Boeing 737NG lease rates likely to increase by 10% on MAX grounding

The grounding of Boeing 737 MAX jets across the world in the wake of the crash of an Ethiopian Airlines plane that killed over 150 passengers could lead to an increase in lease rentals of the aircraft’s earlier variant, 737NG (next generation), according to aviation consultants and executives from leasing firms.

Demand for the Boeing 737NG model remains firm, they said, adding that rates might rise by about 10 per cent.

Regulators around the world suspended flights of 737 MAX planes following the Ethiopian Airlines crash last Sunday. The 737 MAX aircraft, which comes with a fuel-efficient engine, entered into service in 2017, and globally there are over 350 such planes with airlines. The MAX’s earlier variant, known as the NG series, continues to be a mainstay for carriers around the world, including Air India Express, Jet Airways, and SpiceJet in India.