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Boeing orders sink as customers opt to swap MAX

Stock Markets Nov 12, 2019 01:40PM ET
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© Reuters. FILE PHOTO: An aerial photo shows Boeing 737 MAX aircraft at Boeing facilities at the Grant County International Airport in Moses Lake
 
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(Reuters) - Boeing Co (N:BA) took 10 new plane orders last month, but saw some customers swapping the U.S. planemaker's grounded 737 MAX planes in favor of more expensive wide-body planes as doubts lingered about the MAX's return to service.

Net orders so far this year came to just 45 at the end of October, down from 56 in September, further widening the gap on sales this year with the company's European rival Airbus SE (PA:AIR) which has now sold nearly 500 more planes.

After an accounting adjustment representing jets ordered in previous years, but now unlikely to be delivered, Boeing's net total for orders this year sank to a negative 95 airplanes.

The orders included what Boeing called a "conversion" by Air Lease Corp (N:AL) of 15 MAX orders into five 787 Dreamliners. Turkmenistan Airlines also removed three MAX planes from the order book.

Air Lease, which had 135 outstanding orders for the 737 MAX as of October, down from 150 orders in September, has said the conversion reflected greater demand from airline customers for the 787 in future years.

Though several airlines have taken the MAX out of their flying schedule till March next year, Boeing on Monday indicated it expects U.S. regulators to approve the return to commercial service of the jet in the coming weeks, allowing it to possibly begin deliveries of the grounded planes next month.

Click here to view the interactive graphic https://fingfx.thomsonreuters.com/gfx/editorcharts/BOEING-DELIVERIES/0H001QX5N8B3/index.html

Boeing's orders and deliveries have lagged Airbus this year due to the prolonged grounding of its best-selling MAX jets following two fatal crashes that have killed hundreds of people.

To cope with the fallout after the grounding, Boeing has slowed production to 42 MAX jets per month from 52 earlier, causing the planemaker to take billions of dollars in charges.

Boeing deliveries fell nearly 50% to 321 aircraft in the 10 months through October, compared with a nearly 11% increase in Airbus' deliveries to 648 jets, during the same period.

Airbus has booked 542 net orders, including a record order for 300 aircraft from India's IndiGo (NS:INGL) announced last month.

Airbus wide-body orders include 12 A330neo jets sold last month to leasing giant GECAS, the aircraft leasing unit of General Electric Co (N:GE), according to people familiar with the matter. The jets are powered by engines made by Rolls-Royce Holdings Plc (L:RR), a GE rival.

Click here to view the interactive graphic https://fingfx.thomsonreuters.com/gfx/editorcharts/BOEING%20-%20DELIVERIES%20/0H001QXJ49DD/index.html

Boeing orders sink as customers opt to swap MAX
 

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Comments (4)
Steven Chen
Gamer_LG Nov 12, 2019 7:42PM ET
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the real question is who decided to keep the glitch a secret. it is obvious it'll come back biting hard.
Rony Trade
Rony Trade Nov 12, 2019 12:30PM ET
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@Hank Williams - It is allready the case, and that is the matter. Deaf hears are no substitute for strong a action. This is what the market want, but this is what Calhoun position at Blackstone forbid. Conversion rate to dreamliner will accelerate and at term, the 737 Max production cost will only become even further more unsustainable. The 737 Max is a problem for Boeing, the only way out is to abort all operations now, redraw the entire fleet of this model worldwide and cut a deal with Airbus for replacement.
Hank Williams
Hank Williams Nov 12, 2019 12:14PM ET
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Boeing is getting to be an embarrassment like somebody else I know.
Rony Trade
Rony Trade Nov 12, 2019 11:33AM ET
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As a natural and rational concequance.
Kody Kni
Kody Kni Nov 12, 2019 11:33AM ET
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Hey Rony glad to see you are doing well!
Rony Trade
Rony Trade Nov 12, 2019 11:33AM ET
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Thank you Kody, hoping that the same goes for you □.
 
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