Boeing and Azerbaijan Airlines have jointly announced an order for two single-aisle 737s and two twin-aisle, Boeing 767-300ER extended range planes. The order is worth US$450 Mn but one of the 767's replaces one of the three 787 Dreamliners Azerbaijan ordered in February 2007.
This is the first order cancellation for a 787 Dreamliner which is now set for its first test flight in the fourth quarter and first delivery in the third quarter of 2009, 15 months behind the original schedule.
The 767 could be used as the basic airframe Boeing will use in its bid to win a $35 billion aerial refuelling contract from the US Air Force already awarded once over to Northrop Grumman / EADS MRTT but now subject to review as government auditors found errors in the award of the contract (but not the planes). See Hansard for Lord Jones interesting question in House of Lords to Government about this contract 1st July 2008
Airlines worldwide, are due scale back operations in the face of high fuel prices and lower economic growth expectations.
UAL Corp , parent of United Airlines, are set to cancel an$2.2 billion for the purchase of 42 A319 and A320 single-aisle aircraft and so forfeiting a $91 million dollar deposit.
Reuters reports that analysts have said Airbus, and Boeing could lose a quarter or more of the plane orders on their books as carriers cut back growth plans made in happier times.
According to the Airbus website they have had 43 order cancellations so far this year, some represent shifts to a new version of its A350 model. It said earlier this year that U.S. budget JetBlue Airways Corp will defer some deliveries.
Boeing has had no cancellations this year, but has said Southwest Airlines Co and AirTran Holdings Inc have deferred some orders.
Despite this Boeing shares are forging ahead . Is this due to our comments on their lowest ever price on the 5th August Boeing share prices jumps - again - closes tdoay US$ 65.50 up 70 cents = 1.08% today ? US$5.97 up since opening on the 5th = rise of 9.6% on the week.
Does somebody know something about that tanker order ?
Now here's a funny thing - Shares in Cobham plc, (Interim results - profits up 24% out today) the Dorset based firm of whom 5 of the 8 Directors have been awarded CBE's - who make bits of kit for aerial refuelling (who are doing quite nicely thank you), have done well (very well this week) just compare them with Boeing. .....
Word to the wise - United Parcel Service, Inc. (UPS) mentioned here - up nearly 5% today. Readers will remember (Friday, July 11, 2008 Airline tickets prices to be cut dramatically as result of new Boeing Nextgen Tailored Arrivals : due to fuel saving efficiencies and yesterday John McCain - not delivering the goods for DHL - but UPS benefits .