Fri, May 17, 2019
Order Book Stangent As 737 MAX Issues Persist
Boeing's troubles with the 737 MAX is impacting its order book for all of its airplanes. The company reportedly logged no new orders for any aircraft in April.
CNN reports that the company has received no new orders for 737, 777 or 787 airplanes, according to a report released Tuesday. The last orders received by the company were 20 Dreamliners from Lufthansa, and 18 777X airplanes from British Airways. Both of those orders were received in March.
Standard & Poors credit analyst Philip Baggaley told CNN that in his view, airlines are holding off to see if the planemaker starts to lower prices in light of its problems with its workhorse single-aisle airplane. But he said it would probably not be direct cash compensation, but rather lower prices on future orders, or non-cash considerations in existing orders.
Airlines such as United and Norwegian have said they are anticipating some kind of compensation offer from Boeing due to the grounding of the 737 MAX airplanes.
Orders have been down for both Boeing and Airbus so far this year due largely to massive orders in the past several years which will have the assembly lines for both companies churning for years. Teal Group aerospace analyst Richard Aboulafia told CNN that Boeing had a "God-awful first quarter" on its order book due to a "massively over-ordered environment."
Additionally, the Paris Air Show is being held next month, and airlines often hold back on ordering aircraft prior to the show so that they can make major announcements during that week.
(Image from file)
More News
Aero Linx: JAARS Nearly 1.5 billion people, using more than 5,500 languages, do not have a full Bible in their first language. Many of these people live in the most remote parts of>[...]
'Airplane Bounced Twice On The Grass Runway, Resulting In The Nose Wheel Separating From The Airplane...' Analysis: The pilot reported, “upon touchdown, the plane jumped back>[...]
"Burt is best known to the public for his historic designs of SpaceShipOne, Voyager, and GlobalFlyer, but for EAA members and aviation aficionados, his unique concepts began more t>[...]
"Polaris Dawn, the first of the program’s three human spaceflight missions, is targeted to launch to orbit no earlier than summer 2024. During the five-day mission, the crew >[...]
There Are SO Many Ways To Get YOUR Aero-News! It’s been a while since we have reminded everyone about all the ways we offer your daily dose of aviation news on-the-go...so he>[...]