Lion Air CEO says it may cancel Boeing 737 MAX orders

A Lion Air Boeing 737-800 plane prepares to land at the Sukarno-Hatta airport in Tangerang on the outskirts of Jakarta. (Reuters)
Updated 06 December 2018
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Lion Air CEO says it may cancel Boeing 737 MAX orders

  • Lion Air is considering canceling orders for Boeing Co. 737 MAX jets following a crash that killed 189 people in October
  • Boeing declined to comment on contractual matters but industry sources say aerospace companies rarely leave room for unilateral cancelations

JAKARTA: Indonesia’s Lion Air is considering canceling orders for Boeing Co. 737 MAX jets following a crash that killed 189 people in October but has not yet made a decision, said the airline’s CEO Edward Sirait.

Sirait told a briefing that Lion Air was examining the legality of canceling orders but had not yet communicated with the manufacturer about the prospect.

The airline has 190 Boeing jets worth $22 billion at list prices waiting to be delivered, on top of 197 already taken, making it one of the largest US export customers.

Lion Air was reported to be reviewing Boeing airplane purchases and had not ruled out canceling orders as relations worsen in a spat over responsibility for the crash, according to sources.

Any cancelation of orders would need to be approved by the airline’s co-founders and co-owners, Rusdi Kirana and his brother Kusnan Kirana.

 

Rusdi Kirana ordered a review of airline purchases in response to Boeing’s statement last week focusing attention on piloting and maintenance topics related to the crash.

Boeing declined to comment on contractual matters but industry sources say aerospace companies rarely leave room for unilateral cancelations except in exceptional circumstances.

Bankers and some analysts say Lion Air and Southeast Asian rivals over-expanded and would be comfortable with fewer orders.

Lion Air, as a private company, does not publicly disclose information about its financial position.

Loss-making national carrier Garuda Indonesia has reported pressure from higher oil prices and a weaker currency.

FASTFACTS

Lion Air has 190 Boeing jets worth $22 billion at list prices waiting to be delivered, on top of 197 already taken, making it one of the largest US export customers.


Saudi Arabia and UAE launch a new joint cryptocurrency

Updated 20 January 2019
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Saudi Arabia and UAE launch a new joint cryptocurrency

  • The cryptocurrency will be limited to banks during its first stages
  • The program will also help the two countries evaluate the monetary policies of a centralized currency

Saudi Arabia and the UAE have launched a joint cryptocurrency during the first meeting of the Saudi-Emirati Coordination council Saturday in Abu Dhabi, UAE’s national press agency WAM said.

The cryptocurrency will be limited to banks during its first stages, until the governments have a better understanding of how Blockchain technology operates cross-borders.

The currency operates on the use of a “distributed database between the central banks and the participating banks from both sides,” aiming to protect customer interests, set technology standards and assess cybersecurity risks. The new program will also help evaluate the impacts of a central currency on monetary policies.

During the meeting, representatives of Saudi Arabia and the UAE also signed the Joint Supply Chained Security Cooperation program, which tests the two countries abilities to provide vital supplies during times of crisis and national emergencies, as well as share expertise and knowledge in the field.

All 16 members of the executive committee of the council followed up on the execution of the initiatives mentioned in the Strategy of Resolve.

Representatives also set five other initiatives to enhance the cooperation between the two countries, such as facilitating the traffic between ports, improving airports to make it easier for people with disabilities to travel, creating a financial awareness program for children aged 7-18, starting a joint platform to support local SMEs, and the integration of civil aviation markets,

The committee was headed by Mohammad bin Abdullah Al-Gergawi, minister of cabinet of affairs and the future of UAE, and Mohammed bin Mazyad Al-Twaijri, minister of economy and planning in Saudi. The committee will also monitor the implementation of the initiatives.