Allowing for cancellations and changes to earlier orders, Chicago-based Boeing said it had received just 54 new orders for planes in 2019 and delivered less than half as many as a year earlier, losing the top spot to its European rival for the first time in eight years. reports Reuters.
The firm is starting to see more cancellations for its flagship 787 aircraft in recent weeks, some say this is just the changing face of commercial aviation, whilst other commentators believe it has more to do with the continuing engine issues afflicting the craft and the more rapid replacement of parts needed. However, even after all these issues, the order book at the US planemaker still stands at an impressive 5400+.
The aviation industry is seeing a slowdown in orders, as fears of an economic downturn linger and global economies slow amid an ongoing U.S.-China trade war.
Boeing said on Tuesday deliveries fell by 53% to 380 planes over the whole of last year, as the MAX’s grounding made it impossible for it to deliver the planes to airline customers, forcing it to halt production earlier this month, Reuters said.
Planemakers receive most of their revenue when aircraft are delivered - minus accumulated progress payments - making final delivery crucial for their finances.
According to Reuters, some aviation analysts estimate that the US manufacturer was losing around $1 billion each month due to the 737 max groundings.
Boeing parted ways with Chief Executive Officer Dennis Muilenburg last month as it became increasingly clear that he was making little headway in resolving the crisis. The boss still got a massive payout - more than $60 million - at the same time lawyers are trying to reduce the amount the firm pays out to the families of those killed in the two Max aircraft crashes. s jittery about its prospects in 2020.
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