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Boeing Makes Change, Indonesia Cancels Order

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Boeing Makes Change, Indonesia Cancels Order

Boeing Makes Change, Indonesia Cancels Order

JAKARTA/WASHINGTON (Reuters) - Indonesian airline Garuda said on Friday it would cancel a $6 billion order for Boeing 737 MAX jets, citing concerns over passenger confidence, as Boeing tried to quell safety worries by making a previously optional cockpit warning light compulsory.

National carrier Garuda is the first airline to publicly announce plans to scrap an order since a total of 346 people were killed in 737 MAX crashes in Indonesia and Ethiopia, leading the world’s entire fleet of the aircraft to be grounded.

Southeast Asia faces a glut of narrow-body aircraft like the 737 MAX and rival Airbus A320neo at a time of slowing global economic growth and high fuel costs.

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