Boeing has confirmed further production cuts for their flagship 787 Dreamliner, lowering the production of the 787 from 12 to 10 a month, starting in 2021.
The company further will further reduce production amount, citing “current environment” and “near-term market outlook”. Since 2011, there were more Dreamliner rollouts than orders for the type. The only exception was 2013 when there were 177 orders and 65 deliveries. However, after a production increase to 10 airliners a month, sales were lower than expected.
The production decrease will last until 2023 when Boeing will revert to producing 12 aircraft a month. “China is a big deal and a big play on these production rates,” said Greg Smith, the company’s chief financial officer. The on-going trade war between the US and China has made a great impact on aircraft sales for Boeing. The signing of the Phase One Trade Agreement promised to increase American goods and service imports to China by $200 billion over the next two years. It hasn’t been disclosed whether Boeing will receive a slice from that $200 billion cake, as the company’s representatives haven’t confirmed or denied the rumors about $78 billion dedicated to manufacturer’s aircraft.
The 787 is a revolutionary aircraft created by Boeing. The aircraft has accumulated 1,485 net orders of which 939 have already been delivered.