Delays force Lcal to cancel Boeing Dreamliner orders

05 February 2009
Lcal has cancelled 16 of the 21 Boeing 787 Dreamliners it has on order, in the face of continued delays to the aircraft.

The Dubai-based leasing group has built its business model solely around Boeing’s new flagship aircraft but, with production of the aircraft now three years behind schedule, Lcal is still unable to launch its operations.

“We are still considering our relationship with Boeing and looking at where the company goes next, though we are not planning to do anything with Airbus,” says Stephen Clarke, Lcal’s president and chief operating officer.

“Our revenue streams have been pushed back three years along with the aircraft, and Boeing still cannot give us confirmation of our first delivery date. We have got to carefully consider our position.”

Lcal’s first plane was due to arrive this September with the company planning to take advantage of the huge demand for the aircraft by leasing its planes to carriers with later delivery slots. However, a series of delays in the plane’s production schedule has ruined that strategy.

The fuel-efficient 787 is the most popular model in aviation history, with over 900 on order worldwide.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications