Boeing MAX: If the planes are grounded for a year, aerospace analysts believe customers can cancel contracts with little or no penalty,
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July 29, 2019 - by Scott Hamilton for leehamnews.com
Despite threats and fears of cancellations for the Boeing 737 MAX following two fatal accidents of virtually brand new -8 MAXes, few order cancellations directly attributable to the crashes have occurred.
So far, there isn't a discernible shift to Airbus, either, data shows.
Garuda Indonesia Airlines officials said after the Lion Air and Ethiopian Airlines crashes that it would cancel an order for nearly 49 MAX 8s. Although news emerged that the airline was swapping 8 MAXes for 10 MAXes and Boeing 787s, the OEM's website (as of June 30) still shows the 49 airplanes ordered by the carrier.
Boeing's website does show a loss of 85 orders due to "contractual changes," 49 orders lost net of cancellations and conversions and another 131 subtracted for ASC 606 accounting rules
Effect still to come?
The underlying question remains, however: will Boeing begin to lose market share for its most profitable airliner?
Cancelling orders can...
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