Boeing's 737 Max problem puts society in turbulence; $ 600 billion in risk orders

In Russia, Utair Aviation is asking for guarantees before taking delivery of the first of 30 aircraft.

The Boeing Max order book, worth more than $ 600 billion, began to shake after several large customers threatened to reconsider their purchases following the crash of Ethiopian Airlines, the second fatal accident involving since October.

VietJet Aviation JSC, which doubled its order to about $ 25 billion just last month, announced that it would decide its plans for the future once the cause of the tragedy was discovered. Kenya Airways is currently reviewing Max's purchase proposals and could switch to the rival Airbus A320. In Russia, Utair Aviation is asking for guarantees before taking delivery of the first of 30 aircraft.

The Indonesian Lion Air has decided to give up a $ 22 billion order for the 737 in favor of the Airbus jet, according to one person familiar with the project. In addition, Garuda Indonesia plans to reduce orders for the Boeing aircraft and a $ 5.9 billion order from a Saudi Arabian Airlines unit is pending.

The 737, which entered service in the late 1960s, is the best-selling model in the aviation industry and Boeing's main source of revenue. The redesigned Max version has logged more than 5,000 orders worth more than $ 600 billion, including aircraft already delivered.

Boeing, whose shares have lost 11% of their value this week, faces a growing financial risk after two disasters involving its latest narrow-body jet over the last five months. The stock advanced 0.5% Wednesday in New York after experiencing its largest decline in two days in almost ten years.

The fatal crash in Ethiopia comes about five months after the October 29 crash of another Boeing 737 Max, operated by the Indonesian Lion Air.

The relationship between the carrier and Boeing deteriorated after the builder reported maintenance issues and human error at Lion as the underlying cause, even as the pilots of the aircraft were fighting a computerized system that had taken the lead. control as a result of a sensor malfunction.

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