Boeing in Turbulence with $600 Billion in Orders Under Threat. Has Stock Bottomed?
It will be an interesting few months for Boeing. | Source: Shutterstock
In the wake of the second Boeing 737 Max 8 plane crash in Ethiopia on Sunday, the Chicago, Illinois-based aircraft maker’s stock has not only plummeted by over 10% but some of its customers are now reconsidering their orders for the narrow-body jet. So far over 5,000 orders worth more than $600 billion have been placed for the MAX narrow-body jets.
According to Bloomberg, airlines that are reviewing their orders for the Boeing 737 MAX are mostly in Asia. Indonesia’s largest airline by market share Lion Air has, however, gone a step further and suspended existing orders. Lion Air’s own 737 Max 8 plane crashed last year in October shortly after takeoff killing all 189 people on board.
Airbus Set to Benefit from Boeing’s Misfortunes
The Indonesian airline is now eyeing similar planes from Airbus SE’s narrow-body lineup and this includes the A321neo.
Lion Air said to mull pivot to Airbus after Boeing halt https://t.co/VzXPvBnIWt
— TheMalaysianReserve (@TMReserve) March 13, 2019
The relationship between aircraft manufacturer and Lion Air worsened following the October crash. This was after Boeing seemed to blame human error and maintenance for the accident. Late last year Lion Air revealed plans to cancel Boeing plane orders worth $22 billion.
Vietjet Ordered 100 units of Boeing 737 MAX a Fortnight Ago
In Vietnam, VietJet Aviation is reported to be awaiting more information on the Sunday crash before making a final decision. Last month during President Donald Trump’s visit to Vietnam, Vietjet inked an order for 100 Boeing 737 Max planes.