118 orders for 777x no longer firm: Boeing Co

In a statement Boeing Co said, 118 orders for its 777X widebody plane under development are no longer seen as firm under accounting rules that require it to regularly assess their viability; the planemaker has now 191 solid orders for the model.

Last week, Boeing announced a $6.5 billion charge on the 777X in part due to weaker-than-expected demand for the model and pushed back its entry into service by a year to late 2023 in anticipation of a costlier and longer, certification process.

“Delays on the 737 MAX and 777X programs have resulted in, and may continue to result in, customers having the right to terminate orders and or substitute orders for other Boeing aircraft,” said the manufacturer in a regulatory filing.

Customers for the 777X includes Lufthansa, Emirates, Etihad Airways, Qatar Airways, Cathay Pacific Airways Ltd, British Airways, ANA Holdings Inc and Singapore Airlines Ltd.

On its website Boeing has listed 350 orders despite some customers indicating that they would like to reduce their orders or push back delivery dates as they grapple with a slowdown in international travel demand citing the coronavirus-induced COVID-19 pandemic.

Incidentally, towards the end of 2019, Boeing had listed 309 of the 777X orders as firm.

Last week during an earnings call, Boeing’s Chief Financial Officer Greg Smith had said the order backlog had fallen during the fourth quarter of 2020 due to its accounting standard assessment, including the revised schedule for the 777X.

Categories: Creativity, Entrepreneurship, HR & Organization, Strategy

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: