LOS ANGELES (dpa) – Aircraft manufacturer Boeing lost a five-billion-dollar order from Air Berlin, the struggling German carrier announced Friday.
Air Berlin said its cancellation did not require it to make any compensation payments to the Chicago-based jet manufacturer. The order of 18 Boeing 737 and 15 Boeing 787 aircraft was cancelled in an effort to cut spending.
“Not taking on the 33 aircraft ordered will significantly reduce future capital expenditure for Air Berlin and improve our balance sheet,” said Ulf Huettmeyer, chief financial officer for Air Berlin.
The airline, which is partly owned by Abu Dhabi’s Etihad Airways, will keep its 45 Boeing 737 aircrafts in service in Europe, he added. Germany’s second largest airline hopes to complete the restructuring by 2016.
The airline would lease and buy planes for its fleet on a smaller scale than originally planned, the statement said.