Saudia’s Flyadeal Cancels $6b Boeing Deal, Opts for Airbus’ A320neo

Saudi airline Flyadeal has canceled an order for up to $6 billion worth of Boeing 737 Max planes, instead opting to purchase from Boeing’s top European competitor, Airbus SE, according to reports.

Flyadeal had committed to purchasing up to 50 planes from Boeing, but after the global grounding of the company’s 737 Max 8 planes in the wake of two accidents this year, Flyadeal is instead purchasing 30 Airbus A320neo family planes in a deal that replaces a $6 billion agreement it had with Boeing for its troubled 737 Max jets. The deal includes options for a further 20 A320 Neo planes.

The order cancellation is “one of the first tangible signs the crisis around the plane could shift business to European rival Airbus SE,” MarketWatch reports.

Nearly 400 Max jets around the world remain grounded since mid-March.

Flyadeal, a subsidiary of Saudi Arabian Airlines Corp., said Monday that its order means its fleet will consist of only Airbus A320s, the Associated Press reports.