Airlines rethink $57bn in Boeing orders after crashes
Boeing is in crisis as airlines around the world ground the plane, with regulators from Australia to Europe denying it access to their airspace
Dubai — The Boeing 737 MAX 8crash in Ethiopia looks increasingly likely to hit the plane maker’s order book as mounting safety concerns prompt airlines to reconsider purchases worth about $57bn. VietJet Aviation, which doubled its order to 200 of the aircraft priced at about $25bn only last month, said it will decide on its future plans once the cause of the tragedy has been found, while Kenya Airways is reviewing proposals to buy the MAX and could switch to Airbus’s rival A320; and Russia’s Utair Aviation is seeking guarantees before taking delivery of the first of 30 planes with a $3.65bn value before customary discounts. That’s as Indonesia’s Lion Air firms up moves to drop a $22bn order for the 737 in favor of the Airbus jet, according to a person with knowledge of the plan. Separately, a $5.9bn Flyadeal order hangs in the balance. Boeing, whose shares have lost 12% of their value this week, faces escalating financial risk after two disasters involving its newest, narrow-body je...
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