Lion Air may cancel US$22 billion in Boeing orders, as airline’s co-founder Rusdi Kirana rages over US plane maker’s bid to avoid crash blame
- US$22 billion in orders from Boeing hang in the balance in the aftermath of the Lion Air crash that killed 189 people
- Lion Air co-founder Rusdi Kirana believes Boeing has tried to deflect blame away from design changes made to its 737, sources say
Indonesia’s Lion Air is reviewing aeroplane purchases from Boeing and has not ruled out cancelling US$22 billion in orders as relations worsen over responsibility for a 737 jetliner crash that killed 189 people in late October.
Co-founder Rusdi Kirana is furious over what he regards as attempts by Boeing to deflect attention from recent design changes and blame Lion Air for the crash, while the airline faces scrutiny over its maintenance record and pilots’ actions.
Kirana is examining the possibility of cancelling remaining orders of Boeing jets “from the next delivery”, according to a person familiar with his thinking. Another source close to the airline said it was looking at cancelling orders.
A former group CEO who now serves as Indonesia’s ambassador to Malaysia, Kirana remains closely involved with Lion Air and hosts a monthly meeting in Kuala Lumpur with the heads of the group’s airlines based in Indonesia, Malaysia and Thailand.
No final decision has been made, but discussion over the fate of billions’ worth of remaining orders highlights the stakes surrounding an investigation involving Boeing’s fastest-ever selling jet, the 737 MAX, which entered service last year.
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Lion Air has 190 Boeing jets worth US$22 billion at list prices waiting to be delivered, on top of 197 already taken, making it one of the largest US export customers.