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Demand for Boeing’s 737 Slows as Planes Remain Grounded | Demand for Boeing’s 737 Slows as Planes Remain Grounded |
(about 1 hour later) | |
Boeing announced on Tuesday that it received far fewer orders for its 737 jets in the first quarter of 2019 than it recorded in the same period last year. | Boeing announced on Tuesday that it received far fewer orders for its 737 jets in the first quarter of 2019 than it recorded in the same period last year. |
There were 32 new orders for the jet in the first three months of this year, compared with 122 a year earlier, the company said. The 737 Max, which is Boeing’s best-selling plane, has been grounded since last month, when it was involved in a deadly crash for the second time in five months. | There were 32 new orders for the jet in the first three months of this year, compared with 122 a year earlier, the company said. The 737 Max, which is Boeing’s best-selling plane, has been grounded since last month, when it was involved in a deadly crash for the second time in five months. |
In October, Lion Air Flight 610 plunged into the Java Sea shortly after takeoff, killing all 189 people onboard. In March, Ethiopian Airlines Flight 302 crashed into the ground a few minutes after departing Addis Ababa, resulting in the deaths of all 157 people on board. | In October, Lion Air Flight 610 plunged into the Java Sea shortly after takeoff, killing all 189 people onboard. In March, Ethiopian Airlines Flight 302 crashed into the ground a few minutes after departing Addis Ababa, resulting in the deaths of all 157 people on board. |
The 737 Max remains grounded by regulators around the world as Boeing works on a software fix for a flight control system that is suspected of contributing to both crashes. Some airlines have even announced that they would cancel their 737 Max orders over concerns about the plane’s safety. | The 737 Max remains grounded by regulators around the world as Boeing works on a software fix for a flight control system that is suspected of contributing to both crashes. Some airlines have even announced that they would cancel their 737 Max orders over concerns about the plane’s safety. |
[Read more about the two Max crashes and Boeing’s response.] | [Read more about the two Max crashes and Boeing’s response.] |
Analysts say the drop-off in orders is less a bad sign for Boeing than a larger indication of market conditions in the aviation industry. | Analysts say the drop-off in orders is less a bad sign for Boeing than a larger indication of market conditions in the aviation industry. |
“It certainly wouldn’t be surprising that people aren’t rushing to sign orders for Maxes right now, but I don’t think that speaks to the ongoing viability or interest in Boeing’s product,” said Samuel Engel, a senior vice president and head of the aviation practice at the consulting firm ICF. He added that Airbus had even fewer orders over all than Boeing in the first quarter. | |
“One quarter can be explained,” said Richard Aboulafia, vice president for analysis at the Teal Group, a consulting firm in Fairfax, Va. | “One quarter can be explained,” said Richard Aboulafia, vice president for analysis at the Teal Group, a consulting firm in Fairfax, Va. |
He said both Airbus and Boeing had extreme order backlogs. | He said both Airbus and Boeing had extreme order backlogs. |
“When you’ve got 11,000 upfront orders, first of all, that’s never been seen in the history of this industry,” Mr. Aboulafia said. “This becomes a game of backlog preservation and management, rather than bringing in new orders.” | “When you’ve got 11,000 upfront orders, first of all, that’s never been seen in the history of this industry,” Mr. Aboulafia said. “This becomes a game of backlog preservation and management, rather than bringing in new orders.” |
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