Boeing has revealed that it may lose many orders due to geopolitical issues as the company announces that it has removed 141 jets from its backlog.
Boeing said about 90 had been evacuated from those jets due to geopolitical problems caused by Russia’s invasion of Ukraine.
Jet removal from the backlog does not indicate that the order is no longer moving forward but is often used to signal financial problems with a contract.
The deployment of these jets in accounting limbo is probably due to the wide range of sanctions imposed by the United States and its allies on Russia after the country invaded neighboring Ukraine.
Who will lose on the plane?
Boeing did not disclose which customers affected their orders, but Russian-linked airlines likely suffered the most.
The manufacturer has received orders for 86 planes from Russian companies in the last ten years and recently revealed that it had 34 immediate aircraft for the Russian carrier.
These were for Utair and Volga-Dnepr. The airline has seven aircraft for Ukraine’s Skyup Airlines that it has not been able to deliver to date.
Manufacturers will also feel the sting of U.S. sanctions in the form of lost cash because airlines typically pay a significant portion of the price of an aircraft.
Boeing is not the only company to have stopped deliveries from Russia. The airline has recently been forced to cancel two A350 orders for Aeroflot due to sanctions on Russia.
What is the effect of the ban on Russian aviation?
Sanctions by several countries have hampered the supply of new jets to Russia and reduced the existing fleet of carriers in the country.
The country’s air carriers have lost 79 commercial jets, about 10% of their total fleet.
This is mainly due to the ban on international plane leasing companies having to re-occupy their aircraft. This was done with many aircraft located outside Russia at that time.
However, in response, Moscow has “nationalized” aircraft within Russia that belong to air leasing companies, making it unclear how these companies will be able to recover their aircraft.
Western aircraft manufacturers such as Boeing and Airbus cannot ship spare parts to Russian air carriers.
Russia has indicated it will try to service those planes internally. Still, without new deliveries, it is unknown how long Western-made jets will be able to fly in Russia without incident.
Many Russian aircraft will probably not have to leave Russian airspace, as many countries have imposed airspace restrictions on Russian and Belarusian aircraft.
The United States, the European Union, the United Kingdom, Switzerland, and Canada are among the countries that have banned flights to Russia.
The sanctions came after Russia invaded Ukraine in February. Since the offensive began, the UN OHCHR has said at least 1,892 civilians have been killed and 2,558 injured, and the actual number is likely to be much higher.
What do you think about the sanctions imposed on Russia? Let us know in the comments below.