(Reuters) – Boeing (NYSE:) Co stated on Monday that 118 orders for its 777X widebody aircraft underneath growth are not seen as agency underneath accounting guidelines that require it to repeatedly assess their viability, leaving it with 191 stable orders for the mannequin.
Boeing final week introduced a $6.5 billion cost on the 777X partly attributable to weaker-than-expected demand for the mannequin. It additionally pushed again its entry into service by a 12 months to late 2023 in anticipation of an extended, costlier certification course of.
“Delays on the 737 MAX and 777X packages have resulted in, and should proceed to lead to, clients having the appropriate to terminate orders and or substitute orders for different Boeing plane,” the producer stated in a regulatory submitting.
Clients for the 777X embrace Emirates, Qatar Airways, Etihad Airways, British Airways, Cathay Pacific Airways (OTC:) Ltd, Singapore Airways (OTC:) Ltd, ANA Holdings Inc and Lufthansa.
Boeing lists 350 orders on its web site, though some clients have indicated they wish to cut back their orders or push again supply dates as they grapple with a plunge in worldwide journey demand as a result of coronavirus pandemic.
On the finish of 2019, Boeing had listed 309 of the 777X orders as agency, that means it was assured clients nonetheless deliberate to purchase that many planes and will finance their buy.
Boeing Chief Monetary Officer Greg Smith stated final week on an earnings name that the corporate’s order backlog had fallen in the course of the fourth quarter of 2020 attributable to its accounting commonplace evaluation, together with the revised schedule for the 777X.
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