Boeing’s Max jet set to return just as customers head for exit

The unprecedented number of cancelled orders for Boeing’s 737 Max is driving an increase in jets parked at the company’s airfields that will need to be reconfigured before they are ready for a new buyer. Boeing logged 516 net cancellations for the 737 Max in 2019 and 2020 to the end of October. Rival Airbus registered 1,010 net orders for the A320 jet family during the same period. Among the Maxes parked at sites in Seattle and central Washington is an unknown but growing number of “white tails” — jets painted white because they are not promised to any airline. The pandemic has hit both aerospace manufacturers hard, as their customers reel from the collapse in demand for air travel. But Boeing is also losing orders from airlines and lessors who, still without a Max after 12 months, are cancelling their contracts without penalty. So far in 2020, Airbus A320 has 275 net orders, while Boeing’s 737 Max has 443 net cancellations. Another, stricter accounting measure paints an even worse picture for Boeing. The company has 1,020 net cancellations this year, if the figure counts not just voided contracts but also deals with customers which are so financially weak they may not take delivery. The high number of cancellations is noteworthy, said Canaccord Genuity analyst Ken Herbert. “I’m sure Boeing is pretty much doing anything that the airline would want to do to maintain the order,” he said. “It’s not as if Airbus is facing a similar situation with the A320. This is a Boeing-specific, versus a broader industry, phenomenon.” The US FAA next week is expected to lift the flight ban on the Max that has lasted 18 months. Story has more background.<br/>