The national carrier of Indonesia, Garuda has informed Boeing that it has decided to cancel a multi-billion dollar order for 49 Boeing 737 MAX 8 jets after the deadly crashes of the proposed models currently.
The crucial move could instigate more cancellations from other carriers, as per the claim of the aviation analyst, as Boeing and the federal regulators have to confront the intense interrogation publicly by Congress since the terrible crashes.
Garuda representative, Ikhsan Rosan told, “ We have sent a letter to Boeing requesting that the order is canceled”.
He said, “ The reason is that Garuda passengers in Indonesia have lost trust and no longer have the confidence”, including that the airline was expecting a logical response from Boeing. The officials of Boeing will visit Indonesia next week, for discussing the plans of Garuda to dismiss the order.
Garuda has already received one of the planes, which is the part of 50- aircraft order worth $4.9 billion at list prices while it was declared in 2014, told by representative Ikshan Rosan.
Garuda is also discussing to Boeing about whether or not to return the flight it has in its fleet, told the representative.
The Indonesian carrier already paid almost $26 million to Boeing, while the leader of the company told local media outlet Detik that it would ponder shifting to a new version of the single-aisle jet.
Indonesia director Garuda I Gusti Ngurah Askhara Danadiputra told Detik, “ In principle, it’s not that we want to replace Boeing, but maybe we will replace (these planes) with another model”.
A Boeing representative told in Singapore, “ We do not comment on customer discussions”.
The Director of the Malaysia-based aviation consultancy Endau Analytics, Shukor Yusof told the declaration of Garuda surfaced to remark the first formal plans by a carrier to dismiss an order for the 737 MAX 8.
He told, it “ will probably not be the last. There is a risk that Garuda’s rival Lion Air, which also has many 737 MAX 8 orders, might make the same decision”.