MIAMI – Evaluating its fleet and order book, GECAS has decided to cancel 69 orders of Boeing 737 MAX jets, parking the type in its current fleet due to the drop in its demand.
On its part, Boeing already announced that it reached an agreement with GECAS to restructure its MAX order book. However, the number of aircraft implied in the cancelation is not indicated in any of the statements.
Layoffs due to the Boeing 737 MAX demand drop
The decision enables the aircraft leasing subsidiary to adapt its available fleet with the needs of its customer base while it also maintains its full commitment to the 737 MAX program and partnership with Boeing, according to GECAS CEO, Greg Conlon.
Currently, the aviation arm of General Electric has 29 Boeing 737 MAX in its fleet and expects 82 further orders of the model, according to a Boeing spokesperson.
Low market for the Boeing 737 MAX
Even though the COVID-19 crisis continues to create a sense of uncertainty, the 737 MAX aircraft had several issues prior to the crisis that darkened its flying operations and, therefore, its orders by airlines and aircraft leasing companies.
Weeks ago, Avolon stopped its order of 75 Boeing 737 MAX aircraft arguing it was a cash flow preservation action.
This time with GECA, Boeing said that disciplined adjustments would provide them with greater flexibility to manage the 4,000 outstanding 737 MAX orders and protect the value of the type in the marketplace.