GECAS has canceled 69 Boeing 737 MAX orders. The cancelation leaves the aircraft lessor with 29 delivered MAXs, in addition to 82 further 737 MAX orders.
Recently we’ve seen several Boeing 737 MAX order cancellations. These have been due to a combination of reasons. Firstly, the 737 MAX has now been grounded for over a year. In addition to this, the global aviation crisis has meant that many more aircraft are now grounded.
Now, airlines hardly want new aircraft when they’re not even flying the ones that they already have. For example, Lufthansa has sent its A340-600 fleet to the desert, with reports suggesting it could look to delay 777X deliveries in favor of freighters. The latest cancellation comes in at slightly fewer than a recent removal by Avolon.
69 MAXs canceled
GECAS is the aircraft leasing arm of General Electric. The aircraft leasing company has announced that it has canceled 69 Boeing 737 MAX orders “to rebalance the lessor’s skyline order book for 737 MAX aircraft.” The aircraft canceled represent 38% of the company’s total Boeing 737 MAX order.
GECAS will keep the 29 Boeing 737 MAXs that it has already received. It will also maintain 82 more 737 MAX orders. It isn’t clear in which proportion models of the MAX have been canceled.
In a press release, GECAS President and CEO Greg Conlon said, “Today’s agreement will help GECAS better align our available fleet with the needs of our global customer base. We remain fully committed to the 737 MAX program and our valuable, long-term partnership with Boeing.”
Meanwhile, a Boeing spokesperson told Simple Flying:
“We have come to an agreement with GECAS to restructure their MAX order book. In light of the COVID-19 pandemic, this adjustment helps to balance supply and demand with market realities, especially in the leasing channel… Disciplined adjustments provide us with greater flexibility to manage the 4,000 outstanding 737 orders and protect the value of the MAX in the marketplace.
They added: “We appreciate GECAS’ ongoing commitment to the 737 MAX program with more than 100 MAXs in their portfolio, including 82 unfilled orders. We look forward to delivering more MAX jets and helping them with their future fleet needs.”
Other canceled MAX orders
GECAS isn’t the only customer to have canceled orders for the Boeing 737 MAX. We recently reported that another leasing company, Avolon, had canceled orders for 75 Boeing 737 MAX aircraft. This accounted for half of the 737 MAX orders terminated in March. In February, 59 MAX orders had been canceled.
The Boeing 737 MAX has now been grounded for over a year. Despite cancelations from airlines such as Air Canada, some of the larger 737 MAX customers are committed to the program.
Indeed, Ryanair is expecting to introduce the type later this year. However, Ryanair CEO Michael O’Leary understands that the public may initially be apprehensive of the aircraft and will offer refunds so that passengers ‘don’t feel trapped on a MAX.’
What do you make of the GECAS order cancellation? Let us know your thoughts in the comments.