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GECAS Cancels 69 Boeing 737 MAX Orders

Order cancellations of the Boeing 737 MAX have now reached 200 after GE Capital Aviation Services (GECAS) has terminated 69 orders of the said aircraft. The backlog of Boeing's highest selling aircraft down to 4,079 as of end of March which include 150 cancellations from aircraft lessor Avolon, and airlines Gol, Smartwings, and some undisclosed customers.

Photo credits: Wikimedia
In a media release announcing its order termination, GECAS said, "“GE Capital Aviation Services and the Boeing Company have mutually agreed to rebalance the lessor’s skyline order book for 737 Max."

“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 programme and our valuable, long-term partnership with Boeing,” the release said.

However, the aircraft lessor is holding on to its remaining orders of 82 737 MAX orders with 29 currently in its fleet. In a report by FlightGlobal, GECAS adds that not all aircraft in its order book are allocated and says it still holds purchase-and-leaseback agreements covering 15 737 Max. Under those deals lessors buy aircraft and immediately lease them to airlines.

​The present CoviD-19 pandemic has forced airlines to cut capacity significantly prompting many of them to also downsize. Many others are rethinking their future strategies.

In a statement about the GECAS cancellations, Boeing said, "In light of the COVID-19 pandemic, this adjustment helps to balance supply and demand with market realities, especially in the leasing channel."

“Since last year, where it has made sense, we have adjusted our production skyline to the fact that we are building fewer Max airplanes than planned," Boeing adds.

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