Boeing 787 Dreamliner Order Cancelled by S7

It looks like airlines around the world are starting to have enough of the recent delays from aircraft manufacturers while they are developing new airliners. The Airbus A380 was late by 1.5 years, Sukhoi’s SuperJet is also well behind schedule, not to mention Boeing’s troubled 787 Dreamliner, latest hit by the machinist’s/assembly workers’ 2 month strike last fall.

s7_logo_wideS7 Airlines, Russia’s biggest domestic airline is the first airline to have confirmed the cancellation of its full order for 15 Boeing 787 Dreamliners. As widely known, Boeing’s promising new Dreamliner has not flown yet, and is more than 2 years behind the original schedule. The first plane should have been delivered to All Nippon Airways last year, before the 2008 Beijing Olympics, but the plane has yet to take to the skies for the first ime. S7 is the first carrier to actually terminate a major deal for Boeing’s next generation widebody airplane.

The May 2007 order placed for 15 787s, due to be delivered in 2014, was worth about USD$2.4 billion at list prices and also included 10 purchase rights. The cancellation is a blow for Boeing, as other customers standing in line for the Dreamliner and simply acknowledging each news about further delays (the manufacturer has delayed the 787 program five (!) times already) may get powered up and decide to also cancel their orders. The current financial crisis is hitting practically all airlines around the world really bad, thus cost-cutting is vital for them. And Boeing running so much behind its schedule and not fulfilling its contractual duties, is in a bad position to protect and save these deals, while airlines may see 787 Dreamliner order cancellations as an effective way of saving some money in these hard times.


The order is gone, but we may still see the Boeing 787 Dreamliner in S7 livery

The airline (formerly known as Siberia Airlines), did not offer a reason for the cancellation but said in a statement that it “retains interest in using the Dreamliner and at the moment is looking into receiving the planes under a leasing scheme at an earlier date, for which it is in negotiations with several leasing companies.

Boeing’s 787 backlog now stands at 895 from 58 customers. Overall, it has taken 914 gross orders for the Dreamliner. In addition to the S7 cancellation, Xiamen Airlines in 2006 replaced an order for three 787s with an order for seven 737-800s and Azerbaijan Airlines replaced one 787 with one 767-300ER last summer.

Boeing has originally planned to deliver around 100 787s in 2009…

by balint01


5 Responses to “Boeing 787 Dreamliner Order Cancelled by S7”

  1. 1 Khalil March 3, 2009 at 12:43 am

    This deals cancellation will effect Boeings’ image and credibility and may push airlines to find alternatives, in other words, Airbus will take this advantage

  2. 2 balint01 March 5, 2009 at 10:09 am

    Since S7’s cancellation, a single VIP version of the Dreamliner was cancelled, followed by the largest cancellation of the type so far: 16 by Dubai lessor LCAL. This means a total of 32 Boeing 787 Dreamliners has been cancelled this year so far.

    According to the latest news, the fresly merged Delta-Northwest Airlines is also re-considering its originally Northwest order for 18 aircraft – as those have been moved from “firm” orders to the “options” category in the airlines’ latest annual report published this week.

  3. 3 balint01 May 12, 2009 at 4:31 pm

    The Royal Bank of Scotland’s RBS Aviation Capital subsidiary is the next customer that canceled its order for 25 787s.

    According to reports this 787 cancellation was not a reflection of either the bank’s or the market’s confidence in the delayed aircraft program but rather an attempt by RBS to “limit their exposure” to noncore investments.

    Boeing has had orders for 57 787s canceled so far and its order book for the year to date (2009) now stands at -49 including the eight firmed up by Gulf Air.

    based on ATWOnline

  4. 4 balint01 June 29, 2009 at 9:27 am

    Qantas is the latest company to join the club of Dreamliner Canceling airlines, with canceling 15 of its firm order for 65 787’s and defering another 15 of the type. Both the airline and Boeing claim this is due to the harsh and changed industry environment and has nothing to do with the sixth delay of the Dreamliner program – which was announced only last week.

  5. 5 skeptic July 23, 2009 at 3:01 am

    The 787 will never get off the ground. The lawyers can’t find the weasel words to get out of the liability for its potential crashes.
    We really won’t get out of this mess until we go back to the stone age and corporate lawyers have to become real chiselers again (on stone tablets).

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