Romanian low-cost airline Blue Air on said Thursday it had cancelled an order for five Boeing 737-aircraft owing to financial problems.
"Blue Air in agreement with Boeing has cancelled an order made in 2008 for five Next-generation 737 that were expected to be delievered between 2015 and 2016", the airline said in a statement.
The order was worth $462.2 million (353 million euros), the company said.
Blue Air's parent company Romstrade is in financial trouble. Its chief executive Nelu Iordache was arrested in December for suspected fraud and money laundering.
Iordache is accused by antigraft prosecutors of misusing 6.0 million euros of European funds provided to Romstrade to build a highway in Romania.
Prosecutors allege that Iordache spent part of this amount to finance Blue Air. This would have been in clear violation of European Union rules.
Blue Air said that the cancellation of the Boeing order "is not affecting the activity of the airline".
It added: "All flights are operated according to the normal schedule."
Â© 2013 AFP
Date: Jan 10, 2013