China’s financial leasing arm cancels orders for 29 Boeing 737 MAX jets

On Monday, adding to its string of recent cancellations, China Development Bank (CDB) Financial Leasing Co stated, it has agreed with Boeing, to cancel the purchase of 29 undelivered 737 MAX jets.

The 737 MAX has been grounded globally for more than a year following deadly crashes in Indonesia and Ethiopia.

“In light of evolving aviation market dynamics, we’ve been working together with Boeing over many months to re-calibrate our MAX orderbook to be in line with our long-term view of the market and related opportunities,” said Xuedong Wang, chairman of CDB Financial unit CDB Aviation, said in a statement.

In a statement Boeing said, it has retained an order for another 70 737 MAX jets that are yet to be delivered.

In March 2020, Boeing recorded a total of 150 MAX cancellations, including 75 from Avolon, an Irish leasing company.

Boeing continues to remain in talks with regulators and is seeking approval for getting the plane back into service. Demand however is seeing a sharp fall due to the coronavirus pandemic.

In a statement Boeing said, it continues to partner with leasing company customers to help them balance their portfolios in a challenging market.

“As we work to return the 737 MAX to service, our focus remains on addressing our customers’ fleet needs while optimising the delivery of the more than 4,000 airplanes in our 737 backlog,” said Boeing. “As market conditions normalise, Boeing anticipates that lessors who have restructured or reduced their orderbooks will continue to add MAX aircraft to their portfolios through sale leaseback agreements with airlines,” the planemaker said. “Longer term we expect these lessors will again place orders for direct MAX purchases.”

In a statement, CDB Financial Leasing said, all 737 MAX 10 jets continue to remain on order and will be switched to the smaller 737 MAX 8 model; 20 deliveries will be deferred to dates in 2024, 2025 and 2026.

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