Boeing Lands First Max Order of the Year

 - August 19, 2020, 1:35 PM
Enter Air now operates two Boeing 737 Max jets. (Photo: Boeing)

The Boeing 737 Max family registered the first addition to its sales ledger this year as Poland’s Enter Air placed a firm order for two 737 Max 8s along with options for two more of the jets, Boeing said Wednesday. An all-Boeing operator and Poland’s biggest charter carrier with twenty-two 737NGs and two 737 Maxes, Enter Air began operations in 2010 with a single 737.

Boeing and Enter Air also have reached a settlement to address commercial effects stemming from the grounding of the Max fleet, said Boeing in a statement, adding that it would provide compensation in a “number of forms” and staggered over a period of time.

“In the settlement with Boeing, we agreed to revise the delivery schedule for the previously-ordered airplanes in response to current market conditions,” explained Enter Air general director Grzegorz Polaniecki. “The specific terms of the settlement are strictly confidential, but we are pleased with the way Boeing has treated us as its customer.”

Apart from the two Max 8s in now operates, Enter Air held delivery positions on another four airplanes. It stands to take delivery of 10 in total if it exercises its two options.

The deal follows several months of negative sales activity as Covid-19 concerns and the grounding of the fleet for more than a year and a half eroded demand for the Max. Boeing saw cancellations for another forty-three 737 Max jets during the month of July, bringing its net order deficit for the year to 366. The company also removed nine 737 Maxes from its backlog as a result of ASC 606 accounting adjustments, which occur when the company no longer expects to deliver the airplanes due to extenuating circumstances such as a customer’s deteriorating financial condition.

Boeing’s total order backlog fell from 4,522 to 4,496, reflecting the 43 Max cancellations, the nine-aircraft ASC 606 adjustment, and four deliveries.