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Air Berlin cuts firm 787 orders by 10
Air Berlin has agreed with Boeing a plan to revise its order book to account for a change in market conditions and in order to meet Air Berlin’s specific operative requirements.
The pair have agreed on a reduction of the number of firm 787 orders from 25 to 15 and to reduce the number of 787 options from 10 to 5. The 10 aircraft order reduction has a current list price of approximately $1.7 billion.
The agreement also provides that the delivery of nine Boeing 737s will be rescheduled to 2015. These aircraft were originally scheduled for delivery in 2010 or 2011.
Ulf Hüttmeyer, Air Berlin’s CFO, remarked, “With a partnership spirit we have mutually agreed with Boeing to adjust the Air Berlin order book to meet Air Berlin’s operational requirements and the market conditions. The agreement with Boeing demonstrates that Air Berlin believes in the future of the 787 aircraft. We look forward to the first delivery in November 2015. For Air Berlin, the agreement means a significant reduction of its financial obligations due to lower and much more distributed investment profile.”
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