Budget Saudi Arabian carrier, Flyadeal, has said a decision on its Boeing 737 MAX order is imminent after the airline has been assessing whether to continue with the order after two fatal crashes or switch to another aircraft.
With 30 737 MAX 8s on order with options for 20 more, the potential $5.9 billion dollar deal would only be a dent in Boeing’s 737 backlog if lost, however would further damage passenger confidence and investor backing following media outbreak.
In an interview with Reuters, the CEO of Flyadeal, Con Korfiatis, said the following:
“We’ve kept an open position in terms of which way we’ll go on the fleet given the situation with the MAX. At the moment we still don’t have a decision but it is imminent.”
Since the deal is only a Memorandum of Understanding (MoU), if Flyadeal cancels, there will be little to almost no penalties as no contractual agreements have been defined.
Following the cancellation, Flyadeal has said it would order the Airbus A320neo, which is the direct competitor to the 737 MAX. This wouldn’t alter Flyadeal’s plans too much as they already operate a fleet of current engine option A320s, allowing for simplified training.
Despite the fact that Boeing has tested new software for the Maneuvering Characteristics Augmentation System (MCAS) that’s being held accountable, it takes a lot more to repair passenger confidence.
Do you think Flyadeal will cancel their MoU or do you think they’ll lock in a deal with Boeing?