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Flyadeal changes Boeing 737 MAX for Airbus A320neo

Flyadeal changes Boeing 737 MAX for Airbus A320neo”

The planemaker delivered 113 of the model plane through June compared to 269 of all 737s in the first half of 2018. In the first half of 2019, deliveries have plunged by 37% from 378 previous year to just 239 aircraft.

Airbus (OTCPK:EADSY +0.3%) confirms its H1 aircraft deliveries climbed 28% to 389 from 309 in the prior-year period, putting it ahead of Boeing (BA +0.7%) for the first time in eight years.

The Boeing announcement on Tuesday of its second-quarter deliveries of both commercial and military airplanes came one day after Saudi Arabian budget carrier Flyadeal canceled a preliminary agreement for an order of up to 50 Boeing 737 MAX jets.

Boeing's flagging sales could make Airbus, its direct competitor in single-aisle aircraft, the world's largest airplane manufacturer, CNBC reported.

"This order will result in flyadeal operating an all-Airbus A320 fleet in the future", the airline said.

Meanwhile, Boeing's PR woes are set to continue as airlines begin to report troubled earnings that will no doubt point to the grounded 737 MAX as a major reason for lost revenue.

The U.S. top aircraft maker cut monthly production of 737 MAX aircraft to 42 from a previously scheduled rate of 52 in April this year. Leading analysts have slashed their profit forecasts for Boeing due to the 737 MAX crisis, which has halted deliveries and forced the company to store planes after they are manufactured. It had originally expected to ramp up production to 57 a month.

Boeing announced in December - six weeks after the first crash - that flyadeal had agreed to buy 30 planes with options for 20 more in a transaction valued at up to $5.9 billion.

On Monday, the Chicago company said that it is proud of its long partnership with Saudi Arabia's aviation industry. Since then, Boeing has not reported any new order for the MAX planes.

Boeing previously got a boost at the Paris Air Show when the parent company of British Airways and Spain's Iberia said it meant to buy another 200 Max planes.



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