China Development Bank (CDB) Financial Leasing said it had agreed with Boeing to cancel the purchase of 29 undelivered 737 MAX jets, the latest end user to cancel a contract for the grounded airplane.
“In light of evolving aviation market dynamics, we’ve been working together with Boeing over many months to re-calibrate our MAX orderbook to be in line with our long-term view of the market and related opportunities,” Xuedong Wang, chairman of CDB Financial unit CDB Aviation, said in a statement.
The lessor said it retained an order for another 70 of the planes that also have yet to be delivered. Boeing recorded a total of 150 MAX cancellations in March, including 75 from Irish leasing company Avolon, according to Reuters, while Brazilian carrier GOLaxed its order for 34 airplanes last week.
So far US regulators have yet to indicate when the MAX will be certified and airlines, and lessors, suffering from COVID 19 downturns in passenger traffic have taken the opportunity to reduce their orders for the troubled airplane.
CDB’s chief executive, Patrick Hannigan said that the orderbook change was beneficial to all parties involved and will strengthen the lessor’s ability to drive continued growth.
While Boeing said in a statement. “We have held ongoing discussions with CDB Aviation regarding their 737 MAX portfolio amid the impacts from the MAX grounding and the current market challenges.
After these conversations, we reached an agreement to restructure their MAX order book. As we have done in the past months, where it has made sense, we have adjusted our order book to line up with the fact that we are building fewer MAX airplanes than planned.
Disciplined adjustments provide us with greater flexibility to manage the 4,000 outstanding 737 orders and protect the value of the MAX in the marketplace. In light of the COVID-19 pandemic, this adjustment also helps to balance supply and demand with market realities, especially in the leasing channel. CDB Aviation is a valued customer, and we look forward to supporting their future needs.”