Boeing says 118 orders for 777X not agency below accounting guidelines By Reuters

© Reuters. FILE PHOTO: Boeing levels the primary flight of its 777X airplane outdoors Seattle

(Reuters) – Boeing (NYSE:) Co stated on Monday that 118 orders for its 777X widebody airplane below improvement are not seen as agency below accounting guidelines that require it to frequently 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 as a consequence of weaker-than-expected demand for the mannequin. It additionally pushed again its entry into service by a yr 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 best to terminate orders and or substitute orders for different Boeing plane,” the producer stated in a regulatory submitting.

Clients for the 777X embody 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 want 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 as a consequence of its accounting commonplace evaluation, together with the revised schedule for the 777X.

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