Bailing on Boeing: Order Cancellations Exceed New Sales for Sixth Straight Month

For the sixth straight month in a row, customers are bailing on Boeing.

By Zero Hedge
Global Research, August 12, 2020
Zero Hedge 11 August 2020
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The embattled manufacturer saw customers abandon plans to buy 43 of its 737 MAX planes in July, where cancelled orders once again outpaced the company’s sales, according to CNBC. 

Boeing has net negative orders of 836 planes this year, inclusive of aircraft it took out of its backlog. The company “routinely removes orders from its running tally when customers are financially strained, among other reasons,” the report says.

The company’s backlog now stands at 4,496 orders.

Most of the cancelled orders have come from aircraft leasing companies. Boeing said last month it was going to cut production targets for some of its aircraft, including both the 737 MAX and the Dreamliner, citing the coronavirus pandemic hurting demand.

It could also have something to do with the constant setbacks, lax quality control and the 346 people who have died as a result of the 737 MAX – but we digress…

Recall, just weeks ago we wrote that Boeing was running out of space to park its Dreamliner aircraft that nobody wanted to buy.

“It’s not just the company’s ill-fated Boeing 737 MAX which may or may not fly again,” we said. “Boeing is now also running out of space to stash newly-built 787 Dreamliners, as unsold jetliners are now crammed onto every available patch of pavement on airfields near its factories in Washington and South Carolina.”

“Dozens of the planes are sitting on the company’s premises,” we reported, with Uresh Sheth, a closely followed blogger who meticulously tracks the Dreamliners rolling through Boeing’s factories, putting the total somewhere above 50.

That’s more than double the number of jets typically awaiting customers along Boeing’s flight lines.

According to Sheth, brand-new widebodies are lined up on a closed off runway at the airport that abuts Boeing’s hulking plant north of Seattle. In North Charleston, 787s are tucked around the delivery center and a paint hangar. The U.S. planemaker has even started sending aircraft to be stored in a desert lot in Victorville, California.

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Articles by: Zero Hedge

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