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Boeing says 118 orders for 777X no longer firm under accounting rules

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(Reuters) - Boeing Co said on Monday that 118 orders for its 777X widebody plane under development are no longer seen as firm under accounting rules that require it to regularly assess their viability, leaving it with 191 solid orders for the model. Boeing last week announced a $6.5 billion charge on the 777X in part due to weaker-than-expected demand for the model. It also pushed back its entry into service by a year to late 2023 in anticipation of a longer, costlier certification process. (www.reuters.com) Daha Fazlası...

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k1121j
k1121j 11
Perhaps management should not get the bonuses just sayin. But looks like they are just going to run the company in to the ground and fill their pockets while doing it?
ghstark
Greg S 9
I'll blame the MAX disaster on them but not this. Nobody could have predicted the Covid-19 pandemic and it's subsequent crushing of the airline industry. Although I admit I have no idea what accounting shenanigans might be going on here. Why take a "charge" on aircraft that haven't been built yet? Unless they booked the revenue based on the order rather than actual payment.
ssobol
Stefan Sobol 6
Some of the softness in the 777X sales could be fall out from the MAX problems. I believe that Boeing lost a lot of trust in the marketplace and maybe some customers just aren't as comfortable with Boeing products as they used to be.
TiredTom
Tom Bruce 2
big big planes look like things of the past... 748, 380, 77X.... too many "point to point" routes are making
big international hubs obsolete... hate to see this for Boeing .... but seem to be doing it to themselves..
737MAX, KC46... now 77X
SkyAware123
SkyAware123 1
This will disrupt a lot for a while. They either cut back drastically and then get caught when airlines revive quickly (which I think will happen later this year or next year if vaccinations turn out to be effective and no new strains ruin it) OR they could be in a slump for years to come. What happened to all the stories about airlines getting rid of their older planes even more quickly to switch to new and more efficient planes? All those 380's going to the scrapper? Thought the 777x was to replace those?
EricRobinson
Boeing is a great company. However, we have to ask ourselves what is “too large” and what happens if Boeing were to fail? A government bailout would be absolutely necessary because Boeing is required to maintain our national security and is the last remaining manufacture of large commercial jets by Americans. A unified “Industrial Policy” must be considered or risk losing our competitive edge. Remember Bell Telephone.

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