Boeing Set To Cut 787 Dreamliner Production Rate

Boeing plans to announce significant rollbacks in the production of the 787 Dreamliner along with a number of…

Boeing Set To Cut 787 Dreamliner Production Rate

Boeing plans to announce significant rollbacks in the production of the 787 Dreamliner along with a number of job cuts next week. This news comes as the global airline industry is in freefall and demand for aircraft is at an all-time low. The new production cuts will bring down monthly production to just a handful of aircraft. Let’s find out more.

Boeing will reduce 787 productions to roughly half of the current levels. Photo: Jetstar Airways via Wikimedia Commons

More difficult times ahead

Boeing will cut the production of the 787 by roughly 50% percent, from 14 aircraft a month to figures in the single digits. This reduction is lower than Boeing’s earlier planned production cuts to 10 aircraft a month. Boeing was also forced to temporarily close many of its facilities over virus concerns. The move come in response to the coronavirus, which had forced companies to defer aircraft deliveries and cancel orders outright, heavily impacting Boeing.

 

Boeing 787 Dreamliner factory
The new production cuts will likely affect thousands of jobs across the global supply chain. Photo: Getty Images

In an open letter to employees, Boeing CEO David Calhoun speaks about how “it’s important we start adjusting to our new reality now”. The letter also mentions that Boeing will likely take years to recover from this pandemic as the aviation market continues to shrink. The aircraft manufacturer has previously considered axing 10% of the entire workforce. All of this points to a significant overhaul at Boeing, which will likely see thousands of jobs lost and production cut across the board.

Turbulent times for the industry

The 787 is one of Boeing’s most popular widebody aircraft and has racked up over 1500 orders since 2004.  However, with the airline industry expected to lose nearly $314bn in revenues this year, there is little appetite for big aircraft orders. Boeing, and competitor Airbus, have burnt through record levels of cash and are now looking for state support.

Delta Air Lines grounded planes
Airlines across the world have had to ground their fleets. Photo: Getty Images

According to analytics company Cirium, roughly 64% of the global airline fleet has been parked. The number of daily flights has also plummeted, clocking in under 19,000 flights worldwide. These statistics show just how badly the aviation industry has been hit by the coronavirus, and potentially how long the road to recovery will be.

Overall

It is safe to say that Boeing has had its fair share of troubles in the past year, and that was before the coronavirus pandemic. The grounding, and subsequent array of issues, with the 737 MAX has severely damaged the company’s reputation and financial standing. The airline has also seen net negative order months, where it has lost more order than received.

However, it will be the next few months that will be crucial for Boeing. The company faces a number of hurdles: cutting costs, recertification flights for the 737 MAX, and rolling out the 777X. It will have to do this in the backdrop of a global pandemic which is eating away as its reserves and reshaping the entire industry. We will be closely watching Boeing to see how it confronts its newest, and possibly biggest, challenge ever.

What do you think of Boeing’s plans to cut production capacity? How will the company fare in the long run? Let us know in the comments below.

Source : Simple Flying More   

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Air New Zealand Postpones Non-Stop New York Flights By A Year

Air New Zealand has postponed its ambitious Auckland to New York direct flights by a year today, as…

Air New Zealand Postpones Non-Stop New York Flights By A Year

Air New Zealand has postponed its ambitious Auckland to New York direct flights by a year today, as the fallout from the aviation crisis continues to affect the airline. The carrier has also decided to delay the introduction of its Boeing 787-10 fleet, new business class cabin, and exit its fifth freedom Auckland to London via Los Angeles route early.

Air New Zealand has delayed the introduction of its New York route. Photo: Getty Images

What are the details?

Like many airlines right now, Air New Zealand is feeling the heat from the aviation crisis. The carrier has seen less than 5% of business that it would normally see going into the southern hemisphere winter and has even opted to fly what was once daily routes weekly.

But the latest news from the island-based carrier will be the most hurtful for kiwi fans, that the airline has moved to delay its introduction of its stellar Auckland to New York direct route to at least 2021. Even worse, sources inside the airline have suggested that the delays may even extend until 2022 when the market recovers.

Auckland Air New Zealand
Auckland to New York direct. Photo: Google Maps

“It’s deeply disappointing to be in this position, our people have worked tenaciously over the years to build these markets and excitement was growing for our non-stop New York flight.” Nick Judd, Air New Zealand’s Chief Networks, Strategy and Alliances Officer said to Executive Traveler.

“However, the effects of COVID-19 continue to bite; we expect most countries to take a cautious approach to international travel in the next year and we have to be pragmatic.”

The route would connect the two cities over a distance of 14,200km and would be flown by an especially premium heavy configured Boeing 787-9 (very much like direct Singapore to New York flight operated by Singapore Airlines).

Delayed introduction of new aircraft and business class

With a desire to reduce spending over the next year, Air New Zealand has postponed the introduction of its new Boeing 787-10 aircraft until after 2022. These aircraft are slated to take over from the airlines aging Boeing 777s.

But with the borders closed, it is unknown of these Boeing 777s will even take flight again for passenger service until the 787-10s are delivered. What was supposed to a plan for the far future has seen the type possible retired much earlier.

In addition, the Boeing 787-10s and Boeing 777s were planned to carry a new business class. With both aircraft out of the picture for the next year, the new cabin has also been delayed.

Air New Zealand 777
Air New Zealand may retire its Boeing 777 fleet early. Photo: Getty Images

Scrapping fifth freedom flight

Air New Zealand has also decided to call it quits on its fifth freedom flight to London via Los Angeles several months ahead of schedule. The plan was originally to finish the route in October (around the same time as the launch of the New York route). Due to the aviation crisis, the carrier doesn’t see demand returning before that deadline.

“Government travel restrictions will continue for some time and demand for our Los Angeles-London service is unlikely to recover before our planned exit in October” continued Rudd to Executive Traveler. 

What do you think of this? Will you fly on the new service from New York to Auckland? Let us know in the comments.

Source : Simple Flying More   

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