Brazilian GOL, leaving the South American operator with 95 outstanding orders, the Czech LCC Smartwings cancelled five and the Dublin-based lessor Avolon cut a huge 75 orders. The source of the remaining cancellations is unknown. Boeing has said that this leaves them with a backlog of 4 079 for the MAX and 5 079 in total. Airbus, of course, isn’t doing much better, recently announcing that it would reduce its rate of production of the A320, 330 and 350 by 30%.

Smartwings cancels five MAXs ǀ ©Flickr Commoms

Net cancellations for Boeing over the January-March quarter amounted to 307 according to CNBC. On a very slightly brighter note, they were able to deliver 50 commercial aircraft in the quarter, received 12 orders for the 787 from the Japanese carrier ANA and 18 for the P-8 maritime patrol aircraft, a derivative of the 737NG. The manufacturer is still dealing with new software problems in the MAX.

Boeing share price dropped 4.3% on the news but quickly reclaimed 7% to 145.83 on the London exchange.

As Australia ponders bailouts for its airlines, and Boeing sniffs at a US government support scheme, the major US airlines are now able to access a $25 billion bailout payroll pot. Alaskan, American, JetBlue, United, Delta and others will be able to get assistance which will be part grant, part loan at a ratio of 70/30. US cargo carriers are able to access $8 billion in grants and loans.

The assistance from governments across the world comes as IATA says passenger revenues are likely to fall by 55% compared to last years, and the US passenger volume is down 95% currently from 2019.

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