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Lost trust: Garuda and Lion Air snub 737 Max 8

Lost trust: Garuda and Lion Air snub 737 Max 8

Kristin Mariano

- March 26, 2019

Indonesia’s Garuda has told Boeing that it will cancel its multi-billion impending order for 49 737 Max 8 jets after the model was involved in two fatal crashes.

“We have sent a letter to Boeing requesting that the order be cancelled. The reason is that Garuda passengers in Indonesia have lost trust and no longer have the confidence” in the plane, he said, adding that the airline was awaiting a response from Boeing. Boeing officials will visit Indonesia next week to discuss Garuda’s plans to call off the order,” Garuda spokesman Ikhsan Rosan told AFP.

Garuda had received one 737 Max 8 as part of its 50-aircraft order worth USD 4.9 billion at list prices when it was announced in 2014. The Indonesian airline is also seeking the possibility of returning the aircraft.

The Indonesian carrier had so far has paid Boeing about USD 26 million. The company’s head told local media outlet Detik that it would consider switching to a new version of the single-aisle jet.

“In principle, it’s not that we want to replace Boeing, but maybe we will replace (these planes) with another model,” Garuda Indonesia director I Gusti Ngurah Askhara Danadiputra told Detik.

Lion Air operates a modern fleet of Airbus and Boeing aircraft
Lion Air operates a modern fleet of Airbus and Boeing aircraft

Meanwhile, low-cost carrier Lion Air said it was postponing delivery of four 737 Max 8 jets following the fatal accident of Ethiopian Airlines flight 302.

Lion Air is one of Boeing’s biggest customers. Lion Air operates 10 Max 8 jets, part of a then-record USD 22 billion order from Boeing made in 2011. The jets are on track for delivery this year.

Aviation analysts claim that this recent moves of Indonesian airlines could spark more cancellations from other major carriers. Moreover, Boeing is currently facing investigation and a Congress inquiry regarding the safety of 737 Max 8.

Boeing 737 Max 8 was the model involved in two fatal crashes that killed more than 300 people. However, initial findings have found “similarities” between the two accidents related to the anti-stall software of the aircraft. In both cases, allegedly the pilots battled with the craft software before the plane nose-dived.

Boeing is working on a software update, which it will complete in April, saying: “For the past several months and in the aftermath of Lion Air Flight 610, Boeing has been developing a flight control software enhancement for the 737 MAX, designed to make an already safe aircraft even safer.”

May we all strive to emulate her virtues and remember that true wealth lies in the depth of our character, the sincerity of our actions, and the impact we have on those around us.”

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Lost trust: Garuda and Lion Air snub 737 Max 8

Kristin Mariano

- March 26, 2019

No posts found.

May we all strive to emulate her virtues and remember that true wealth lies in the depth of our character, the sincerity of our actions, and the impact we have on those around us.”

Stay riveted for our next gala event, The Brand Travel Daily Media Travel Excellence Awards that recognizes and celebrates the outstanding achievements of companies and individuals in the travel, airline, and hospitality industry. They are scheduled to take place in 11 October, 2024

For inquires, to attend or sponsor next awards, kindly email here: Gary@traveldailymedia.com

If you know of any female leaders or up and coming superstars in the Travel and Hospitality industry you would like to nominate, please visit our page and complete a nomination form!
The prestigious IWTA Awards 2024 Award Winners are listed below:

content studio box

…there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you design and create an advertising campaign.

We can also organise a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

x Studio

Connect with your clients by working with our in-house brand studio, using our expertise and media reach to help you create and craft your message in video and podcast, native content and whitepapers, webinars and event formats