Indonesian airline wants to cancel Boeing order after crash


In a blow for Boeing, Indonesia’s flag carrier is seeking the cancellation of a multibillion-dollar order for 49 of the manufacturer’s 737 Max 8 jets, citing a loss of confidence after two crashes within five months.

It is the first announcement of cancellation since Boeing’s new model aircraft were grounded following fatal crashes in Indonesia and Ethiopia.

PT Garuda Indonesia, which had ordered 50 Max 8 jets in 2014 and had received just one plane last year, sent a letter to Boeing last week requesting to cancel the order worth $4.9 billion, company spokesman Ikhsan Rosan said Friday. The carrier has so far paid Boeing about $26 million for the order. Read More

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