Boeing drops Jet Airways orders from their books

Jet Airways placed an order for 75 737 MAX with Boeing in 2013, which they firmed up in 2015. In 2016, Jet Airways placed an order for 10 Boeing 787-9 which they kept on deferring for years. Jet Airways followed up with an order for 75 more 737 MAX in April 2018. In May 2018, Jet Airways was planning to order 75 more 737 MAX. Jet Airways firmed up the order for 75 more 737 MAX in July 2018 taking the total 737 MAX on order to 225.

Boeing’s order book, on the other hand, reflects only 125 737 MAX. There may have been a few cancellations in 2017 from the original order placed in 2013. The last order for 75 737 MAX was placed with Boeing Capital instead and hence may not reflect on Boeing’s order book.

Jet Airways 737 max

Jet Airways orders with Boeing

Boeing delivered the first Jet Airways 737 MAX 8 in June 2018. Another four followed soon. But due to financial conditions, lessors took delivery of more 737 MAX from Boeing but stopped delivering them to Jet Airways. Meanwhile, Boeing continued the production of 737 MAX for Jet Airways. 5 Jet Airways 737 MAX are put in storage at the Boeing factory, and another two are on the flight line.

Jet Airways temporarily suspended operations from April 17, 2019. In light of this, Boeing transferred the order for 125 737 MAX and 10 787-9 to Boeing Capital. This meant a decrease in Boeing’s order book.

Jet airways 737 max

Boeing’s order book as of March 31, 2019

Jet Airways 737 max

Boeing’s order book as of April 2019

According to Boeing’s statement to LiveFromALounge,

The Jet Airways orders are not cancelled. Our contractual agreements with Jet Airways remain in place. The update to Boeing’s Orders and Deliveries website reflects the alignment with the accounting standards for recognizing revenues.

So basically, the order isn’t cancelled, but the order won’t bring any revenues in the future hence it is hived off to its subsidiary. If Jet Airways is to restart operations the order would then be added back to the Orders and Deliveries of Boeing.

What do you think of Boeing’s decision to drop Jet Airways order?

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