Boeing deliveries plummet amidst strike

Global- Boeing reported a plunge in the delivery of commercial aircrafts, a month into the ongoing strike involving approximately 87% of International Association of Machinists'(IAM) 27,000 members who work for Boeing. The protest has shut down its plane factories and delayed production.

Boeing reported that in the third quarter, 84 737s, 747s, 767s and 777s were delivered to customers. This is a drop from 126 planes delivered in the second quarter this year.

Todd Blecher, spokesman of Boeing said, before the protest on 6 September 2008, Boeing expected to deliver 119 planes in the three months ending Sept. 30. About 30 of the non-deliveries were attributed to IAM members and Aerospace workers' no show, he said.

Media sources earlier reported approximately 87% of IAM's 27,000 members who work for Boeing began their protest on 6 September. The key issues in this ongoing dispute include differences in pay, medical coverage, retirement benefits and job security.

Media sources reported, 10 planes were delivered between Sept. 6 and Sept. 30. This figure more than triples the three planes that were delivered during a 24 days Machinists union strike in 2005. In the earlier strike, the airplane makers were unable to deliver more than two dozen planes on schedule.

On a higher note, Boeing has logged orders for 37 planes during the recent strike, including 9 767-300ERs by All Nippon Airways and 24 planes by unidentified buyers. Although the company has stopped assembling aircraft after the strike began, said Boeing officials

Connie Kelliher, a spokeswoman for the Machinists said, "Obviously, our members are having an impact on Boeing's bottom line and the production lines; they need our members to get back to building airplanes."

Boeing is believed to have received 50%-60% of the purchase price on delivery. With list prices ranging from US$50 million-US$57 million for a 737-600 and US$285.5 million-US$300 million for a 747-8 before discounts, said media sources.

Currently, the company is facing an eight year backlog of deliveries and industry experts have projected losses of up to US$100 million a day in deferred revenue for the duration of the strike.