Airlines cautions to revoke some Boeing Max orders

Published:

On: Jul 2020

Reportedly, American Airlines is currently suggesting Boeing that it could revoke some of the overdue orders for the 737 Max unless the airlines maker helps to speed up new financing for the jets, which has become extremely expensive because the coronavirus epidemic has canceled airlines. American Airlines had 24 Max jets before they were grounded in 2019.  It has orders for almost 76 but seeks Boeing to help organize financing for 17 flights for which last financing will expire soon.

As per the report, if the firms can not reach a deal, airlines could utilize Max financing that is going to expire to raise fund for jets from Boeing archrival airbus. Boeing recently said in a statement that it is operating with customers during an unmatched period for out market as airlines encounter a huge drop in traffic, but did not comment on the discussions with American Airlines.

Based on the report issued by one of the sources said that the condition represents the massive facing airlines during the coronavirus outbreak. It has increased harder and more expensive for them to pay planes. The negotiating stance of the American does not reflect a loss of optimism in the security of planes.