Lion, Garuda to stick with Boeing for now, say analysts

A Garuda Indonesia Boeing 737 Max 8 at Soekarno-Hatta International Airport in Jakarta. Garuda, facing financial pressure, deferred delivery of nearly all of the 50 of the aircraft two years ago and now it says it wants to cancel.
A Garuda Indonesia Boeing 737 Max 8 at Soekarno-Hatta International Airport in Jakarta. Garuda, facing financial pressure, deferred delivery of nearly all of the 50 of the aircraft two years ago and now it says it wants to cancel.PHOTO: AFP

JAKARTA - Although Indonesia's low cost carrier Lion Air and its full service rival, Garuda Indonesia have said they want out of their combined $30 billion order for Boeing's stricken 737 Max jetliner, analysts believe they will come around eventually.

Last month regulators grounded the Max 8 and the Max 9 versions in the aftermath of two crashes of the aircraft under similar circumstances within five months.

Please or to continue reading the full article. Learn more about ST PREMIUM.

Enjoy unlimited access to ST's best work

  • Exclusive stories and features on multiple devices
  • In-depth analyses and opinion pieces
  • ePaper and award-winning multimedia content