{"id":78838,"date":"2024-05-28T00:00:00","date_gmt":"2024-05-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/05\/28\/what-boeings-recent-bout-of-bad-press-means-for-the-order-books\/"},"modified":"2024-05-28T00:00:00","modified_gmt":"2024-05-28T00:00:00","slug":"what-boeings-recent-bout-of-bad-press-means-for-the-order-books","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/05\/28\/what-boeings-recent-bout-of-bad-press-means-for-the-order-books\/","title":{"rendered":"What Boeing\u2019s recent bout of bad press means for the order books"},"content":{"rendered":"

Between losses, production delays, fines, and a possible lawsuit, <\/strong>Boeing<\/strong> has faced an <\/strong>onslaught of bad press sparked by an <\/strong>Alaska Airlines incident<\/a><\/strong> in January.<\/strong> Boeing's Commercial Market Outlook estimates there are up to 3k aircraft<\/a> set to be delivered regionally between 2023 and 2042, but with concern growing and delivery times lengthening, regional aviation players are exploring options.<\/p>\n

A quick look at Boeing\u2019s regional orderbook:<\/strong> Riyadh-based, PIF-owned airline Riyadh Air purchased 39 787-9s<\/a>, with options for an additional 33 787-9s last year at the 2023 Paris Air Show and is looking to launch next year with an all Boeing fleet. Emirates also ordered 90 of Boeing's largest aircraft type, the 777X, and an additional five 787s at a value of USD 52 bn<\/a>, in November 2023, despite knowing that Boeing had been already struggling<\/a> delivery delays. Royal Air Maroc (RAM) has also issued tenders for new aircraft<\/a>, as it looks to purchase some 200 aircraft within the coming ten years. <\/p>\n

There\u2019s a struggle to meet orders:<\/strong> Boeing and rival European aircraft maker Airbus are struggling to meet the ramp up in demand from regional carriers, causing frustration for some as delays stretch on. Emirates recently warned the aircraft maker to \u201ckeep its promise\u201d<\/a> on deliveries of long-awaited 777X aircraft, after hinting at a need for a shakeup<\/a> in the firm\u2019s leadership earlier this year. Etihad CEO Anotonoaldo Neves added that his company expects compensation for delayed deliveries but that they do not make up for lost ticket sales<\/a>, citing surging demand for air travel and a shortage of capacity.<\/p>\n

Upcoming giant Riyadh Air struck a more conciliatory note:<\/strong> The carrier is \u201cvery conscious\u201d of delays to Boeing and Airbus orders, Riyadh Air CEO Tony Douglas told Bloomberg<\/a>. Recent changes in Boeing\u2019s management are expected to overhaul the company, Douglas said, adding that the new leadership \u201chas to stay absolutely focused and get back to basics.\u201d Riyadh Air is expected to make follow up orders to scale up its size, Douglas also said, without indicating whether the orders will go to Boeing, or Airbus, or a mix of the two.<\/p>\n

Carriers are looking to play the delay to their advantage: <\/strong>Airlines are looking to leverage the delivery delays to get disc. on orders and to pressure the company for reimbursements, Reuters<\/a> reported. However, carriers looking to switch out for Airbus orders will likely have a hard time of it as Airbus\u2019 order book is full through 2030, the newswire said. <\/p>\n

Airbus may benefit in the long-term:<\/strong> Despite it being difficult for airlines to replace their aircraft overnight, the long-term trend is clearly in favor of Airbus, CNN<\/a> reported. \u201cThe declining demand of plane orders by airlines for Boeing aircrafts might just get directed towards Airbus instead, and doesn\u2019t just disappear,\u201d chief economist at Revelio Labs, Lisa Simon, told CNN. Airbus delivered some 735 aircraft<\/a> in 2023, far ahead of Boeing\u2019s 480, solidifying its title as the world\u2019s largest plane manufacturer for the fifth straight year, and casting doubt on whether the commercial aircraft market is still characterized by the long-running Boeing-Airbus duopoly.<\/p>\n

What\u2019s more:<\/strong> KSA national carrier Saudia made the country\u2019s largest-ever aircraft<\/a> order for 105 narrow-bodies from Airbus worth USD 19 bn, which it will begin to receive beginning 2026. The landmark order could have been larger, but Airbus cannot handle any more deliveries before 2032. <\/p>\n","protected":false},"excerpt":{"rendered":"

The aircraft maker is cued up to deliver up to 3k aircraft regionally between 2023 and 2042<\/p>\n","protected":false},"author":1,"featured_media":78839,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[177],"tags":[264,145,146,208,31,129],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-78838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aviation","tag-airbus","tag-aviation","tag-boeing","tag-emirates-airlines","tag-saudi-arabia","tag-uae","wpautop","entry"],"acf":{"mongo_id":"a0cea0cf-ea07-461e-b2e5-2f0f2095724f","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/3\/1846.jpg","photo_position":"above","homepage_title":"","full_issue_title":"What Boeing\u2019s recent bout of bad press means for the order books","related_issue":[78831],"teaser":"The aircraft maker is cued up to deliver up to 3k aircraft regionally between 2023 and 2042","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/5\/.dcd56608-883e-457d-b5d8-40b53435da5a.mp3"},"yoast_head":"\nWhat Boeing\u2019s recent bout of bad press means for the order books - 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