LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
No Result
View All Result
ADVERTISEMENT

Boeing Might End Production Of The B747 “Queen Of The Skies” – The End Of An Era?

by Sebastian Powell
August 2, 2016
Reading Time: 2 mins read
1

In a recent regulatory filing The Boeing Company revealed that demand for the B747 has decreased so much that the company might decide to discontinue the production of the iconic airliner.

B747 Qantas

First flown commercially in 1970, the 747 held the passenger capacity record for 37 years and became a favorite with travellers who would be sad to see the “Queen of the Skies” go.

The most recent version of the 747, the Boeing 747-800 had just 51 orders for the passenger version and 74 orders for the freighter model. The popularity decreased in times when other models such as the Boeing 777 and the 787 Dreamliner became more popular with the airlines.

ADVERTISEMENT

In a quarterly filing with the U.S Securities and Exchange Commission (see here) Boeing outlines their current position on the 747 program.

Lower-than-expected demand for large commercial passenger and freighter aircraft and slower-than-expected growth of global freight traffic have continued to drive market uncertainties, pricing pressures and fewer orders than anticipated. As a result, during the second quarter of 2016, we canceled previous plans to return to a production rate of 1.0 aircraft per month beginning in 2019, resulting in a reduction in the program accounting quantity from 1,574 to 1,555 aircraft. This reduction in the program accounting quantity, together with lower anticipated revenues from future sales and higher costs associated with producing fewer airplanes, resulted in a reach-forward loss of $1,188 million in the quarter. The adjusted program accounting quantity includes 32 undelivered aircraft, currently scheduled to be produced through 2019.

We previously recognized reach-forward losses of $885 million and $70 million during the second half of 2015 and the first quarter of 2016, respectively, related to our prior decision to reduce the production rate to 0.5 per month and anticipating lower estimated revenue from future sales due to ongoing pricing and market pressures.

We are currently producing at a rate of 1.0 per month, and expect to reduce the rate to 0.5 per month in September 2016. We continue to have a number of completed aircraft in inventory as well as unsold production positions and we remain focused on obtaining additional orders and implementing cost-reduction efforts.

If we are unable to obtain sufficient orders and/or market, production and other risks cannot be mitigated, we could record additional losses that may be material, and it is reasonably possible that we could decide to end production of the 747.

Popularity of another Mega-Aircraft, the Airbus A380, has also contributed to the lower demand of the new 747 models.

The 747 has seen a good number of high profile accidents and bombings since it’s inception. The most notorious ones are the Tenerife Runway Collision, Japan Airlines flight 123 which crashed into a mountain, the PanAm Lockerbie bombing, TWA Flight 800 and Air India 182.

Conclusion

It would be sad to see the B747 disappear butt of course even if the production were to stop completely we would see the Queen of the Skies as the 747 is called for many decades at airports around the world. It’s not uncommon for aircraft to be in service for 20-30 years with proper maintenance. Usually the planes are being handed down from the big airlines to smaller charter companies and airlines for example in Africa.

Cathay Pacific will operate it’s last 747 flight in September 2016 with a special flight Hong Kong – Tokyo/Haneda – Hong Kong. Singapore Airlines operated their last 747 flight in April 2012.

Previous Post

Club Carlson Double & Triple Bonus Points August 1 – October 31, 2016

Next Post

American Airlines SPG Starpoints To AAdvantage Miles 20% Conversion Bonus August 1 – September 14, 2016

Related Articles

U.S. Citizens Will Once Again Be Free To Travel To Cuba After Biden Admin Is Set To Lift Restrictions

U.S. Citizens Will Once Again Be Free To Travel To Cuba After Biden Admin Is Set To Lift Restrictions

Sebastian Powell
May 17, 2022
30

The Biden administration has announced they'd lift restrictions that currently prevent U.S. citizens from most common leisure travel to Cuba,...

Taiwan Plans To Cut Mandatory Quarantine Half For Fully Vaccinated In Mid-May

Taiwan Lowers Mandatory Quarantine To 7 Days From May 9, 2022

John Ollila
May 6, 2022
4

Taiwan, which is going through its first major Covid-19 wave right now, is lowering the quarantine requirement for those entering...

