Boeing could end production of its famous 747 aircraft, as the world’s biggest plane maker faces falling orders and pricing pressure, according to a regulatory filing.
“If we are unable to obtain sufficient orders and/or market, production and other risks cannot be mitigated, we could record additional losses that may be material, and it is reasonably possible that we could decide to end production of the 747,” Boeing said.
Boeing said it had cancelled plans to increase production of the 747 to one plane per month from 2019, and stuck to its plan of halving the production rate in September.
“On the 747 programme, we decided to reduce future production expectations and revenue assumptions to account for current and anticipated weakness in the air cargo market,” said the chief executive Dennis Muilenburg.
“Despite the ongoing challenges of the air cargo market, we continue to see the 747 as a unique and significant value creator for our customers over the long term,” Muilenburg said.
Boeing declined to elaborate on the filing or the comments.
The production rate of the 747, which was 1.5 per month in June 2015, dropped to one per month in this month.
The latest version of the 747 is used by Cathay Pacific, Lufthansa and Air China, among others.
Boeing is not alone in facing problems with sales of the biggest passenger jets – Europe’s Airbus has also been hit by weak demand.
Airbus confirmed last week that it plans to approximately halve production of its A380 superjumbo as airlines shun large four-engined jets in favour of smaller two-engined models.
The plan emaker said this month that it would cut the A380 delivery target to 12 a year from 2018, from 27 in 2015, to prevent a glut of unsold planes.
The move raises the possibility that Airbus could revert to losses on the double-decker jet after breaking even for the first time last year, but averts the need to start ordering parts for unsold planes – something it has pledged not to do.
Parts for A380s must be ordered up to two years in advance.
Boeing reported a smaller-than-expected second-quarter loss last week, helped by strong performances in its passenger jet and defence businesses.
It said last week it had won an order for 25 737 Max jets from Malaysia Airlines as the South East Asian nation’s flag carrier expands its fleet for the first time since two fatal air crashes in 2014 prompted the government to take over the company.
The operator also has options for 25 more, with the combined deal valued at $5.5 billion including the options, the airline said. Deliveries from the Chicago-based manufacturer are set to start in 2019.
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Top tips
Create and maintain a strong bond between yourself and your child, through sensitivity, responsiveness, touch, talk and play. “The bond you have with your kids is the blueprint for the relationships they will have later on in life,” says Dr Sarah Rasmi, a psychologist.
Set a good example. Practise what you preach, so if you want to raise kind children, they need to see you being kind and hear you explaining to them what kindness is. So, “narrate your behaviour”.
Praise the positive rather than focusing on the negative. Catch them when they’re being good and acknowledge it.
Show empathy towards your child’s needs as well as your own. Take care of yourself so that you can be calm, loving and respectful, rather than angry and frustrated.
Be open to communication, goal-setting and problem-solving, says Dr Thoraiya Kanafani. “It is important to recognise that there is a fine line between positive parenting and becoming parents who overanalyse their children and provide more emotional context than what is in the child’s emotional development to understand.”
UAE currency: the story behind the money in your pockets
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The rules on fostering in the UAE
A foster couple or family must:
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Children who witnessed blood bath want to help others
Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.
As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.
Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.
“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”
Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.
“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”
Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.
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