The new crown outbreak has hit the world’s civil aviation industry hard, with major aviation divisions taking in new aircraft at a much slower pace, adding to Boeing’s already woes. The U.S. aerospace giant now faces the prospect of an undelivered 787 Dreamliner having nowhere to store after its “problem model” 737 MAX is uncertain.
Boeing is facing a “no place to store” with major airlines halting the receipt of Boeing’s 787 wide-body aircraft, Bloomberg reported on July 18. The runway at the airport near the company’s plants in Washington and South Carolina appears to be full of planes.
In May and June, Boeing delivered only three 787-9s, compared with 36 in the first half of this year, less than half of the 78 aircraft it was in the same period last year.
Bloomberg quoted a prominent American aviation blogger, Ures S. Chess, as saying the total number of 787s parked in two factories was more than 50, double the number of aircraft it currently planned to deliver. Boeing has even begun transporting the parked 787 to a desert parking lot in Victorville, California, according to the blogger.
Earlier, Boeing’s “star product” 737 MAX after two crash, the aircraft was grounded around the world. Because of the sheer number of aircraft, Boeing even hired an employee parking lot to store the extra planes. And now, the 787 is following in the footsteps of the 737 MAX.
Boeing had hoped to increase the capacity of the wide-body aircraft, hoping to improve cash flow distress after the 737 MAX was grounded.
However, the sudden new crown outbreak has interrupted Boeing’s vision. Under the impact of the outbreak, cash-strapped airlines slowed down or canceled aircraft purchases, Boeing’s 787 and 777, as well as Airbus’s A350 and A330neo wide-body aircraft demand has been severely hit.
Richard Aboulafia, an analyst at Thiel Group, said Boeing would now face “overcapacity” after raising its monthly production of 787-9 to 14 last year, setting a production record for wide-body aircraft.
Although Boeing has now lowered its production capacity of 14 aircraft a month to 10 a month, J.P. Morgan analyst Steve Seifman expects Boeing to build more than 100 787 “Dreamliners” this year, a third of which could remain in Boeing’s hands. Boeing “may also have a hard time emptying these stocks next year,” Mr. Seifman said in a July 15 report.
Boeing declined to comment on the exact quantity of the 787 or the planned quantity, citing speculation of “overcapacity”, citing the current period of silence.
“We will continue to closely monitor the business market and stay in close contact with customers around the world to fully understand short- and long-term needs,” Greg Smith, Boeing’s chief financial officer and executive vice president of corporate operations, said in a statement. “