Published on April 19th, 2020 | by Alan Dwyer0
GECAS cancels 69 Boeing 737MAX orders
In a statement on Friday (April 17th), Shannon based GECAS announced that it is to cancel 69 Boeing 737MAX aircraft from its order book. The leasing currently has 29 MAX aircraft delivered with another 82 still on order with Boeing. The aircraft canceled represent 38% of the company’s total Boeing 737 MAX order. Recently, some other airlines have cancelled orders and the fact that the aircraft remains grounded for over a year has seen a reduction in requirements for the aircraft. Added to this, the current COVID-19 crisis is going to reduce future air travels plans in the medium term with airlines currently reducing fleets and storing aircraft across the world.
Speaking when the agreement between and Boeing was announced, 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.”
A Boeing spokesperson commenting on the cancellation of the orders has said “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.We appreciate GECAS’s 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.”
GECAS is not the only orders that Boeing have lost on the 737MAX recently. Since the beginning of March, leasing companies AerCap (9), Avolon (75), and Japanese Investment Adviser (10) have all cancelled some of the planned MAX orders along with airlines such as Air Canada (11), Brazillian airline GOL (34) and Oman Air (10). Ryanair remain committed to the Boeing 737MAX-200 and expect to start taking the first of their order later this year and plan to have up to 55 in operation for the summer of 2021.