Sunday 7 July 2019 4:38 pm

Saudi airline scraps bumper 737 Max order in blow for Boeing

Low-cost Saudi Arabian airline Flyadeal has cancelled a $6bn (£4.8bn) order for 30 Boeing 737 Max jets in a major blow for the troubled aerospace giant.

Read more: Boeing 737 Max jet hits fresh setback before test flights

Flyadeal began to reconsider its provisional order for the grounded 737 Max jets following crashes in Indonesia and Ethiopia that killed a total of 346 people.

Boeing today said the budget airline had decided not to go through with its order due to “schedule requirements”.

The provisional commitment, which included an option to purchase an additional 20 737 Max jets, was worth $5.9bn at list prices.

Instead, Flyadeal will buy 30 Airbus A320 Neo aircraft, which were ordered by parent company Saudi Arabian Airlines during the Paris Air Show in June.

The order means the entirety of Flyadeal’s fleet will be Airbus A320 aircraft in the future, the company said.

The move comes during a torrid period for Boeing, which has lost billions in market value in the aftermath of the disasters.

Read more: British Airways owner signs up for 200 Boeing gets, including the grounded 737 Max model

The firm’s 737 Max jets will remain grounded until regulators have approved changes to the flight control system and a new pilot training scheme.