Boeing offers major discounts amid worst annual orders in decades

Boeing 737 MAX rear
Boeing 737 MAX rear

Boeing is offering bulk-buy discounts to airlines to hold onto 737 MAX orders after the aircraft’s grounding last year, according to industry experts.

Airlines rarely pay the full price, but the MAX crisis has led to much greater price cuts than previously offered by Boeing.

Alex Macheras, an airline analyst, said to the Telegraph: “Boeing’s worried and so very generous incentives and substantial discounts are being offered.

“Airline executives in South America and South East Asia have told me they’ve been offered deals on small sales that are normally only given on really big orders, ones in the hundreds.”

This comes as Boeing reports its worst annual orders in at least two decades and plane deliveries slumped to an 11-year low.

The company remains in crisis since the grounding of its best-selling 737 MAX after two fatal crashes.

The amount of net orders in 2017, after cancellations are taken into account, came to just 54 planes. Last year the aircraft maker recorded 893. Plane deliveries fell by 53% to 380, the lowest since 2007.

The new CEO of Boeing, David Calhoun, assumed his role on Monday amid the escalating 737 MAX crisis. He shared an email with all employees outlining his priorities for the year ahead, including getting the MAX back to service, rebuild trust and maintain production health.

“I’m honoured to lead the talented people of Boeing as we face our challenges. Working together, we will strengthen our safety culture, improve transparency and rebuild trust with our customers, regulators, suppliers and the flying public,” Calhoun said. “With the strength of our team, I’m confident in the future of Boeing, including the 737 MAX.”

www.boeing.com

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