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."
Although Trump’s geopolitics policy for Europe remains unclear, defence analysts from the US and Europe predict how his incoming administration would attempt to handle critical issues on the continent.
The UK budget announced in Parliament on 30 October was the first by a Labour government in 14 years which has also launched a review into defence procurement programmes.
The Australian government has placed a focus on Guided Weapons and Explosive Ordnance (GWEO) which has included the purchase of additional long-range rocket systems and investments in local production of missiles.
The UK budget announced in Parliament on 30 October is the first by a Labour government in 14 years. While it sees a boost in defence spending, this comes in the face of fiscal challenges and the effects of inflation.
The changes are intended to meet greater need and deliver more value for money.
BAE Systems, Booz Allen Hamilton and Lockheed Martin have been betting on new facilities and innovative manufacturing technologies to speed up the development of new solutions.
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