This archive report was first published on 8 July 2019.
On July 8, 2019, Flyadeal, a low-cost Saudi Arabian airline, made a significant decision to cancel its order for 30 Boeing 737 Max aircraft.
The cancellation comes after two devastating crashes of 737 Max jets in Indonesia in October 2018 and in Ethiopia in March 2019, which resulted in the loss of 346 lives.
Since the crashes, the 737 Max has been grounded, and Boeing has been working on a software upgrade to satisfy regulators.
According to Boeing, Flyadeal decided not to proceed with the order due to 'schedule requirements', despite the deal being worth $5.9 billion at list prices.
However, it's worth noting that Flyadeal would have received a discount on the list price.
Instead, the airline will operate a fleet of Airbus A320 planes.
Boeing has been working on a fix for the 737 Max, but there is no clear timeline for when the aircraft will be cleared to fly again.
Recently, Boeing announced a $100 million payment to help families affected by the two crashes, which is independent of lawsuits filed in the wake of the disasters.
Lawyers for victims' families have dismissed the move.
Interestingly, IAG, the parent company of British Airways, Vueling, and Level, signed a letter of intent to buy 200 Boeing 737 Max aircraft last month, which was seen as a boost for Boeing.
