Garuda moves to cancel Boeing 737 Max 8 order

Garuda is seeking to cancel an order for almost 50 Boeing 737 Max 8 aircraft.

The Indonesian carrier would switch the $6 billion order to other Boeing models, chief financial officer Faud Rizal told Reuters in Jakarta.

Chief executive Ari Askhara said customers had lost trust in the 737 Max 8 following two crashes in less than six months and the subsequent grounding of the aircraft type.

Garuda is the first airline to publicly confirm plans to cancel an order after the second crash of an Ethiopian Airlines 737 Max 8, which killed 157 people last week.

Indonesian rival Lion Air has reportedly been reconsidering its orders since one of its 737 Max aircraft crashed in October killing 189 people.

Boeing said it was “unable to comment on customer discussions”.

The company hopes to have new software for the Max ready by the end of the month but it remains unclear how long the aircraft will remain grounded.

A preliminary report into the Ethiopian Airlines disaster is due to be issued by crash investigators by mid-April.

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