Boeing to cut 787 production as trade war bites

Boeing has announced it plans to cut monthly production of its popular Boeing 787 Dreamliner from 14 to 12 next year as the global trade environment slows orders. The manufacturer revealed the cut in third-quarter results that saw its commercial airplanes unit post a $US40 million loss for the quarter as a result of the 737 MAX crisis. The loss compared to a $US2 billion profit for the same quarter a year ago. Revenues for the unit were down 41 percent, from $US14.1 billion to $US8.2 billion. READ: MAX crisis sees Boeing oust the head of commercial airplanes The MAX grounding also saw the number of aircraft delivered during the latest quarter slump 67 percent to 62 compared to 190 for the same period in 2018. Boeing said it planned to introduce the 787 production cut in late 2020 “given the current trade environment”. Like many companies, Boeing has been affected by US President Donald Trump's trade war and has not received a 787 order from China in recent times. But Boeing chief executive Dennis Muilenburg said the safe return of the MAX remained the company's top priority and it was making steady progress. The company is still assuming it will get US regulatory approval for software and training updates developed after two fatal MAX accidents in the fourth quarter and says it will gradually increase the 737 production rate from 42 a month to 57 by late 2020. Even if that happens, US carriers have indicated they don't expect to get the planes back into service until the beginning of 2020. The head for the European regulator has also indicated his agency will conduct its own review and he doesn't expect approval until early next year. Also delayed is the planned entry into to service of the Boeing 777X and said in its results the widebody jet was progressing through pre-flight testing and remained on track for a first flight early next year. "The company is now targeting early 2021 for first delivery of the 777X,'' it said. Boeing said its commercial aircraft unit booked net orders worth $US5 billion during the quarter, including  20 787s  for Korean Air, eight 787s for Air New Zealand, and six 777 freighters for China Airlines.