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Garuda cancels $6 billion order for 49 Boeing 737 Max jets

boeing 737 max

Garuda said on Friday that it has requested a cancellation of its current order for 49 Boeing 737 Max jets, an order which is valued at $6 billion.

As said by Garuda spokesman Ikhsan Rosan, the airline sent a letter to Boeing on 14th March to request cancellation of the order. While the company has not heard back from Boeing, the aircraft manufacturer plans to visit Jakarta on March 28 for “further discussion” as informed by Rosan.

Garuda’s CFO said that the company may change it’s current order to another type of Boeing jet. The national carrier, however, did not give any explanations on why it no longer wanted the planes. It currently has only one 737 Max 8 in its fleet.

Nonetheless, this move does seem to be an influence of the two fatal crashes involving the 737 Max 8. The Indonesian airline has been the first to publicly confirm plans to cancel an order of the aircraft model. Authorities in multiple countries – including in the US, Europe and China – have grounded their 737 Max jets.

Last October, a 737 Max 8 operated by an Indonesian airline Lion Air crashed into the Java Sea killing all 186 people on board. Investigators suspect an issue in the flight control system as a contributing factor to the crash. Less than five months later from this incident, the same plane model operated by Ethiopian Airlines crashed again killing all people on board.

These incidents have reportedly sparked an investigation by the FBI into the certification process of the jets.