Boeing Co. Announces Orders and Deliveries Update For August 2015
Boeing received no new orders for its jumbo 747 aircraft in August, as most airlines now prefer smaller fuel efficient aircraft.
On Thursday last week, Boeing Co. issued its monthly deliveries and order details for the month of August. The updated list shocked the Air Line industry as the company got no order for its 747 jumbo aircraft. It receives orders on its 737 smaller single aisle jets. The demand for wide body jumbo jets has fallen lately.
Boeing’s overall net orders are 447 jets for the current year. Earlier in July, it had 4 orders for 747 jets, which were canceled later, which left the company with no net orders for the 747 jets. Other than 747 aircrafts, Boeing received around 321 net orders for 737 model jets, 24 orders for 787, 48 orders for 767 jets and 54 for 777 aircraft.
Boeing’s competitor Airbus Group has not yet revealed its monthly order update, but it is most likely to release the details in coming weeks. The company has also witnessed issues with its jumbo jets sale, because of less demand from customers.
Earlier in June, the aircraft manufacturer announced a reduction in its monthly 747 aircraft production, keeping in mind the falling demand. Previously, the company used to make around 15 747 aircrafts per year. Boeing now plans to produce only 12 jets every year, starting from upcoming fiscal year.
Comparing the 747 jets efficiency with Airbus A380 jet, Boeing Co. believes that its 747 jet consumes comparatively less fuel than Airbus’s 380, because of its 2 engines against 4 of A380. Airbus has also witnessed problem with its jumbo jets sale, however, it is still confident that with an increase in air travel the demand is expected to go up. Air Lines all over the globe are shifting to single aisle smaller aircrafts to report higher revenues for the unit and cut fuel expenditures. Airbus also did not have any order for A380 aircrafts and just one order for A350 jumbo aircraft this year.
Furthermore, airline with 747 jets are currently looking to phase out the jet. Delta Air Lines still uses Boeing’s 747 jets but plans to stop the use by the end of year. It is looking for a cheaper and fuel efficient alternative to switch the 747 aircraft.
The 747 orders cancellation is also going to affect the company financially. Currently, Boeing has 29 aircrafts on 747, which is sufficient to keep the production line full for the upcoming 2 years. However, if Boeing receives more orders, it will be required to shut its production assembly.