Air Berlin cuts 787 orders by 10 firm, five option aircraft

Air Berlin yesterday announced the cancellation of 10 firm 787 orders worth a combined $1.7 billion at list prices, along with five options, "to account for a change in market conditions and in order to meet. . .specific operative requirements."

The carrier still has 15 Dreamliners and five options remaining from its 2007 order (ATWOnline, July 10, 2007). The cancellations represent the first for the program since TUI Travel eliminated 10 of its 23 787 orders last fall (ATWOnline, Sept. 30, 2009). Boeing sold 25 787s to United Airlines last month but suffered 83 cancellations in 2009 compared to just 24 commitments.

Air Berlin CFO Ulf Huttmeyer stressed that the cancellation was "mutually agreed" with Boeing in a "partnership spirit." He said the airline still "believes in the future of the 787" and that the move "means a significant reduction of its financial obligations due to lower and much more distributed investment profile." AB also deferred the delivery of nine 737s from 2010-11 to 2015. It expects to take its first 787 in November 2015.

CEO Joachim Hunold told ATWOnline last week that the carrier is focusing on its European growth, perhaps a harbinger of a reduction in its long-haul investment (ATWOnline, March 15). Boeing refused comment when asked by this website yesterday in Seattle. AB is scheduled to release its 2009 results on March 25.