SkyGazer
Topic Author
Posts: 67
Joined: Sun Feb 04, 2007 10:51 am

The Way Boeing Adjusts Orders

Fri Apr 27, 2007 4:32 pm

Going by Boeing's orders page, it seems that for any cancellations/conversions of orders, they just decrease the number from the current year's totals.

For example, listed on the page currently are:

-4 x 744s cancelled/converted into 77Ws for PR
-2 x 777s converted into 787s for AC

They take these numbers off this year's totals to get a "net orders" count. Wouldn't it be more accurate and reflective of yearly orders by adjusting orders in the year that they were first made?

For example, in whichever year those 4x PR 744s were ordered, an adjustment to the yearly count for that year could be made and displayed.

Does anyone know why they do this?
Types flown: B738, B772ER, B773, B77W, B744, A310, A320, A321, A332, A333, A343, A388
 
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SEPilot
Posts: 4962
Joined: Sat Dec 30, 2006 10:21 pm

RE: The Way Boeing Adjusts Orders

Fri Apr 27, 2007 8:44 pm

Quoting SkyGazer (Thread starter):
They take these numbers off this year's totals to get a "net orders" count. Wouldn't it be more accurate and reflective of yearly orders by adjusting orders in the year that they were first made?

The problem with this approach is that the previous year's (or two) would never be final; this system has the advantage of being able to announce a final total for the year that will stand, and to deal with cancellations/changes when they actually occur. After all, as of Dec. 31, 2006 those orders were legitimately on the books, which has real consequences for the accountants. To change it after the fact also has accounting consequenses, which would be a nightmare if it were continually revisited.
The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler