American Airlines has threatened to cancel some Boeing 737 MAX orders
American Airlines Group has threatened to cancel some of its orders for Boeing’s troubled 737 MAX jets, people familiar with the matter said, a sign of deepening financial stress in the aviation industry. The carrier has struggled to secure financing for 17 jets it had expected Boeing to deliver this year, some of these people said. American executives told their Boeing counterparts in recent weeks they didn’t have sufficient financing for some of their MAX orders and would have to cancel them unless Boeing helped secure funding for the jets, the people familiar with the matter said. Airlines and plane makers often posture during such negotiations, but the American-Boeing friction marks a twist in the 737 MAX saga. It was American whose push for a new fuel-efficient jet in 2011 helped spur Boeing to develop the MAX, an updated version of its decades-old 737 workhorse, rather than a new single-aisle aircraft. Boeing has been working to help line up financing for American’s MAXs, some of the people said. Under one possible scenario, they said, Boeing’s financing arm could purchase the aircraft and lease them to American, eventually selling the planes and the payment stream to leasing companies. A Boeing spokesman said the plane maker is focused on returning the MAX to commercial service. “It is an unprecedented time for our industry as airlines confront a steep drop in traffic,” he said. “We continue to work closely with our customers to support their operations, while balancing supply and demand with the realities of the market.”<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-07-13/oneworld/american-airlines-has-threatened-to-cancel-some-boeing-737-max-orders
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American Airlines has threatened to cancel some Boeing 737 MAX orders
American Airlines Group has threatened to cancel some of its orders for Boeing’s troubled 737 MAX jets, people familiar with the matter said, a sign of deepening financial stress in the aviation industry. The carrier has struggled to secure financing for 17 jets it had expected Boeing to deliver this year, some of these people said. American executives told their Boeing counterparts in recent weeks they didn’t have sufficient financing for some of their MAX orders and would have to cancel them unless Boeing helped secure funding for the jets, the people familiar with the matter said. Airlines and plane makers often posture during such negotiations, but the American-Boeing friction marks a twist in the 737 MAX saga. It was American whose push for a new fuel-efficient jet in 2011 helped spur Boeing to develop the MAX, an updated version of its decades-old 737 workhorse, rather than a new single-aisle aircraft. Boeing has been working to help line up financing for American’s MAXs, some of the people said. Under one possible scenario, they said, Boeing’s financing arm could purchase the aircraft and lease them to American, eventually selling the planes and the payment stream to leasing companies. A Boeing spokesman said the plane maker is focused on returning the MAX to commercial service. “It is an unprecedented time for our industry as airlines confront a steep drop in traffic,” he said. “We continue to work closely with our customers to support their operations, while balancing supply and demand with the realities of the market.”<br/>
