Boeing’s 777 ‘gliders’ signal more cash woes

Boeing likely didn’t deliver any 777 freighters during Q1, adding to its cash woes at a time when 737 Max handovers are sluggish amid heightened government scrutiny. The planemaker as of last week had 11 newly built “gliders” — an industry term for finished aircraft that are lacking engines — stashed in and around its factory in Everett, Washington, Jefferies analyst Sheila Kahyaoglu said in an April 5 report citing data from Aero Analysis Partners/AIR. The cash-flow drag from 11 newly built but undelivered 777 freighters would translate to roughly $1.16b, according to George Ferguson, analyst with Bloomberg Intelligence. He estimates each aircraft not delivered represents a cash outflow of about $105m. Boeing’s cash use is a growing concern for investors after the planemaker said last month that it expects to burn through $4b or more during Q1. The bottleneck highlights how Boeing’s manufacturing challenges extend beyond its cash-cow 737 Max jet. The aerospace giant is working to bring its factories and supply chain back to a steady cadence under scrutiny from US regulators following a series of quality lapses. Boeing and the 777 freighter’s engine manufacturer, General Electric Co., declined to discuss specific details around the delivery hiccup. “As the aviation industry continues to manage through supply chain constraints, we are working closely with our suppliers and customers on the timing of their deliveries,” Boeing said. A GE spokesperson said the company is coordinating GE90 engine production and delivery schedules with Boeing and airline customers. <br/>