APD | Indonesia’s state airlines cancels order on Boeing 737 Max 8 planes

By APD writer Aditya Nugraha

AKARTA, Mar. 24 (APD) -- Indonesia’s state airlines of Garuda Indonesia has cancelled its order on Boeing 737 Max 8 plane from the United States-based plane maker Boeing due to “tarnished passenger’s trust on the plane”.

Garuda Indonesia President Director I Gusti Ngurah Askhara said the order cancellation covers the remaining 49 unit that are yet to get delivered to Indonesia. The airlines has received 1 Boeing 737 Max 8 from total order of 50 from Boeing.

“Even though Boeing has pledged a commitment to improve system planted in Boeing 737 Max 8, passengers have no longer trust the plane. So we asked to cancel our order on the 49 remaining planes,” he said here recently, adding that official letter regarding the order cancellation has been sent to Boeing.

The cancellation decision on the plane was tough for Garuda Indonesia as the airlines has long been loyal customer to Boeing, he added.

Another Indonesian airlines, Lion Air, opted to delay deliveries of Boeing 737 Max 8 it already ordered from Boeing after the crashes of its plane in October last year and followed by the same plane operated by Ethiopian Airlines in March 10.

Crash investigators have found similarities in the two crashes, led to suspicions on the plane’s newly-implanted Maneuvering Characteristics Augmentation System (MCAS) originally developed to prevent the plane from stalled condition during flights.

“We have discussed it with Boeing. Some deliveries should arrive in March to April, but will not accept them,” Lion Air Managing Director Daniel Putut Kuncoro Adi said. Lion Air operates 10 of the plane at present, excluding the one that crashed last year.

Lion Air has made record-breaking order on 380 Boeing 737 plane series worth around US$ 22 billion in November 2011. 200 of those orders were for Boeing 737 Max series.

As of March 14 Indonesian authorities suspended operation of Boeing 737 Max 8 in the nation airspace until further notice.

Indonesia has 11 Boeing 737 Max 8 operated by Garuda Indonesia and Lion Air at present. The two airlines have agreed to ground the planes until further notice.

(ASIA PACIFIC DAILY)