For the primary time in a long time, Boeing’s business airplane enterprise misplaced orders over the course of a whole yr, a stark instance of simply how a lot the 737 Max disaster has harm the corporate.
For all of 2019, Boeing misplaced orders for 87 business airplanes, that means it had extra cancellations than new purchases, the corporate mentioned Tuesday. The ultimate tally included the cancellation of three orders in December when clients modified plans to purchase 787 Dreamliners.
A Boeing spokesman mentioned he wasn’t positive when the corporate final misplaced business aircraft orders for the yr, however “it undoubtedly has not occurred within the final 30 years.”
The damaging quantity is particularly painful in comparison with European rival Airbus, which logged orders for 768 new planes for 2019.
Even with 2019 being a barely down yr for Airbus, its order backlog stays a sturdy 7,482 business airplanes — an quantity equal to virtually 10 years price of manufacturing. Boeing ended 2019 with a business airplane backlog of 5,406 planes.
In December, Boeing did not log any 737 Max orders as airways and plane leasing corporations continued to keep away from the grounded airplane. For the yr, the 737 Max order e-book fell by 182 planes in 2019, with a hefty proportion of these cancellations as a result of chapter of Vietjet Air, a low price service out of Vietnam which went out of enterprise.
By comparability, Airbus racked up orders for 654 A320 plane, its standard single-aisle competitor to the Max.
Boeing’s 737 Max has been grounded since mid-March of final yr. Getting the aircraft again in service is a main focus of recent Boeing CEO Dave Calhoun.
In an e-mail despatched to all Boeing workers on Monday, Calhoun mentioned returning the Max to service is a high precedence. “We’ll get it carried out, and we’ll get it carried out proper,” Calhoun wrote in his e-mail.
When Boeing will see a rebound in orders relies upon largely on when the Max is recertified by the Federal Aviation Administration. Calhoun has not mentioned when he expects that to occur, although many airways imagine there’s a affordable likelihood the newest model of the 737 is again in service this Spring.
Southwest Airlines and American Airlines have the Max returning to their schedules in early April whereas United plans to renew flying the aircraft in early June. Nonetheless, all three airways have shifted their schedules a number of instances since parking their 737 Max planes and readily admit their present plans may change once more.
As a result of Max grounding, Boeing delivered 380 business airplanes in 2019, the bottom stage since 2007. The quantity is lower than half the 786 planes Airbus delivered final yr, a report for the European jet maker.
CNBC’s Meghan Reeder contributed to this report.