Indian carrier Jet Airways has seen its major order for Boeing airliners removed from the OEM’s official order backlog.

The airline suspended all flights April 17 after weeks in which its timetables had slowly crumbled as the carrier was progressively unable to meet lease payments on growing portions of its fleet.

Many of the aircraft are in the process of being removed from the Indian register, prior to lessors re-allocating them to other clients. The fate of the airline, which still hopes to find new sources of funding, remains unclear.

In Boeing’s 1Q earnings call April 24, CFO and EVP-enterprise performance & strategy Greg Smith noted, “In the quarter, BCA [Boeing Commercial Airplanes] captured 91 net new orders, but also removed 210 aircraft on backlog related to Jet Airways due to liquidity issues experienced by the airline.”

Of that figure, 200 were 737 MAX variants and 10 787s. The manufacturer did not break them out into individual variants.

Aircraft ordered by Boeing’s customers are subject to regular reviews under accounting regulations as to the continued creditworthiness of those customers. Where the customer fails to meet a certain creditworthiness threshold, Boeing is obliged to remove the aircraft from its official backlog.

However, the contractual agreements between the airline and Boeing remain in place, allowing the aircraft to be reinstated to the backlog if the airline’s credit position improves sufficiently.

Alan Dron