Orders for Boeing's 787 Jet Keep Falling
Aug 6th 2010 8:45PM
Updated Aug 6th 2010 8:58PM
An aircraft-leasing company in the United Arab Emirates has canceled orders for dozens of planes from Boeing (BA) and Airbus.
Dubai Aerospace Enterprise canceled 25 orders in the past month at Boeing, including 15 for the company's new 787 jet.
And Europe's Airbus disclosed on its website Friday that Dubai Aerospace cut 25 planes from its orders at the European company, including 18 orders for the medium-range A320 and seven for the long-range A350.
Dubai Aerospace, the government-backed aviation financing company, still has 91 planes on order at Boeing and 75 at Airbus.
Representatives of Dubai Aerospace were not available for comment Friday evening in the United Arab Emirates.
More Cancellations Than New Orders for 787
Dubai accounted for 25 of the 26 orders that Boeing has lost in the past month. Boeing has now suffered more cancellations than new orders this year for the 787, a plane that has not yet begun flying in commercial service.
Dubai Aerospace also canceled 10 orders for wide-body 777s, typically used on long flights including international routes. An unidentified customer canceled one single-aisle 737, and Boeing received two new orders for the 737, usually flown on shorter domestic hauls.
The cancellations were disclosed on Boeing's website Thursday.
Boeing spokesman Jim Proulx said the company remains a key Boeing customer with 91 unfilled orders, although none of those are for the 787.
The 787 lists for $150 million to $205.5 million, depending on the model, so on paper the reduced 787 orders could be worth anywhere between about $2.3 billion and $3.1 billion. However, major customers routinely get discounts.
The list prices on the lost orders for the 777s and 737 range from $2.1 billion to $2.9 billion.
Financial Impact Unclear
Boeing did not disclose financial impact of the reduced backlog.
The 787, which Boeing calls the Dreamliner, is made of many composite materials designed to make it lighter and more fuel-efficient than comparable planes already in the sky. Its development has been plagued by delays, and the first delivery is now scheduled for late this year to Japan's All Nippon Airways.
Through Tuesday, Boeing had received 28 orders for the 787 and 32 cancellations this year, according to the tally on its website.
Across its fleet of planes, Boeing has received 319 orders and 64 cancellations for a net increase of 255 so far this year, the tally showed.
The Chicago-based company's most popular plane remains the workhorse 737. Southwest Airlines Co.'s entire fleet is made up of 737s.
Shares of Boeing slipped 1 cent to close at $68.70 Friday.