Boeing appears to be steadily losing market share over the 737 MAX fiasco.
In a significant development, Saudi Arabia’s budget airline, Flyadeal stated, it has opted for a fleet of Airbus A320 jets rather than buy more Boeing 737 MAX aircraft.
Earlier Flyadeal had provisional order Boeing 737 MAX aircraft worth $5.9 billion.
Flyadeal took a second view on the deal following the two MAX aircraft crashes in Ethiopia and in Indonesia earlier, in March and October respectively.
The above two crashes killed 346 people and triggered a global grounding of Boeing’s 737 MAX aircraft and wiped billions off Boeing’s market value.
On Sunday, Flyadeal announced it would take delivery of 30 A320neos ordered by its parent, state-owned Saudi Arabian Airlines, at the Paris Air Show in June.
“This order will result in Flyadeal operating an all-Airbus A320 fleet in the future,” said Flyadeal.
Since its launch in September 2017, Flyadeal has operated leased A320 jets. It will now take delivery of new Airbus aircraft from 2021.
“We understand that Flyadeal will not finalize its commitment to the 737 MAX at this time given the airline’s schedule requirements,” said Boeing’s spokesperson.
In December 2018, Flyadeal had committed to provisionally order 30 Boeing 737 MAX jets over the A320neo.
According to Boeing that provisional order, which included additional purchasing options for 20 MAX jets, was worth $5.9 billion at list prices.