MOSCOW – Russia’s largest airline Aeroflot has formally canceled its order to purchase 22 Boeing 787 Dreamliner aircraft. The estimated value of the order was US $5.5 billion.
Russian airline Aeroflot canceled an order to US automaker Boeing estimated at $22 billion. The cancellation comes at a troubled time for the company, which faces the crisis linked to recent fatal accidents with its 737 MAX model.
The cancellation was not announced by either party, but has already left the US giant’s monthly order list.
According to a source heard by Reuters, Boeing may have to cut production by 2022.
The automaker’s Achilles heel is the 737 MAX model, purchased by airlines around the world. With design failures, aircraft can not operate for almost eight months, with no forecast for return.
Another source heard by Reuters said Boeing has dozens of 787 slots to sell or with the prospect of being empty on its production line by 2022. The exact number of vacant positions on the production line depends on the automaker’s ability to attract orders. promised by the airlines, data that is confidential.
According to available statistics, the demand for narrow-body fuselage aircraft remains consistent. On the other hand, the demand for wide-body aircraft used on intercontinental flights, such as the Dreamliner 787 or the Airbus A330 and A350, is falling.
Boeing CEO Dennis Muilenburg said last month that the company was closely following the so-called “macrorisk areas.”
He also noted that Boeing had left reserved slots on the 777 and 787 production lines for orders from China that were canceled because of the trade war with the US.
“There is some reliance on the final decision on the Chinese requests,” Muilenburg said.
Some automaker suppliers were surprised by the comment, as manufacturing companies often mobilize their resources only after receiving orders, not before.
Company data show that Boeing has officially placed an order for eight 787-10 aircraft, the largest Dreamliner model, made by Air New Zealand.