Customers cancel orders for early Boeing 787s

EVERETT — Two customers canceled orders this month for nine of the 10 early production 787 Dreamliners that Boeing has struggled to sell, reports the Wall Street Journal.

The 10 airplanes are known as the “terrible teens” because they were between the 10th and 22nd planes built in the 787 program.

The lessons learned from early Dreamliner production were engineered into later airplanes. By comparison, the terrible teens are much less efficient to operate.

The Journal reports:

“In 2012, Indonesian discount airline Lion Air Group ordered five of the planes, and Russian carrier Transaero Airlines ordered four, according to two people familiar with the deal. Financial terms weren’t disclosed.

“This month, Lion Air said it canceled its five orders. A spokesman didn’t respond to a request for comment. On Thursday, Boeing said another four 787 orders had been canceled, which a person briefed on the matter said were the teens jets ordered by Transaero. The Russian carrier didn’t respond to a request for comment.”

China’s LAN Airlines and a Korean buyer could purchase three of the planes, “according to people familiar with company plans,” the Journal reports.

The Dreamliner remains very popular with airlines, and it hit 1,000 orders in less time than any other twin-aisle jetliner.

However, it still costs Boeing more to produce a Dreamliner than its sales price. Boeing has cut production costs, which analysts say could come down below the sales price in the next couple years.

Production rate has improved, and Boeing is on track to deliver more than 110 787s this year.

A 787-9 is parked next to the terrible teens, but there is no indication that Boeing will have any trouble delivering it.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

Talk to us

More in Herald Business Journal

Big new apartment complex anchors Broadway’s transformation

The seven-story, 140-unit Kinect @ Broadway is one of several facelifting projects in Everett’s core.

Marysville sues Arlington over plan for 500 apartments

Marysville worries the major project on 51st Avenue NE will gum up traffic at a nearby intersection.

Dining in the street is now an official thing in Everett

With a free permit, businesses can expand outdoor seating to street parking areas — and fencing is provided.

Tourism takes a vacation, and many businesses are hurting

With people staying home, do you scale back activities and events — or do you close?

Everett’s new equity manager is ready to roll up her sleeves

In her new job, Kay Barnes will work to ensure that the city’s staff reflects Everett’s diversity.

Everett startup makes a swift pivot from in-person to online

Abacus links hobbyists, crafters and artists with people who want to learn new skills — virtually.

Pop into this Everett pop-up store for new vinyl records

Upper Left Records will offer albums from local bands and new pressings of classic recordings.

Glacier Lanes won’t be spared: Owners decide to close forever

Bowlers statewide are rallying to open venues shut by COVID rules, but this Everett business isn’t waiting.

Snohomish County PUD embraces ‘smart’ meters despite concerns

A handful of customers said they were worried about privacy, peak-hour rate increases and safety.

FAA: Boeing pressured safety workers at S.C. aircraft plant

Federal officials are seeking to fine Boeing $1.25 million for practices related to 787 inspection oversight.

Microsoft tries to salvage deal to buy TikTok, appease Trump

The president had floated plans for an outright ban of the app on national security grounds.

COVID and road closures have hampered Rucker Ave. businesses

The streetscape looks better, but pedestrian traffic hasn’t returned.