Eg777er From United Kingdom, joined Feb 2000, 1838 posts, RR: 14 Posted (13 years 4 months 2 weeks 2 days ago) and read 3284 times:
Boeing signals further cuts in airliner production
By Mark Odell
Published: October 18 2001 14:25 | Last Updated: October 18 2001 14:47
Boeing, the world's largest commercial jet maker, on Thursday signalled a further reduction in its airliner production next year and said it was considering shutting down one of its product lines.
The announcement came as the group said third quarter net profits rose 7 per cent to $650m from $609m, for the same quarter last year. Revenues in the three months to the end of September climbed to $13.7bn, a rise of 15 per cent.
The Chicago-based aerospace and defence group said it now expected to deliver between 350 and 400 aircraft in 2002, lowering expectations further from a statement made just over a week after the attacks on the US.
In its warning last month Boeing estimated that deliveries for next year could fall to the "low 400s" down from previous forecasts of 510 to 520.
Boeing said on Thursday it was also considering closing down production of its 717 programme, the last remaining McDonnell Douglas aircraft following Boeing's takeover of that company in 1997.
The move will come as little surprise as the company has struggled to find new orders for the 100-seater short-to-medium range jet.
Boeing has, however, again raised its delivery rate for this year to 522 aircraft, after indicating last month it could fall to 500 aircraft, down from previous estimates of 538.
At the time, Boeing also said that the expected collapse in demand for new aircraft could force it to lay off as many as 30,000 workers at its commercial airplanes unit in Seattle by the end of next year.
The first wave of 12,000 workers were told last week they would lose their jobs by mid-December.
Boeing said it had taken a $100m exceptional charge in the third quarter to cover the first round of severance costs.
Further cuts in production rates were widely expected as many analysts believed Boeing's initial response was largely prepared prior to the the suicide hijackings. The company was already expected to cut delivery targets and staff, prior to September 11, as the airline industry had already been moving into recession during the first half of the year.
Boeing warned that "the commercial airplane market is in a period of unusual uncertainty" and said the downward trend would continue into 2003.
Some analysts believe further production cuts will follow and are forecasting that the number of new aircraft built next year could halve from pre-September 11 levels.
The slump in air travel has led airlines to cut routes, ground parts of their fleets and cancel or defer orders for new aircraft. So far some 200,000 jobs have gone in the global civil aviation industry, including those at major suppliers.
FlagshipAZ From United States of America, joined Jan 2001, 3419 posts, RR: 14
Reply 5, posted (13 years 4 months 2 weeks 1 day 22 hours ago) and read 2588 times:
No decision has been made yet regarding the termination of the 717 program. Boeing still has 56 outstanding orders for the type yet to be delivered. Remember folks,...it ain't over until the fat lady sings. Regards.
"Beer is living proof that God loves us and wants us to be happy." --Ben Franklin
N80NA From United States of America, joined Mar 2001, 185 posts, RR: 0
Reply 7, posted (13 years 4 months 2 weeks 1 day 22 hours ago) and read 2540 times:
don't write off the B717 just yet,
this was taken off the Boeing site today :
Boeing Reports Strong Third Quarter Results, $0.88 EPS,
Excluding Non-Recurring Item; Affirms Importance Of
Commercial Airplanes is working closely with customers to complete scheduled deliveries in the near term
and rephase deliveries in the intermediate term, taking into consideration reduced airline capacity
requirements and contractual agreements. Commercial Airplanes continues to evaluate the production and
delivery schedules of its airplane programs, which retain continuing customer support. Consequently,
Commercial Airplanes is well positioned to effectively manage through the downturn. However,
Commercial Airplanes is carefully assessing the impact of market conditions on the 717 program, which
remains the one production line in question. Commercial Airplanes is evaluating a range of alternatives,
including stopping production. While no decision has been made, a decision to stop production on the 717
program would likely result in material non-recurring charges.
757man From United Kingdom, joined Feb 2001, 370 posts, RR: 1
Reply 9, posted (13 years 4 months 2 weeks 1 day 22 hours ago) and read 2512 times:
It's a shame to hear this news, the 717 is a nice little aircraft.
Just remember though, Boeing were thinking about shutting 737 production down in the early 1970s, so you never know what is around the corner.
