Indonesia airline wants out of billion-dollar Boeing Max deal

In this April 28, 2017, file photo, Garuda Indonesia planes are parked on the apron at the Soekarno-Hatta International Airport in Tangerang, Indonesia. Indonesia's flag carrier is seeking the cancellation of a multibillion-dollar order for 49 Boeing 737 Max 8 jets, citing a loss of confidence in the model following two crashes in the space of a few months. (AP Photo/Dita Alangkara, File)

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March 22, 2019 - 7:33 am

JAKARTA, Indonesia — Indonesia’s flag carrier is seeking the cancellation of a multibillion dollar order for 49 Boeing 737 Max 8 jets, citing a loss of confidence after two crashes in the past six months.

It is the first announcement of a cancellation since Boeing’s new model aircraft were grounded following fatal crashes in Indonesia and Ethiopia.

PT Garuda Indonesia’s spokesman Ikhsan Rosan said Friday that the airline, which ordered 50 Max 8 jets in 2014 and so far has received just one, sent a letter to Boeing last week asking to cancel the order worth $4.9 billion.

He said the carrier made the decision out of fear its business would be damaged due to customer alarm over the crashes.

Rosan said Garuda plans to meet with Boeing representatives next week in Jakarta.

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