88 Boeing 737 MAX Orders Were Canceled In November

Boeing has just updated its order book to reflect activity over the November period. After cancellations, and conversions, and adjustments for orders that look unlikely to get filled, the Seattle-based planemaker lost a net total of 28 orders in November. The troubled Boeing 737 MAX program suffered a total of 88 cancelations. If you bring an order for 25 Boeing 737 MAX 10s into the equation, there was a net total of 63 Boeing 737 MAX orders canceled in November.

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Boeing’s 737 MAX program saw cancelations across November. Photo: Boeing

As Simple Flying reported on Tuesday, Virgin Australia canceled an order for 48 Boeing 737 MAXs in November. But in lieu, the airline also placed a fresh order. Gone was an order for 38 Boeing 737 MAX 8s and ten 737 MAX 10s. In its place is a new order for 25 Boeing 737 MAX 10s with delivery due to start in mid-2023. This transaction represents a net loss to Boeing of 23 MAX orders.

Air Lease Corp cuts further into its MAX orders

Los Angeles-based aircraft lessor Air Lease Corporation also canceled an order for 13 MAXs. Air Lease Corporation is a big customer at Boeing, and it still has 113 Boeing 737 MAXS on order. Air Lease Corporation is a big customer at Boeing. However, throughout this year, it has continually tinkered with its 737 MAX orders, according to customer need. In a Q3 conference call in November, Air Lease Corporation CEO, John Plueger said;

“For those MAX aircraft we have canceled, each has been made on a case-by-case basis
after discussion with the airline and are in line with our contractual rights to do so.”

In their October quarterly report filings with the SEC, Air Lease Corporation made further comments about the 737 MAX;

“Boeing’s ability to deliver 737 MAX aircraft may be impacted as a result of the COVID-19 pandemic. The Company is currently in discussions with Boeing regarding the mitigation of possible damages resulting from the grounding of, and the delivery delays associated with the 737 MAX aircraft that the Company owns or has on order, which could result in changes to the commitment table.”

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Air Lease Corporations still has 113 MAXs on order at Boeing. Photo: Boeing

Second time in 2020 Air Canada trims 737 MAX order

Another airline that trimmed its MAX orders last month was Air Canada. It was the second time this year Air Canada has taken the ax to its longstanding 737 MAX order. That US$6.5 billion order dated back to 2014. At the time, Air Canada ordered 33 737 MAX 8s and 28 737 MAX 9s. There were also 18 options and 30 rights to purchase additional 737 MAXs.

“Our narrowbody fleet renewal program with the 737 MAX is expected to yield significant cost savings and is a key element of our ongoing cost transformation program,” said Calin Rovinescu, President and CEO of Air Canada when the order was placed.

The Montreal-based airline took delivery of 24 MAX 8s before the MAX was grounded. Earlier this year, Air Canada trimmed 11 aircraft from the remaining order. In November, a further ten MAXs were cut from the order. That leaves 16 MAXs to be delivered. It is believed 12 of those 16 planes have already been manufactured.

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Air Canada already has 24 Boeing 737 MAX 8s. Photo: Getty Images

Not all bad news for the 737 MAX program

Boeing does not name the customers who canceled the remaining 17 Boeing 737 MAXs that dropped off the order book over November. However, it’s not all bad news for the MAX. The plane was recently recertified to fly in the United States. In addition, Ireland’s Ryanair placed a blockbuster order for 75 MAX 8 planes, increasing its order book at Boeing to 210 jets. But the Ryanair order came too late to influence the November figures.

As noted, across the entire Boeing organization, the aircraft manufacturer lost a net total of 28 orders in November after cancellations, and conversions, and adjustments. Only seven commercial planes were delivered in November, and just one of those was a regular passenger plane.

What do you think? Will the rate of MAX cancelations at Boeing drop now the plane is getting back in the air? Post a comment and let us know.


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