With the overcapacity the airline industry currently has, I thought the 717 may actually sell a few more units. It could be used on routes where the 737 and A320 are considered too big, then again, we're then heading into the territory of the CRJ and ERJ-145.
We shall have to wait and see what happens to the 717.
VirginA340 From United States of America, joined Jul 2005, 15 posts, RR: 0
Reply 10, posted (13 years 4 months 2 weeks 1 day 22 hours ago) and read 2469 times:
Boeing still has to finish up the Air Tran order and what's left of the TWA order. I think some private aircraft leasing companies placed orders as well. I hope NWA makes a good order for those 717s. It would bring back great memories of the DC-9. The A318 from the outside doesn't impress me. It looks like a fattened 737. The 717 is the last major jetliner to have rear engines and a T tail. The 727 and DC-9 along with the MD-80 and MD-90 are long gone from production but still flying. By them time I get old they'll be sitting in Tuscon or Marana.
PSU_DTW_SCE From , joined Dec 1969, posts, RR:
Reply 20, posted (13 years 4 months 2 weeks 1 day 12 hours ago) and read 2071 times:
Uh, 150-165 seats isn't the 717 market area. That is the prime 737 NG market. The 717 was meant to be smaller than the 737 family, not compete with it. I doubt you'll see Boing cancel the 717, probably cut way back on production until things pick up. The current time there appears to be a drought in the market for 100 seat market because airlines already have planes for those routes, but they will need to be retired sometime in the future and Boeing will need to have a product to replace it.
Tullamarine From Australia, joined Aug 1999, 1666 posts, RR: 1
Reply 21, posted (13 years 4 months 2 weeks 1 day 11 hours ago) and read 2053 times:
The more talk there is about the cancellation of the program, the more likely it is to happen. Airlines and lease companies are very nervous about buying an airframe that is likely to be cancelled due to the huge effect such a decision would have on the residual value of the aircraft.
NDSchu777 From United States of America, joined Oct 2001, 419 posts, RR: 3
Reply 22, posted (13 years 4 months 2 weeks 1 day 11 hours ago) and read 2045 times:
that would be really bad for midwest express. this year they just put in a big order for the 717 to replace their aging fleet. is boeing still obligated to fill all the orders for the plane, or could they breach they're order contracts and just cancel? this would be more bad luck for the struggling airline. they were the launch customer for the dornier 328 rj, but they also decided to cancel production of that plane and left midex hanging. another bad thing with the 717 getting canceled would mean midex's service would change pretty drastically. there would be no more aircraft in production with the fuselage width of the dc-9/md-88. this has worked out very nicely for midex to make all-first class aircraft with 4 across seating profitable. if there was no 717, then they'd be forced to use an A320 or 737, and would need a 5 or 6 across seating arangement to be profitable with those aircraft. lets just hope that whatever happens, midex will survive it.
Udo From , joined Dec 1969, posts, RR:
Reply 24, posted (13 years 4 months 2 weeks 1 day 5 hours ago) and read 1992 times:
They MUST keep the B717, it's a great aircraft: small, silent, clean. And it looks DIFFERENT from the common B737 and A32X designs flying around in masses.
And I don't want to see those pumped up CRJs and ERJs in that category only!
Damn, NWA should order it to replace the DC-9. I don't see an alternative as the A318 is too heavy on short hauls.
It seems the aircraft is underestimated. Nobody wants it, but the carriers that ordered it are all impressed. And the passengers too, in the air and on the ground...
NWA, please act and make it possible for us to enjoy the B717 for a long time!
Keep the 717
: People, people... A *possible* (and likely) 717 shutdown would not be the end of the world for the 717 customers. OF COURSE Boeing would finish buildi
: AirTran unfortunately just can't go out and change to back to the 737. The reason we got 717s is because they are in line with our old DC 9 - 30s. Our
: Hey Ryan Just a note...our DC9 guys that go to the 717 actually go through a 4-week course in LGB, then head to the simulators - there is actually mor
28 LGB Photos
: And this is a suprise to everyone? God could have seen this coming. Boeing does not want this airplane. Too bad, its a great aircraft. Stephen
: An appropriate heading would have been "Boeing may cancel 717". In the interest of making this forum useful to its participants, may we all please try
: I stand corrected, thanks Travis..I knew most of the systems were different....especially since it is all but 30 years newer..lol Even the systems fro