Boeing Undeterred by 747 Order Cancellations

Despite order cancellation, Boeing committed to keep 747s flying out of their factory at current production rate.

Boeing announced their plans to continue building the 747 jumbo jet at their current rate, with no indications of slowing down. Reuters reports the announcement comes as a Japanese freight airline cancelled four orders for 747 freight aircraft to start the month.

With the cancellation, Boeing now reports they have four gross orders for the double-deck aircraft in 2015, with 25 previous orders yet to be fulfilled. Even though no new orders have been secured for the aircraft, Boeing spokesperson Doug Alder told Reuters the cancellation would have “no impact on production rates.”

The move comes as airlines and manufacturers begin to question the ultimate viability of super-sized aircraft in the skies. In June, the Seattle-based aircraft manufacturer reported they would begin to taper down aircraft production to approximately 1.3 747 aircraft per month starting in September, with ultimate plans to reduce to one 747 completion monthly by March 2016. Rival manufacturer Airbus is under similar scrutiny, as the French airframe builder was reported to be considering the end of the A380 program last year.

The demand reduction could also become a financial burden for Boeing as well. Reuters reports the American manufacturer is aware of the potential accounting charge of over $1 billion, flagging the situation in quarterly financial reports and filings.

However, not all hope is lost for the aircraft that ushered in the jet age. At the Paris Air Show, Reuters reports Boeing received a commitment to order 25 747 freight aircraft from a Russian cargo airline. In addition, the aerospace company has identified over 140 freight aircraft which will need to be replaced with a potential demand for over 500 new jumbo jets by 2035.

[Photo: Boeing]