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Lion Air CEO says possible will cancel Boeing 737 MAX orders

Reuters  |  JAKARTA 

By Cindy Silviana

(Reuters) - Indonesia's is considering cancelling orders for 737 MAX jets following a crash that killed 189 people in October but has not yet made a decision, the airline's said on Thursday.

Sirait told a briefing that was examining the legality of cancelling orders but had not yet communicated with the manufacturer about the prospect.

The has 190 Boeing jets worth $22 billion at list prices waiting to be delivered, on top of 197 already taken, making it one of the largest U.S. export customers.

on Monday reported was reviewing Boeing airplane purchases and had not ruled out cancelling orders as relations worsen in a spat over responsibility for the crash, according to sources.

Any cancellation of orders would need to be approved by the airline's co-founders and co-owners, and his brother

ordered a review of purchases in response to Boeing's statement last week focusing attention on piloting and maintenance topics related to the crash, reported on Monday.

Boeing declined to comment on contractual matters but industry sources say companies rarely leave room for unilateral cancellations except in exceptional circumstances.

Bankers and some analysts say Lion Air and Southeast Asian rivals over-expanded and would be comfortable with fewer orders.

Lion Air, as a private company, does not publicly disclose information about its financial position.

has reported pressure from and a weaker currency.

(Reporting by in Jakarta, additional reporting by in Paris, writing by and Jamie Freed; editing by Jason Neely/Keith Weir)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 06 2018. 20:28 IST
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