Monday, 14 October 2019

Boeing's Russian dreams are over!

Boeing's Russian dreams are least with Aeroflot and the leading Russian carrier cancels its order for 22 787 Dreamliner aircraft.

The US manufacture tried to bury the news in its monthly order release, but was picked by the Seattle Times and has punched a big hole in the production schedules. Boeing had only recently increased the completion rate of the type from 12 to 14 a month. According to sources, news agency Reuters reports that Boeing has several production vacancies in 2022 and the firm may have to cut down production rates. Some industry insiders have said that as much as 20% of production slots remain unsold. 

The cancellation of 22 aircraft had a list price value of around $5.5 billion at list prices and is a massive loss to the company at a time when losses are mounting over the grounding of the 737 Max aircraft and the 100's of lawsuits being filed against Boeing.

Boeing is also loosing out on the wide-body market, according to senior management, because of the US-China trade war, which despite recent overtures, is starting to bite. The firm is hoping there will be a relaxation in the trade conflict, “There is dependency there on Chinese orders ultimately coming through,” the CEO Dennis Muilenburg said recently.

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