MAS must be firm in cancelling Boeing jet purchase
FocusM | 15 Mar 2019 00:30
The tragic crash of an Ethiopian Airlines flight using Boeing Co’s 737 MAX jet recently prompted a spiralling effect with many airlines grounding their similar model aircraft. Several countries, including Malaysia, have also halted flights that use the plane from flying over their airspace.
There is pressure on Malaysia Airlines to review its aircraft purchase agreement with Boeing Co two years ago. MAS had confirmed buying 25 of the 737 MAX jets from Boeing, on top of an option for another 25 aircraft, which the airline has yet to exercise. MAS also signed for eight 787- 9 Dreamliners worth some US$2.2 bil at list prices during former prime minister Datuk Seri Najib Razak’s official visit to Washington in 2017.
MAS should seriously consider cancelling the order. While the ailing national carrier has to weigh the cost implication on any cancellation, it is important to factor in the negative sentiments of passengers should it go ahead and take delivery of the jets. Its reputation has already been affected by the twin disasters of 2014.
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