AerCap CEO warns against panic discounts for Boeing 737 MAX jets

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DUBLIN (Reuters) – Owners of Boeing’s (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 (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 (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.

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