Indonesia's Garuda cancels Boeing 737 Max 8 order

IHWAN IDAMIN HARAHAP / AFP

Indonesia's national carrier Garuda is cancelling its order for 49 Boeing 737 Max 8 jets after two fatal crashes involving the plane.

It is thought to be the first formal cancellation for the model.

Garuda has already received one of the aircraft as part of a 50-plane order worth $4.9 billion (around AED 18 billion), made in 2014.

But it has now sent a letter to Boeing saying that it no longer wants to receive the remaining jets.

Aviation authorities around the world have grounded the 737 Max over safety concerns following the crash of an Ethiopian Airlines flight earlier this month.

Another crash took place last October involving a Lion Air flight that plunged into the Java Sea.

Boeing had earlier announced it is going to fit safety alert features to all of its 737 MAX 8 planes. 

The cockpit warning light, which can tell pilots about problems was not fitted on the planes involved in the recent crashes.

More from Business

Coming Up on Dubai Eye

  • The Business Breakfast

    6:00am - 11:00am

    The Business Breakfast is the day’s must listen for the UAE’s business leaders, and those who aspire to be.

  • Lunch with Lloyd

    11:00am - 2:00pm

    No one knows entertainment better than veteran Dubai broadcaster Mark Lloyd.

BUSINESS BREAKFAST LATEST

On Dubai Eye

  • Meet Gift, female food delivery driver

    Gift came here from Nigeria and failed to find a job, until a pizza company offered her one. She's now one of the very few female delivery drivers in the UAE.

  • FARMER'S KITCHEN

    Farmer's Kitchen is back for 2021!
    With our partners Spinneys, we are going to help you wave goodbye to boring dinners, cluttered fridges, and lumpy leftovers!