[Published: Tuesday December 04 2018]
Lion Air 'ponders cancelling Boeing jets' in row over crash
JAKARTA 4 Dec (ANA) - Indonesia's Lion Air is reviewing plane purchases from Boeing Co and has not ruled out cancelling orders as relations worsen in a spat over who should take responsibility for a Boeing 737 plane crash that killed 189 people in late October.
Cofounder Rusdi Kirana is furious over what he regards as attempts by Boeing to deflect attention from recent design changes and blame Lion Air for the crash, while the airline faces scrutiny over its maintenance record and pilots' actions.
Kirana is examining the possibility of cancelling remaining orders of Boeing jets "from the next delivery", a source familiar with his thinking told the Reuters news agency.
Another source close to the airline told Reuters it was looking at cancelling orders.
No final decision has been made, but the discussion over the fate of $22bn of remaining orders highlights the stakes surrounding an investigation involving Boeing's fastest-ever selling jet, the 737 MAX, which entered service last year.
Lion Air has 190 Boeing jets worth $22bn at list prices waiting to be delivered, on top of 197 already taken, making it one of the largest United States export customers.
Any request to cancel could be designed to put pressure on Boeing and would likely trigger extensive negotiations. Many airlines defer orders, but industry sources say aerospace suppliers rarely allow much scope for unilateral cancellations.
Lion Air declined to comment. A Boeing spokesperson said: "We are taking every measure to fully understand all aspects of this accident, and are working closely with the investigating team and all regulatory authorities involved. We are also supporting our valued customer through this very tough time."(ANA)
FA/ANA/4 December 2018--------
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