Insight: Wednesday 31 July 2019 – China Southern Cancels MAX Order?

News

China Southern Airlines, the world’s third largest carrier, may have now publicly disclosed that it has cancelled its order for up to 64 Boeing 737 MAX aircraft.  The carrier currently has 26 of the grounded aircraft in its fleet.  Boeing reports 50 firm orders for the aircraft, so there are likely 24 firm and 40 options being cancelled.

China Southern may have now joined Lion Air and Ethiopian in cancelling future orders for the MAX.  The cancellation of 64 aircraft, plus a likely substantial follow-on order, is a vote of no confidence in the MAX and its reputation.  If China Southern has cancelled, the question becomes which other Chinese airlines might also cancel the MAX?