Indonesian airline cancels Boeing 737 MAX order, American pilots to test software fix

(Reuters) – Indonesian airline Garuda plans to cancel a $6 billion order for Boeing 737 MAX jets because some passengers say they would be frightened to board the plane after two fatal crashes, although industry analysts said the deal had long been in doubt.

In the United States, American Airlines pilots prepared to test Boeing Co’s planned software upgrade for an anti-stall system on MAX simulators this weekend, saying they want their own safety guarantees on the fix.

The 737 MAX was Boeing’s fastest selling jet before an Ethiopian Airlines crash near Addis Ababa on March 10, five months after a Lion Air crash in Indonesia.

Garuda is the first airline to publicly announce plans to scrap an order since the world’s entire fleet of 737 MAX planes was grounded last week.

“Many passengers told us they were afraid to get on a MAX 8,” Garuda CEO Ari Askhara told Reuters on Friday.

However, the airline had been reconsidering its order for 49 of the narrowbody jets before the Ethiopian crash, including potentially swapping some for widebody Boeing models.

Southeast Asia faces a glut of narrowbody aircraft like the 737 MAX and rival Airbus A320neo at a time of slowing global economic growth and high fuel costs.

“They have been re-looking at their fleet plan anyway so this is an opportunity to make some changes that otherwise may be difficult to do,” CAPA Centre for Aviation Chief Analyst Brendan Sobie said.

Indonesia’s Lion Air has also said it might cancel 737 MAX aircraft, though industry sources say it is also struggling to absorb the number of planes on order.

Both crashes are still being investigated. But regulators have noted some similarities between the two, and attention has focused on whether pilots had the correct information about the “angle of attack” at which the wing slices through the air.

No direct link has been proven between the crashes, which killed a total of 346 people.

SOURCE REUTERS, Read more..