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Even though Boeing is close to re-certification of its troubled 737 MAX aircraft, the recent series of orders’ termination seems to continue further. This time aircraft leasing company Avolon has announced about the cancellation of commitments for 27 aircraft of the type.
This cancellations come in addition to 75 dropped bookings for the 737 MAX in the Q1 2020. The measures taken by Avolon are also aimed at adapting operations to the new market environment.
“Decisive measures to strengthen our capital position included the opportunistic buy back of US$639 million of our unsecured bonds at a discount to par, in so doing reducing our near-term debt maturities. More significantly, we have reduced our near-term commitments by over 140 aircraft since the start of the year,” said Dómhnal Slattery, CEO of Avolon.
Although Boeing has already completed certification flight test and is anticipating ungrounding of the type, the lengthy stop in 737 MAX services is having grave impacts on orders.