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Boeing sees 983 orders collapse with Covid and 737 MAX deliberations still on the ground

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After years of booming sales, aircraft manufacturer Boeing continued to decline in the third quarter of this year, with nearly 1,000 orders canceled or questioned.

The crisis caused by the new coronavirus in the aviation industry was a severe blow to the industry and especially to Boeing. The company, which has suffered a ban on its 737 MAX flights after two fatal accidents, saw its aircraft deliveries drop to 28 in the third quarter of this year, down from 63 in the same period last year.

In addition, the American company was still facing a number of different production stoppages on its 787 Dreamliners, which together could dangerously weaken the jet’s carbon composite structure. The results forced the company to conduct inspections and repairs on the aircraft.

“We continue to work closely with our customers around the world to understand their short- and long-term fleet needs and match supply and demand as we manage the significant impact this global pandemic has on our industry,” said the director. Greg Smith.

According to Bloomberg, of the nearly 1,000 canceled or questioned orders, a third are actually canceled, while the remainder have been classified as discarded under a US accounting standard.

The aircraft maker saw a decrease of 983 net aircraft orders, a 19% decrease in its backlog. The manufacturer was unable to register any orders in four months of 2020.

All of these effects lead to a restructuring of Boeing. The company trimmed its workforce, revamped its global footprint, and eliminated some investments to ensure financial health and to face a market that is experiencing a long decline and is heading towards it.

Boeing x Airbus

Compared to its big European rival Airbus, the company has also seen a significant drop in delivery numbers.

Although Boeing registered 8 aircraft orders against just 5 from Airbus in the third quarter, the American company delivered just 11 jets in September, compared to 57 deliveries by its European rival.

Something good

Despite so much bad news, the company is celebrating the fact that it first fixed the production downtimes on its 787 Dreamliner. The manufacturer shipped 7 units last month versus just 4 shipments in August.

According to a company spokesman, some of the eight Dreamliners that were halted due to manufacturing issues have returned to service.

The manufacturer cites that it is taking steps to resize, reshape and remodel its stores in order to maintain liquidity, adapt to the new reality of the market and ensure the delivery of the highest standards of safety and quality as it is positioned as more resilient too long term.

“Our diverse portfolio, including our government services, defense and space programs, continues to provide stability as we more adapt and rebuild for the other side of the pandemic,” added Greg Smith.

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