Airlines Cancel More Orders from Boeing Amid Recession

Summary: Boeing, the world’s largest aircraft manufacturer, has experienced massive losses as airlines from around the world cancel its orders amid economic recession. And according to experts, this trend will worsen as more passengers will cancel their flights and will travel less to save money during the ongoing financial crisis.

Boeing, the world’s largest aircraft manufacturer, has experienced massive losses as airlines from around the world continue to cancel its orders amid recession.

Recently, a Russian airline cancelled its 15 Dreamliner aircrafts as passengers from around the world postpone their flights. Meanwhile, a company from Dubai also withdrew its order of an aircraft.

Last year, the company also had to cancel eight orders and another 110 already-made planes had to be deferred as airlines backed out from purchasing new crafts.

According to experts, the declining number of flight passengers is expected as people will travel less to save money in this time of financial crisis. With this trend, the aircraft giant should expect that more companies and airlines will cancel its orders as the world economy nowadays is highly volatile.

In a conference, Boeing chief financial officer James Bell said the company is considering to lower its production rates next year as demand for aircrafts continue to decline. Meanwhile, this strategy can also help the company to cut costs as fewer planes means fewer people to employ.

Earlier reports said the aircraft giant announced its plan to lay off nearly 10,000 before the year ends, with half of the workforce reduction coming from Puget Sound area.