Saudi airline drops 50 Max jets

Saudi Arabia's discount carrier Flyadeal has backed out of an order for up to 50 Boeing 737 Max jets, opting for the Airbus A320neo, but the decision doesn't necessarily indicate turbulence ahead for the US aircraft manufacturer.

The prospective deal with Boeing, never formally signed, came weeks after a Max jet operated by Indonesian budget carrier Lion Air crashed last year, killing all on board. The deal with Boeing was valued at about $5.5 billion before industry standard discounts, which are routinely kept confidential.

Flyadeal, the budget airline arm of Saudi Arabian Airlines, began service in September 2017 using the Airbus A320. The A320neo is an updated, fuel-efficient version of its predecessor.