Boeing Co possible didn’t ship any 777 freighters in the course of the first quarter, including to its money woes at a time when 737 Max handovers are sluggish amid heightened authorities scrutiny.
The planemaker as of final week had 11 newly constructed “gliders” — an business time period for completed plane which might be missing engines — stashed in and round its manufacturing facility in Everett, Washington, Jefferies analyst Sheila Kahyaoglu mentioned in an April 5 report citing knowledge from Aero Evaluation Companions/AIR.
The cash-flow drag from 11 newly constructed however undelivered 777 freighters would translate to roughly $1.16 billion, in accordance with George Ferguson, analyst with Bloomberg Intelligence. He estimates every plane not delivered represents a money outflow of about $105 million. Boeing’s money use is a rising concern for traders after the planemaker mentioned final month that it expects to burn by $4 billion or extra in the course of the first quarter.
The bottleneck highlights how Boeing’s manufacturing challenges prolong past its cash-cow 737 Max jet. The aerospace large is working to convey its factories and provide chain again to a gentle cadence underneath scrutiny from US regulators following a collection of high quality lapses.
Boeing and the 777 freighter’s engine producer, Normal Electrical Co., declined to debate particular particulars across the supply hiccup.
“Because the aviation business continues to handle by provide chain constraints, we’re working intently with our suppliers and clients on the timing of their deliveries,” Boeing mentioned.
A GE spokesperson mentioned the corporate is coordinating GE90 engine manufacturing and supply schedules with Boeing and airline clients.
Like Boeing and Airbus SE, jet-engine producers are additionally grappling with labor turnover and components shortages which have continued because the pandemic eased. GE executives in early March mentioned about 80% of its supply shortfalls have been tied to constraints at suppliers.
Six 777 freighters have been in-built March however not delivered, Kahyaoglu mentioned, after the planemaker handed over none to clients in the course of the first two months of this 12 months.
Cirium, which tracks plane manufacturing, exhibits that solely certainly one of Boeing’s largest cargo-hauling planes took its first manufacturing facility flight in the course of the quarter. The freighter, ordered by Taiwan’s EVA Air, took off for Taipei on April 8, in accordance with FlightRadar24 knowledge. Different airways ready for the plane embody Air China Cargo, Qatar Airways and Lufthansa Cargo.
Boeing is anticipated to disclose the shortage of 777 deliveries on Tuesday, when it declares its orders and deliveries complete for March. Airbus additionally studies its personal tallies for the month that very same day.
Boeing will possible report that it delivered 30 jets in March, together with 24 of its 737 Max plane, Kahyaoglu mentioned.
The planemaker as of final week had 11 newly constructed “gliders” — an business time period for completed plane which might be missing engines — stashed in and round its manufacturing facility in Everett, Washington, Jefferies analyst Sheila Kahyaoglu mentioned in an April 5 report citing knowledge from Aero Evaluation Companions/AIR.
The cash-flow drag from 11 newly constructed however undelivered 777 freighters would translate to roughly $1.16 billion, in accordance with George Ferguson, analyst with Bloomberg Intelligence. He estimates every plane not delivered represents a money outflow of about $105 million. Boeing’s money use is a rising concern for traders after the planemaker mentioned final month that it expects to burn by $4 billion or extra in the course of the first quarter.
The bottleneck highlights how Boeing’s manufacturing challenges prolong past its cash-cow 737 Max jet. The aerospace large is working to convey its factories and provide chain again to a gentle cadence underneath scrutiny from US regulators following a collection of high quality lapses.
Boeing and the 777 freighter’s engine producer, Normal Electrical Co., declined to debate particular particulars across the supply hiccup.
“Because the aviation business continues to handle by provide chain constraints, we’re working intently with our suppliers and clients on the timing of their deliveries,” Boeing mentioned.
A GE spokesperson mentioned the corporate is coordinating GE90 engine manufacturing and supply schedules with Boeing and airline clients.
Like Boeing and Airbus SE, jet-engine producers are additionally grappling with labor turnover and components shortages which have continued because the pandemic eased. GE executives in early March mentioned about 80% of its supply shortfalls have been tied to constraints at suppliers.
Six 777 freighters have been in-built March however not delivered, Kahyaoglu mentioned, after the planemaker handed over none to clients in the course of the first two months of this 12 months.
Cirium, which tracks plane manufacturing, exhibits that solely certainly one of Boeing’s largest cargo-hauling planes took its first manufacturing facility flight in the course of the quarter. The freighter, ordered by Taiwan’s EVA Air, took off for Taipei on April 8, in accordance with FlightRadar24 knowledge. Different airways ready for the plane embody Air China Cargo, Qatar Airways and Lufthansa Cargo.
Boeing is anticipated to disclose the shortage of 777 deliveries on Tuesday, when it declares its orders and deliveries complete for March. Airbus additionally studies its personal tallies for the month that very same day.
Boeing will possible report that it delivered 30 jets in March, together with 24 of its 737 Max plane, Kahyaoglu mentioned.
