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Air Canada cancels 11 737 Max orders

Air Canada says it has cancelled orders for 11 Boeing 737 Max aircraft as it reassess its needs in the wake of the troubled aircraft’s year-long grounding. ( More...

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lecompte2 5
They also cancelled options for the 787
DGR Rathborne 4
I had read , from a CNN article , that once Boeing misses the delivery date of an AirLines order , by one year , the Airline can cancel that aircraft order , with-out financial penalty . Now that the Boeing has made aircraft for delivery , but haven't been able to deliver them since the Grounding on March 13th, 2019 , other airlines that have similar agreements may start to routinely cancel their orders as well . I would be interested to see how this shakes out .........Penny for your thoughts on this ........DGR
ATCguy1 16
Good, hopefully more cancel. This is what happens when you make shareholders more of a priority than safety of the aircraft. Shame on you, Boeing.
Such a sad story. Putting shareholders ahead of safety was a huge blunder that Boeing will never recover from. Too bad as Boeing used to be known for good aircraft.
n9341c 0
I might be missing something in the whole "Boeing put shareholders first, so people die" logic. Does putting shareholders first automatically mean safety corners are cut? Safety is a component of the financial value of a company - a BIG one, especially with an aircraft manufacturer. Every publicly held company operates to maximize shareholder value. Cutting corners on safety will harm shareholder value. Boeing did not put shareholders ahead of safety because the two factors are interchangeably linked. Do you really not understand this, or is the "shareholder ahead of safety" sloganeering just too easy to spout versus actually thinking about how this all works?
Jamoo 3
I'm sure that Boeing did a risk assessment before making the decisions they made regarding the 737 Max. The problem with risk assessments is that they are usually used to backup a management decision. I know this because I have managed risk assessments and been a team member on a number of risk assessments. One might be surprised to know that the people on the risk assessment team often have no experience in what they are assessing. I have seen this happen because management did not want to pay the extra cost to bring in experts. The other thing about risk assessments is that the level and severity of risk is a random number pulled out of thin air by members of the team. That's not easy for those who are not experts. The severity might be high, but the deciding factor in a risk assessment is often the very slim chance that the severe results will actually take place. It was not only Boeing that did a risk assessment; but the FAA and Transport Canada would have also done risk assessments before delegating the authority to Boeing to make the decisions they made with the 737 Max. The FAA and Transport Canada delegated this authority to save money. Inspectors are experts in their field and don't come cheap. Boeing said that the pilots did not need additional training because they wanted to sell airplanes and make more money. They also made other numerous bad decisions with this aircraft. The bottom line is that about 350 people lost their lives because the FAA, Transport Canada, and Boeing put money ahead of safety. They gambled and about 350 people lost their lives.
ATCguy1 1
Safety and company/shareholder value are both important aspects to running a successful business, and I would agree that there is a direct relationship between the two. However, there were several instances during the 737Max's life, from RTDE to airline operation, that raised red flags. Each time, Boeing had a choice between keeping a positive safety/shareholder balance, or taking a short cut to maximize profits. As most of us have seen and read, Boeing chose the latter. The end result caused hundreds of lives and grounding of the aircraft.
N9341c...I do understand this, unfortunately all too well. From Wall Street to the left seat, I'm well seasoned in both. While you're welcome to your opinion, your snarky comments have no use here.
stefanoaz 1
The thing you're missing in that logic is the timeframe. If compensation is stock based and you are always looking at the next business quarter, you aren't prioritizing long-term shareholder value. And history bears this out - look at the parachutes that failed CEOs take with them, without so much as an apology.
airuphere 2
Maybe Boeing can use the covid break to catch up on their cert. no surprise for aircanada.. 737 max was the first narrow Boeing in the feel since the early 90s.. with Airbus looking at a stretch a220 no surprise.
ADXbear 2
Airport resturants... reuse..
Rick Polley 1
Where is the accountability? There must have been a few from Boeing's management that gave the green light for the unsafe aircraft to fly. Muilenburg and his cronies should be up on manslaughter charges at the very least.
trentenjet 1
it's going to keep getting worse for Boeing
Chris B 1
No rush to get the Max back. Take your time Boeing.


The airline industry both domestic and especially internationally is going to crater.

The international flights to the 13 US cities will evaporate as airlines complete the repatriation of Americans and nobody wants to fly. Airlines don't want to fly half empty aircraft.

Project sunrise is dead.

This is a body blow to A350/777/747 large international aircraft. The future is A321xlr type
Ric Wernicke -1
Perhaps the real reason to cancel the orders is not because of the MAX grounding and problems getting accepted by safety agencies, but rather a lack of need for the airplanes. The reason they lack the need is that WestJet is kicking the AC donkey and increasing market share.
lecompte2 1
The simple reason why airlines are cancelling orders for the Max is that the passengers have lost confidence in the Max and Boeing itself. WestJet is committed to the 737Max and other models like the Ng that have similar problems like the electrical wiring bundle problem.
Air Canada is also fully committed to the B737, just not to the number they originally wanted. It says so in the text.
DGR Rathborne 3
If they didn't need them , why order them . But where these canceled ones due to replace older ones .
I still want to see if other Airlines will do the same in the future .
Between the order and the cancellation the needs of Air Canada changed. They cancelled 11, but keep the other orders active.
the hobbs 1
It has nothing to do with passenger confidence in the MAX... It has everything to due with them loosing passengers to other airlines and the industry changing.

The wiring bundle "problem" is due to the part 25 certification guidelines had changed since the NG was produced and it was self disclosed by Boeing.

But you can continue with the whole "money over safety" garbage that the media spreads...
Randy Marco -6
Yeah the whole MCAS was Fake News.... one sensor, Fake News!

Everything YOU don't understand or want to believe is Fake News. You are proof of the ignorance that gave rise to a buffoon like trumpf.
Randy, do you still support Isis?
the hobbs 0
What a well put together response!

If you were able to read and comprehend my response it was to WHY AirCanada was canceling a part of the 737MAX order.

But yeah, the easy route when you don't understand things is to go off on some politically charged rant about Ornagemandbad, the next 5 years are going to be rough for ya pal.
I think you are right about the lack of need, it is clearly written in the text. What I’m not sure off is the reason you give, WestJet. It’s probably because of a general downturn that Air Canada expects to last for quite a few years.
Mark Weiser -4
This so called crisis was started and pushed forward by China and their refusal to be accountable. Sort of like the finger pointing at Boeing, the media have no wars, depressions, mass shootings to report, so they have blown this crisis way beyond reason.

Max and Covid are the same phenomena, shoot first, freak everyone out, let the idiot "experts" yammer 24 hours a day, then everyone buys 6 months worth of toilet paper, I have always thought that much of America is full of S%$*! This proves it. Give me a low priced ride on a Max I'm there!
lecompte2 2
But why the pilots who know it would rather not fly it.
Like Forkner!


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