Boeing interrupts production of the 777X, new additional cost of $ 1.5 billion for the device


by Eric M. Johnson and Abhijith Ganapavaram

April 27 (Reuters) – Boeing Co announced on Wednesday that it would halt production of the 777X until 2023 due to certification issues delaying its entry into service and weak demand for the jumbo jet, whose bill is increasing by $1.5 billion in additional costs.

The title of the American aircraft manufacturer fell 7% to 155.46 dollars at the start of the session on Wall Street, its lowest level for almost a year and a half, after the publication of a quarterly loss and the revelation of charges of more than $1.2 billion.

The American manufacturer will take advantage of the delay of the 777X to increase the rates of the cargo version of the aircraft from the end of 2023, said Wednesday the general manager David Calhoun. The postponement to 2025 of the delivery of the first copy of the 777X has been confirmed.

On a more optimistic note, Boeing said it has submitted a certification proposal to the US regulator for the 787 Dreamliner program – which should then allow deliveries to resume after the difficulties encountered by this program, which cost some $5.5 billion.

The 787 Dreamliner, along with the 737 MAX, are essential to the financial health of Boeing, which is trying to bounce back from a series of major crises.

The production of 787 has slowed down while the American group carries out checks and remedies a series of structural defects in the program.

During the presentation of its quarterly financial statements, Boeing said it was on track to generate positive cash flow in 2022 as it ramps up its 737 MAX deliveries.

The automaker posted a quarterly loss per share of $2.75 from $1.53 a year earlier based on revenue of $13.99 billion from $15.22 billion a year ago . (Reporting by Eric M. Johnson in Seattle and Abhijith Ganapavaram in Bangalore; French version Dina Kartit, editing by Jean-Michel BĂ©lot)




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