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Boeing reports order for 32 737s canceled
AFP via Google News ^ | 2/4/2011 | AFP via Google News

Posted on 02/04/2011 9:52:21 PM PST by ErnstStavroBlofeld

US aerospace giant Boeing said Friday that a customer had canceled an order for 32 of its best-selling single-aisle 737 aircraft.

In a weekly table on changes in orders and deliveries for commercial aircraft, Boeing reported 32 orders for the short-to-medium-range plane were canceled, leaving net orders for 737s so far this year at zero.

The canceled order was placed before 2011 and the customer did not want to be identified, Boeing spokesman Doug Alder told AFP.

The Chicago-based firm has taken 32 new orders for 737s in the year to date: Alaska Airlines, 15 planes; the US Navy, six; one from a non-airline operator; and 10 more just revealed Thursday, from "unidentified customer(s)".

(Excerpt) Read more at google.com ...


TOPICS: Foreign Affairs; News/Current Events
KEYWORDS: 737; aerospace; boeing; commercialjet; passengerjet

1 posted on 02/04/2011 9:52:23 PM PST by ErnstStavroBlofeld
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Boeing lost the order from Dubai Aerospace Enterprise Ltd


2 posted on 02/04/2011 9:55:33 PM PST by ErnstStavroBlofeld
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To: ErnstStavroBlofeld

LOL, could it be a little country, that is flat ass broke, with the tallest building and where the whip little girls to death.


3 posted on 02/04/2011 9:56:16 PM PST by org.whodat
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To: ErnstStavroBlofeld

Corporate (I assume) cold feet like this doesn’t sound to at all like a recovery is on the way.

Scared money sits on the sidelines.


4 posted on 02/04/2011 9:58:10 PM PST by One Name
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To: ErnstStavroBlofeld

Is this the country that the most expensive real estate is sinking in to the sea?


5 posted on 02/04/2011 9:59:50 PM PST by Jack_1
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To: org.whodat

Dubai Aerospace has been studying whether to scrap more orders as aircraft demand wanes.


6 posted on 02/04/2011 10:00:41 PM PST by ErnstStavroBlofeld
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To: ErnstStavroBlofeld
...canceled an order...

Hey obama, how's that "recovery" going? A**.

7 posted on 02/04/2011 10:09:40 PM PST by ThunderSleeps (Stop obama now! Stop the hussein - insane agenda!)
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To: ErnstStavroBlofeld
No cancellation is good news, but a single customer cancellation is not a signal that the latest production boom is over. 2010 was a remarkable year for airplane orders for Boeing with 530 net orders last year – more than double the original projection. The Next-Generation 737 set a company record for the second consecutive year, delivering an average of 13 737s per week.
I've been at the 737 plant in Renton for 25 years and I have never seen it so busy. This cancellation was not even a topic of discussion today among employees.
8 posted on 02/04/2011 10:30:40 PM PST by NavyCanDo
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To: NavyCanDo
2010 was a remarkable year for airplane orders for Boeing with 530 net orders last year

Please. Boeing is barely hanging on. They still can't get their albatross Dreamliner to a customer.

9 posted on 02/04/2011 10:41:41 PM PST by newzjunkey
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To: newzjunkey

I work there. Been there for 25 years, they are hanging on nicely I assure you.


10 posted on 02/04/2011 11:25:15 PM PST by NavyCanDo
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To: NavyCanDo

What happens when an order gets cancelled for something like this? Does Boeing only begin production after receiving some portion of payment, so that the customer assumes some financial responsibility for the product before it goes into the production pipeline, or could Boeing potentially end up with a bunch of aircraft in production that they end up receiving no compensation for?


11 posted on 02/05/2011 4:00:21 AM PST by RightFighter (Now back to my war station.)
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To: RightFighter

Boeing builds 31 737s per month, and has a healthy backorder of several hundred planes.


12 posted on 02/05/2011 6:40:22 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: RightFighter

“What happens when an order gets cancelled for something like this? Does Boeing only begin production after receiving some portion of payment, so that the customer assumes some financial responsibility for the product before it goes into the production pipeline, or could Boeing potentially end up with a bunch of aircraft in production that they end up receiving no compensation for?”

Good questions. I won’t pretend to know everything about customer contracts because that is not where I work, and I also don’t want to divulge to much on a public forum getting me in trouble, but there are provisions in the contracts on cancelations and the compensations the airline have to pay if they cancel firm orders. I’m not even sure if these were firm order cancelations or options cancelations. There is a difference there as well and the news media often gets that wrong. You will have a sale of 30 airplanes with an option of 20 more, and later the airline cancels the optional 20 and you have big headlines in the Seattle Times “airline cancels 20 airplanes”.

Regardless - these airplanes were not in production, very few cancelations ever are, but someplace out in the product skyline , for example 3 from March 2013, 6 from April 2013, another 2 from July and so on. And those holes are filled right away by sliding other customers into their slots or just places to put new orders – and we are getting allot of those. Other airlines are happy to fill those holes, believe me. If we ordered cars this way, made-to-order, and not getting it for nearly two years after placing your order, you would be thrilled if they said, Mr. Rightfighter we have a cancelation so we can give you your car 6 months earlier. It’s like that in this business as well.
Now if we had a trend of cancelations, and huge blocks opening up, and other customers wanting to slide their orders way out, like what happened after 9/11 then I would be worried, but that is not happening. Quite the opposite.

And what happens if an airplane is in production is canceled? And that rarely happens – No Boeing does not eat the cost. It is what we call a white-tail (no customer), and they are often picked up by a Leasing company before they even make it out the door.


13 posted on 02/05/2011 7:59:33 AM PST by NavyCanDo
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To: RightFighter

“What happens when an order gets cancelled for something like this?”

It depends. But all of these transactions i knew where:
It takes a downpayment for the order.
Downpayments of canceled orders can be shifted to other orders/payments of other orders. This sometimes is also offered by Boeing to get a free slot for a other customer.
Cancel a few 737s and get a 777 for free. But as i said these deals are usually very custom and confidential things, not like the standard offers you get from Ford or GM :-)
The only things that get usually known are orders and cancelations due to required SEC filings.


14 posted on 02/05/2011 10:27:35 AM PST by buzzer
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To: NavyCanDo
.


you guys are "shipping" 13 aircraft a week ?

all they way to Final Assembly and Fight Testing ?

that's incredible !!!


.
15 posted on 02/05/2011 7:24:54 PM PST by Patton@Bastogne
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To: Patton@Bastogne

“you guys are “shipping” 13 aircraft a week ?”

And we are about to crank it up a few notches, so you aint seen nothing yet.


16 posted on 02/05/2011 11:26:24 PM PST by NavyCanDo
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To: Patton@Bastogne
“you guys are “shipping” 13 aircraft a week ?”

This is the same company that rolled out 16 B-17s a day during WWII. We know how to wow people when we have to.

17 posted on 02/05/2011 11:29:05 PM PST by NavyCanDo
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