GECAS Cancels Order for 69 Boeing 737 MAX Jets

General Electric Co's aircraft leasing subsidiary (GECAS) has canceled its order for 69 Boeing 737 MAX aircraft on Friday, after the lessor evaluated its order book recently.

GECAS Cancels Order for 69 Boeing 737 MAX Jets
GECAS has canceled 75 Boeing 737 MAX orders Photo: Boeing

The aircraft lessor has already taken delivery of 29 Boeing 737 MAX jets. The lessor still has 82 further 737 MAXs on order.

Recently, we have seen many Boeing 737 MAX cancellations along with deferrals of delivery date for other aircraft types too including Airbus A320s and other twin-jets as well.

GECAS has announced that it has canceled the orders for 69 Boeing 737 MAX to re-balance the lessor's skyline order book for 737 MAX aircraft. 

GECAS Cancels Order for 69 Boeing 737 MAX Jets
GECAS still has 82 unfilled orders for the 737 MAX Photo: Boeing

This cancellation represents 38% of the company's total order for Boeing 737 MAX aircraft. However, the lessor will keep the 29 MAXs, that has been delivered earlier.

Although the cancellation is confirmed, it is unclear in which proportion models of the MAX have been canceled.

In a statement, GECAS President and Chief Executive Greg Conlon said:

"Today's agreement will help GECAS better align our available fleet with the needs of our global customer base. We remain fully committed to the 737 MAX program and our valuable, long-term partnership with Boeing"

GECAS Cancels Order for 69 Boeing 737 MAX Jets
GECAS remains fully committed to the 737 MAX program Photo: GECAS

Meanwhile, a Boeing spokesman said:

"We have come to an agreement with GECAS to restructure their MAX order book. In light of the COVID-19 pandemic, this adjustment helps to balance supply and demand with market realities, especially in the leasing channel. Disciplined adjustments provide us with greater flexibility to manage the 4,000 outstanding 737 orders and protect the value of the MAX in the marketplace."

"We appreciate GECAS' ongoing commitment to the 737 MAX program with more than 100 MAX's in their portfolio, including 82 unfilled orders. We look forward to delivering more MAX jets and helping them with their future fleet needs," the spokesman added.

This cancellation comes days after Boeing reported a total of 150 737 MAX cancellations in March, including 75 cancellations reported from Iris leasing company Avolon. 

The remaining 75 cancellations in March were from Brazilians buyer GOL. Similarly, Boeing has posted a total of 59 737 MAX cancellations.

Avolon Boeing 737 Max
Avolon cancelled its order for 75 Boeing 737 MAX Photo: Avolon

Last week, Avolon cancelled its order for 79 aircraft and delayed delivery of another 25 aircraft. Along with this, the lessor has also cancelled order for four Airbus A330neo aircraft and also deferred delivery dates for other 25 narrowbody aircraft including some Max aircraft to 2024 and beyond.

Due to ongoing travel restrictions and decrease in demand for air travel, Airbus and Boeing will be forced to cut production by around 40% through 2021, citing airlines current condition.

The Boeing 737 MAX has now been grounded for over a year, after two deadly crashes killing a total of 346 people on-board.

When do you think aviation will return to its previous situation? Feel free to say in the comments below: