787 Deferred Production Cost drop by $1.06 bn as Boeing prioritizes 787 sales.

Boeing reported its 2nd quarter financial performance and it seems that things are a little bleak.

First off the continued issue with the 737 MAX has Boeing considering slowing down or even completely stopping production on the aircraft until it is re-certified and back in the air.  They've been producing the aircraft and then parking them all over the Pacific Northwest.  The higher margins from the 787 program has helped partially offset the 737 MAX financial hit.

They also announced that the 777X first flight has been pushed to early 2020 from late 2019 due to the continued GE9X issues.  There is a huge amount of schedule risk in that program.

Not to mention that Airbus seems to be getting the better of them in the NMA/A321 market where Boeing has yet to launch their new widebody aircraft.

The 787 program is a bright spot as Boeing did report that the deferred production cost dropped by over $1 bn to $20.969 bn. Last quarter the deferred production cost was around $22.029 bn. The main issue for Boeing is getting more orders for the 787.  Currently the remaining backlog of 787s is 581 airplanes which is about 3.5 years of production at the current rate.  The word out on the Street is that Boeing is willing to trade away some 777X orders with Emirates in exchange for the 40 787-10 that they signed an LoI for in 2017.  Boeing did note that recent orders from Air New Zealand, Korean Air and Air Lease Corp. has bolstered the 787 skyline but they do need to make a more aggressive push for more orders or they would have to look to cutting production.  They are aiming at the widebody replacement market as a source of new orders down the road.

Farnborough Air Show 2016 - Day 1

Here's a summary of today's order action from Farnborough

Boeing

Donghai Airlines - 25 x 737 Max 8, 5 x 787-9 (MoU)

Standard Chartered - 10 x 737-800 (Firm)

Xiamen Airlines - 30 x 737 Max 200 (MoU)

Airbus

ALC - 3 x A350-900, 1 x A321 (Firm)
Virgin Atlantic Airways - 8 x A350-1000 (Firm)
Jetstar Pacific - 10 x A320 (MoU)
Air Cote D'Ivoire - 1 x A320neo (Firm)
Arkia - 4 x A330-900neo (Firm)

COMAC
China Aircraft Leasing - 60 x ARJ21 (MoU)
AVIC - 30 x ARJ21 (MoU)

Embraer
Arkia 6 x E195-E2 (MoU)
Kalstar 5 x  E195-E2 (Firm)
Nordic Aviation Capital 4 x E190-E2 (Firm)
Japan Air Lines 1 x E190 (Firm)

Mitsubishi

Rockton - 10 x MRJ90 (MoU)

Did AMR order more 777-300ERs?

Today AMR detailed the breakdown of their huge A320 order (they're converting the order of 130 current generation A320s into a mix of current gen A319 and A321).
AMR's Press Release
However what is interesting comes at the end of press release. In the last paragraph, AMR states that they have orders for 15 777s that are to be delivered between 2012 and 2016. Looking at Boeing's O&D web site shows that AMR has orders for 7 777-300ER as well and 6 777-200ERs (left over from the order placed in the 1990s). I don't think that these 6 777-200ERs will ever be delivered to AMR.

Interestingly enough Boeing booked an unidentified order last week for 8 777s the version is unknown until Boeing releases it's orders for the month in early December. However there is some confusion if this 777 order is for American Airlines or Singapore Airplanes which had announced an order for 8 777-300ERs. Boeing did book another order for 8 777-300ERs also in September, 2011 so it is possible one of these orders is for Singapore Airlines and the other is for American.