Boeing to cut 10,000 jobs globally

Dubai: US planemaker the Boeing Company on Wednesday said it plans to cut 10,000 jobs or 6 per cent of its global workforce this year, after disclosing a loss of $56 million (Dh205.7 million), or $0.08 per share, due to a strike.

"We are indeed facing one of the most difficult financial situations in our history," Jim McNerney, Boeing's chairman, president, and chief executive told the media in a conference call in which Gulf News joined last evening.

"Business is not as usual," he said while announcing the results. "We must continue to find ways to tackle the uncertainty."

For full year 2008, net income fell 34 per cent to $2.7 billion, while earnings per share (EPS) declined to $3.71 per share, and revenue fell eight per cent to $60.9 billion.

"Full-year results were impacted by the strike, the 747 charge, the litigation-related reserve, and higher costs, which together reduced full-year EPS by an estimated $2.56 per share.

"This was partially offset by lower pension and deferred compensation expenses," the company said in a statement.

In 2008, the aircraft manufacturer witnessed six order cancellations and 110 differals which is just 3 per cent of its order backlog.

Last year, the company delivered 375 aircraft and had received orders for 662 aircraft with a book value of $279 billion - approximately eight times its revenue.

About 153 or 23.11 per cent of 662 net aircraft orders received by Boeing in 2008 originated from the Middle East of which 115 were from the GCC.

The UAE remains the top source for the orders, with 99 aircraft, led by 50 B737-800s by FlyDubai - the new low-cost airline launched by the Dubai Government to tap into the growing budget aviation market and Abu Dhabi-government owned Etihad Airways which placed orders for 45 aircraft last year.

The combined book value of the 95 aircraft orders stands at $13 billion at list prices.

Although Etihad's order book is lower than that of Fly Dubai, in terms of value, it outshines that of FlyDubai. Etihad's 45-aircraft order to Boeing is valued at $9 billion, while FlyDubai's order book stands at $4 billion.