Unicorn

Boeing sounds death knell for 757
(16Oct03 17:25 GMT) Darren Shannon, Washington DC
Boeing is ending production of the beleaguered 757 after the completion of the remaining 12 firm orders for the aircraft.

The US manufacturer's decision was announced only hours after Continental Airlines chairman and CEO told analysts and reporters that the Houston-based carrier had renegotiated its contract for 11 757-300 to five 757s and 6six 737-800s. The 11 757 options once held by Continental had also been eliminated during the contractual negotiations, the airline says.

The manufacturer has 12 firm orders for the 757-200 and -300 variants still on its books.

Boeing it will recognize a $184 million pre-tax charge in its third quarter results, "principally related to termination and shutdown costs at Boeing Commercial Airplanes". Most of the cash expenditures related to the charge will occur in 2005, Boeing adds in a statement.

"This decision reflects the market reality for the 757 as well as the growth in range and seating capacity of our market-leading next-generation 737 family," says Boeing commercial airplanes president and CEO Alan Mulally in a statement. "Over the long term, the increased capabilities of our newest 737s and the exciting potential of the 7E7 will fulfill the market served by the 757."

Boeing will release its third quarter results on 29 October


Unicorn

__________________
It is by will alone I set my mind in motion.
It is by the juice of sapho that thoughts acquire speed,
the lips acquire stains, the stains become a warning.
It is by will alone I set my mind in motion.

PS. Buzz paranoid and proud of it!

Sgt Caribou

Although it is understood that economics are at the root of practically everything these days, it is sad to see the sleek 757 (potentially) at the end of it's rope - although the 737 NG is a decent airframe, to me it will never come close to the grace and presence of the 757. Besides, there are hardly any other airliners flying these days that have a power-to-weight ratio in the range of the 757. Uh-oh - economics again - too large engines on a moderately-sized airframe -

Here's my favourite 757 of all time (a defunct airline on a soon-to-be-defunct airframe), thanks to Gemini for making it in 1/400th!

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Brian

shandaken

The Cubs losing, and that Nancy Pelosi was actually elected to office. I thought Boeing had scored an order for 12 757's from a Chinese Airline last week. Maybe the line will stay open afterall. NWA reported a $49 million profit for the 3rd QTR. Maybe cramming in all those passengers on those 753 is finally paying off.

Unicorn

Shandaken,

The decision was taken after the Chinese airline deal was finalised and signed.

Simply put, those who want the aircraft have it, or can lease them. No one wants new ones, particularly with the 767 / 757 replacing 7E7 waiting in the wings.

A great aircraft in its time, but its time is coming to an end, regrettably :-(

Unicorn

__________________
It is by will alone I set my mind in motion.
It is by the juice of sapho that thoughts acquire speed,
the lips acquire stains, the stains become a warning.
It is by will alone I set my mind in motion.

PS. Buzz paranoid and proud of it!

Eddy Two

Meh. Boeing doesn't need the 757. Their 737NG family are cheaper to buy, cheaper to operate and can fit in to smaller stands, all while carrying a fairly similar number of passengers.