Boeing 737 MAX Jet Order Canceled by China Leasing Bank

China Development Bank Financial Leasing canceled an order of 29 Boeing 737 MAX planes list-priced at a minimum $2.9 billion, a media report says.
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Boeing  (BA) - Get Report shares fell on Monday after China Development Bank Financial Leasing canceled an order for 29 of the aerospace giant's 737 MAX planes.

The world’s second biggest airline maker also was the subject of rating action by securities analysts at two investment firms.

The 737 MAX jets go for at least $2.9 billion based on list prices, according to Bloomberg. 

Multiple airlines have canceled orders since the plane was grounded last year after it was involved in two fatal accidents and the coronavirus raged.

Aviation authorities around the world grounded the MAX last year because of the accidents. Boeing was hoping that the plane could return to service by the summer, but the timing is unclear as the pandemic has virtually shut down air travel.

Boeing now has 70 orders for the MAX, the Chicago company said in a statement to the Hong Kong Stock Exchange, Bloomberg reports. 

These jets will be changed to the smaller Max 8, and 20 of them will be delayed until sometime between 2024 and 2026, Boeing said.

As for the Chinese company, "in light of evolving aviation market dynamics, we've been working together with Boeing over many months to recalibrate our MAX order book to be in line with our long-term view of the market and related opportunities," it said in a statement, according to Reuters.

Meanwhile, Citigroup cut Boeing stock’s rating to neutral from buy, though its analysts raised their share-price target to $175 from $150, according to The Fly. 

And Benchmark slashed its share-price target to $180 from $375, but affirmed its buy rating.

Boeing shares at last check stood at $147.30, down 4.4%.