World News

AerCap CEO warns against panic discounts for Boeing 737 MAX jets

DUBLIN (Reuters) – Owners of Boeing’s <BA.N> grounded 737 MAX jet must keep cool heads and avoid offering panic discounts on sale or lease prices to avoid undermining its long-term value, the head of one of the world’s largest aircraft lessors Aercap <AER.N> said on Monday.

“Discipline and keeping a cool head is vital because if people panic and lease the airplane or sell the airplane at knock-down rates for an extended period of time, it will be harder for the residual value of that asset to recover,” Aercap’s <AER.N> Aengus Kelly told the Airline Economics aviation finance conference in Dublin.

Aercap has 100 Boeing 737 MAX jets on order.

“The brand is not in a great place right now and what we need to do is recover that brand operationally and then … be absolutely disciplined when it comes to placing the aircraft,” Kelly said.

(This story has been refiled to fix typographical error in headline)

(Reporting by Conor Humphries; Editing by David Goodman)