Published: Friday, March 6, 2009
Boeing airplane orders take a nosedive in 2009
Cancellations outstrip new requests so far this year
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Ted S. Warren / Associated Press
Boeing Co. airplanes sit on the tarmac of the company's Commercial Airplanes Division facility in Seattle on Feb. 6. Boeing said Thursday that it received just four orders in February, down from 125 during the same month in 2008. It delivered 36 jets compared with 39 in the same month last year, according to figures on the company's Web site.
EVERETT -- The Boeing Co. posted 200 fewer jet orders at the end of February than the aerospace company won during the first two months of 2008.
Boeing still has more cancellations in 2009 than it has new aircraft requests, even after winning orders for three 777 jets this past week, according to the company's Web site. The company also trails last year's total of jet deliveries through the end of February with 71 aircraft delivered, compared to 78 in 2008.
Boeing has net loss of 10 orders as of Tuesday, receiving 32 cancellations this year on its delayed 787 and only 22 new orders. Air New Zealand placed one order for a 777 this week, and an undisclosed customer requested two 777s. The remainder of Boeing's new orders this year are for its 737.
Despite a softening in the market, Boeing has said it intends to deliver 480 to 485 aircraft this year. And the aircraft maker said it has not slowed down jet production. But Boeing needs to deliver roughly 40 jets per month to meet its delivery goal. The company delivered 36 aircraft in February, compared to 39 last February.
Jim McNerney, Boeing's chief executive, said earlier this year that the company is overbooked for 2009 and could accommodate "significant" deferrals this year, particularly on its 737 line. Boeing started 2009 slightly behind schedule, because of a 57-day strike by its Machinists last fall.
But a steep decline in passenger and cargo air traffic, coupled with havoc in the credit market, could lead airlines to hold off placing new orders or defer taking new jets.
"The question is how much of the existing backlog is going to be able to be financed by the airlines in the current credit market," Michael Derchin, an analyst at FTN Midwest Securities, told the Associated Press.
Rival jet maker Airbus also had more cancellations than orders through the end of January. The European company updates its orders and deliveries monthly. Airbus will slow production on its single-aisle A320 by October.
Boeing is expected to make a decision on its 2010 production rates in May. The company already is implementing cost-cutting moves, announcing a plan to slash its work force by 6 percent. Boeing gave layoff notices to 466 Machinists in the Puget Sound region last month, despite previous assurances that it wouldn't cut positions in production.
Shares of Boeing were down 3 percent Thursday to close at $29.39.
How many net jet orders will Boeing and Airbus get this year? Read Herald reporter Michelle Dunlop's Aerospace blog at heraldnet.com to vote in a reader poll.
Boeing still has more cancellations in 2009 than it has new aircraft requests, even after winning orders for three 777 jets this past week, according to the company's Web site. The company also trails last year's total of jet deliveries through the end of February with 71 aircraft delivered, compared to 78 in 2008.
Boeing has net loss of 10 orders as of Tuesday, receiving 32 cancellations this year on its delayed 787 and only 22 new orders. Air New Zealand placed one order for a 777 this week, and an undisclosed customer requested two 777s. The remainder of Boeing's new orders this year are for its 737.
Despite a softening in the market, Boeing has said it intends to deliver 480 to 485 aircraft this year. And the aircraft maker said it has not slowed down jet production. But Boeing needs to deliver roughly 40 jets per month to meet its delivery goal. The company delivered 36 aircraft in February, compared to 39 last February.
Jim McNerney, Boeing's chief executive, said earlier this year that the company is overbooked for 2009 and could accommodate "significant" deferrals this year, particularly on its 737 line. Boeing started 2009 slightly behind schedule, because of a 57-day strike by its Machinists last fall.
But a steep decline in passenger and cargo air traffic, coupled with havoc in the credit market, could lead airlines to hold off placing new orders or defer taking new jets.
"The question is how much of the existing backlog is going to be able to be financed by the airlines in the current credit market," Michael Derchin, an analyst at FTN Midwest Securities, told the Associated Press.
Rival jet maker Airbus also had more cancellations than orders through the end of January. The European company updates its orders and deliveries monthly. Airbus will slow production on its single-aisle A320 by October.
Boeing is expected to make a decision on its 2010 production rates in May. The company already is implementing cost-cutting moves, announcing a plan to slash its work force by 6 percent. Boeing gave layoff notices to 466 Machinists in the Puget Sound region last month, despite previous assurances that it wouldn't cut positions in production.
Shares of Boeing were down 3 percent Thursday to close at $29.39.
How many net jet orders will Boeing and Airbus get this year? Read Herald reporter Michelle Dunlop's Aerospace blog at heraldnet.com to vote in a reader poll.
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