Qatar Airways has canceled a deal with Boeing to add the plane-maker’s embattled 737 Max 10 jet to its fleet.
The Doha-based carrier originally placed an order for 25 Max 10s and options for an additional 25 more in July 2022 to serve its short- and medium-haul network. However, Boeing has faced years of certification delays with its Max 10 aircraft and has been unable to get FAA approval needed in order to deliver the plane to airlines.
The Max 10’s approval is linked to the certification of a smaller variant of the jet, the Max 7. Regulators must certify the Max 7 first, and then focus on the approval of Max 10, which is set to be the largest variant of the single-aisle 737 Max family of jets when it becomes operational, carrying up to 230 passengers with a range of 3,300 nautical miles. However, FAA regulators still need to approve an engine de-icing fix on the Max 7 jet, according to Reuters.
Qatar Airways CEO Badr Mohammed Al Meer confirmed to Bloomberg earlier this week that the airline has pulled its Max 10 order. The cancellation comes only a couple weeks after the airline placed a historic order with Boeing for dozens of new widebody planes, including 130 Boeing 787 Dreamliner planes and 30 Boeing 777-9 planes.
Other carriers, including United Airlines, have had to rearrange fleet plans as they await the delayed 737 Max 10’s prolonged certification process to be completed. United said earlier this month that it now doesn’t expect to receive its Max 10 planes until 2027 or 2028. The carrier first placed its order for 100 of the jets in 2017, making it one of the largest customers for the Max 10 in the world.
Qatar’s canceled Max 10 order also comes as Boeing has reached a deal with the Department of Justice to avoid prosecution over the two fatal crashes of its 737 Max 8 planes, according to CNBC.
The crashes occurred in 2018 and 2019 and killed a total of 346 people. The deal would compel Boeing to “pay or invest” more than $1.1 billion, including a $487.2 million criminal fine, $444.5 million for a new fund for crash victims, and $445 million more on compliance, safety and quality programs, CNBC reports. The company has already paid $243.6 million in fines that would be credited to its overall criminal levy.
The settlement would also mean the airframer would avoid being put on trial and risk being labeled as a felon. For now the deal is an “agreement in principle,” according to CNBC, but the DOJ expects to finalize the deal by the end of the week and drop the charges against Boeing.
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