American warns Boeing it may trim Max order over financing

Bloomberg

American Airlines Group Inc has warned Boeing Co it will cancel orders for about a dozen 737 Max jets if negotiations fail to secure additional help to finance the planes, said people familiar with the matter.
The discussions involve aircraft for which financing deals have expired because of delivery delays and a handful of other jets for which financial arrangements will end soon, said the people, who asked not to be named because the talks are private. Aircraft lessors also are
involved in the talks, the people said. All the planes are scheduled for delivery to American this year.
A cancellation by American, one of the world’s biggest aircraft buyers, would deliver a painful blow to Boeing as the planemaker tries to end a grounding of the Max that began in March 2019 after two
deadly crashes. The return of Boeing’s best-selling jet has been further complicated by the coronavirus pandemic, which has caused travel demand to collapse and battered demand for new aircraft.
American owns 24 Max aircraft that currently are grounded, and wants to retain its existing order for 76 more, the people said. The Fort Worth, Texas-based carrier declined to comment on the talks with Boeing, while the aerospace giant said it wouldn’t discuss conversations with its customers.
“It is an unprecedented time for our industry as airlines confront a steep drop in traffic,” Boeing said in a statement. “We continue to work closely with our customers to support their operations, while balancing supply and demand with the realities of the market.”
The discussions between American and Boeing were reported earlier by the Wall Street Journal.
Boeing said it’s focussed on working with regulators around the globe to return the Max
to commercial service. The Chicago-based manufacturer and the US Federal Aviation Administration recently finished testing of the plane’s revised flight-control system, moving it one step closer to a possible comeback later this year.
Boeing logged 313 cancellations for the Max this year through May, buyers have said they would scrap additional orders since then. Lessor Avolon Holdings said it would drop 27 planned Max purchases after cancelling 75 in April.