Malaysia Airlines suspends taking delivery of Boeing 737 MAX jets due to grounding

Malaysia Airlines had been due to take delivery of its first 737 MAX aircraft in July 2020. (Reuters)
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Updated 15 January 2020

Malaysia Airlines suspends taking delivery of Boeing 737 MAX jets due to grounding

  • Malaysia Airlines decision represents another setback for Boeing
  • The carrier had been due to take delivery of its first 737 MAX in July 2020

KUALA LUMPUR/SYDNEY: Malaysia Airlines said on Wednesday it has suspended taking delivery of 25 Boeing 737 MAX jets, citing the plane’s delayed return to service since it was grounded last year following two fatal crashes.
The decision represents another setback for Boeing, which on Tuesday reported its worst annual net orders in decades, along with its lowest number of plane deliveries in 11 years, as the grounding of the 737 MAX saw it fall far behind main competitor Airbus.
“In view of the production stoppage and the delayed return to service of the 737-MAX, Malaysia Airlines has suspended the delivery of its orders,” the airline said in an email.
The carrier had been due to take delivery of its first 737 MAX in July 2020 but last year its chief executive said the introduction to service could slide beyond that.
Malaysia Airlines did not respond immediately to a request for comment on how many of the 25 planes it has on order were due to be delivered this year.
Analysts said cash-strapped carriers like Malaysian Airlines that over-ordered planes could take advantage of the 737 MAX grounding to negotiate with Boeing to restructure their orders.
Virgin Australia Holdings last year said it would delay taking the first deliveries of 737 MAX jets for nearly two years to reduce capital spending.
Norwegian Air Shuttle ASA last year said its Dublin-based leasing subsidiary had reached an agreement with Boeing to postpone delivery of 14 737 MAX planes that were originally due in 2020 and 2021.
Boeing on Tuesday reported a net negative of 183 orders for the 737 MAX in 2019 including cancelations, but many were associated with the collapse of a major customer, India’s Jet Airways.
Boeing did not respond immediately to a request for comment about Malaysia Airlines’ decision to suspend deliveries of its orders.
The Malaysian government has been seeking a buyer for the debt-heavy airline, which is still recovering from two tragedies in 2014, when flight MH370 disappeared in what remains a mystery and flight MH17 was shot down over eastern Ukraine.


Nvidia deal for Arm will drive computing power growth, says SoftBank’s CEO

Updated 23 October 2020

Nvidia deal for Arm will drive computing power growth, says SoftBank’s CEO

  • Saudi Arabia's Public Investment Fund (PIF) is an anchor investor in the $100 billion Vision Fund

TOKYO/DUBAI: SoftBank Group Corp. CEO Masayoshi Son said on Thursday the sale of chip designer Arm to Nvidia Corp. will drive growth in computing power, in his first public comments since the $40 billion deal was announced in September.
Son made the comments at a virtual summit about artificial intelligence hosted by Saudi Arabia, an anchor investor in the $100 billion Vision Fund, at which he reiterated his belief that AI would transform society.
The Nvidia deal, part of a series of asset sales by Son, whose group has been shaken by soured investments and the COVID-19 pandemic, has raised concerns it will threaten Arm’s role as a neutral supplier in the industry.
Son is set to speak next week with Nvidia CEO Jensen Huang at SoftBank World, the group’s annual event for customers and suppliers that is being retooled as it focuses on investing.
SoftBank’s growing cash pile is driving speculation about future investment plans, with the Vision Fund targeting external funding for a blank-check company, a source said, in a sign the group is regaining its mojo.
“I am a risk taker,” Son said on Thursday.
Rajeev Misra, CEO of SoftBank Investment Advisers which oversees the Vision Fund, said the market share gained by online commerce companies in the last six to eight months is more than what they gained in the previous four years put together.
“COVID has accelerated the acceleration of AI even further,” Misra told the same conference, adding in the 105 companies Vision Fund 1 and 2 have invested in, artificial intelligence is the core of their businesses.