My Positive Experience Using The Abbott BinaxNOW Telehealth Test For U.S. Bound Flights and Cruises

My Positive Experience Using The Abbott BinaxNOW Telehealth Test For U.S. Bound Flights and Cruises

Sebastian Powell
April 24, 2022
36

With many countries having recently abandoned pre-departure testing and the U.S. still holding on to it I found myself confronted...

Upgrade Your Travel IQ

Make the most of your travel with our free and daily newsletter with the latest hotel and airline news and promotions.

We do not sell or share email addresses.

ADVERTISEMENT

Trending

Entering Indonesia Through Bali In May 2022
Featured

Entering Indonesia Through Bali In May 2022

May 22, 2022
Chaos Reigns: What The Heck Is Going On At Canadian Airports As Lines & Passenger Riots Escalate?
Airports

Chaos Reigns: What The Heck Is Going On At Canadian Airports As Lines & Passenger Riots Escalate?

May 23, 2022
Hilton Go Employee And Friends & Family Rate Plans
Hilton Honors

Hilton Go Employee And Friends & Family Rate Plans

July 25, 2021
Thailand Contemplates Scrapping “Thailand Pass” Entirely
Featured

Thailand Pass Changes June 1, 2022 (Gone For Thais)

May 20, 2022
World Of Hyatt Globalist Breakfast Benefit: Reminder That Gratuities Are Always Included!
Featured

World Of Hyatt Globalist Breakfast Benefit: Reminder That Gratuities Are Always Included!

May 22, 2022

Top Categories

  • IHG Rewards Club
  • Hilton Honors
  • Marriott Bonvoy
  • Accor ALL
  • Airfare Of The Day
  • Starwood Preferred Guest (SPG)
  • Hyatt – World of Hyatt
  • American Airlines – AAdvantage
  • Travel News
  • United Airlines – Mileage Plus
ADVERTISEMENT

All Categories

In Case You Missed It

BEGINS TODAY: IHG One Rewards Up To Quadruple Points May 18 – August 31, 2022

BEGINS TODAY: IHG One Rewards Up To Quadruple Points May 18 – August 31, 2022

May 17, 2022
Airfare of the Day [Business Class] SINGAPORE AIRLINES Bangkok to Los Angeles from $2,298

Airfare of the Day [Business Class] SINGAPORE AIRLINES Bangkok to Los Angeles from $2,298

May 20, 2022
Entering Indonesia Through Bali In May 2022

Entering Indonesia Through Bali In May 2022

May 22, 2022
Radisson Hotels Americas 30% Off Premium Room Sale For Stays Through June 30, 2022 (Book May 19)

Radisson Hotels Americas 30% Off Premium Room Sale For Stays Through June 30, 2022 (Book May 19)

May 19, 2022
New York Airport F&B Concessionaires Have Ripped People Off Long Enough, Port Authority Now Applies New Rules

New York Airport F&B Concessionaires Have Ripped People Off Long Enough, Port Authority Now Applies New Rules

May 19, 2022
ADVERTISEMENT

Since 2011, we have been helping millions of visitors like you untangle travel loyalty programs for free upgrades, flights and hotel nights.

Facebook Twitter Youtube Instagram

Site Navigation

  • About LoyaltyLobby
  • News
  • Reviews
  • Airfares
  • Contact Us

Hotel Promotions

  • Accor
  • Hilton
  • IHG Rewards
  • Marriott
  • World of Hyatt

Sign Up For Our Newsletter

Our free daily newsletter sends you the latest information on hotel and airline programs.

We do not share or sell email addresses.

Site & Contents ©2011-2022 LoyaltyLobby.com
Terms of Use & Privacy Policy

  • News
  • Hotel Promotions
    • Accor
    • Best Western
    • Choice
    • Fairmont
    • Hilton
    • IHG Rewards
    • Marriott
    • Radisson Rewards
    • Ritz-Carlton
    • Starwood
    • World of Hyatt
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
No Result
View All Result

© 2011–2021 LoyaltyLobby.com - Site & Contents