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GPA Delays 26 Boeing Orders; Drops Tentative Orders for 26 Other Planes

January 22, 1993

SEATTLE (AP) _ Boeing Commercial Airplane Group agreed Friday to delay deliveries of 26 new jets worth more than $1.3 billion to GPA Ltd., the Irish plane leasing company.

GPA also decided not to take delivery of 26 planes tentatively ordered from Boeing for 1997.

A Boeing spokeswoman said the changes were taken into account when Boeing earlier announced production rate cuts on its 757 and 767 model jetliners, and that no further cuts or job losses are immediately anticipated.

GPA, which buys jets and leases them to airlines and cargo companies, has been struggling financially for nearly a year. It has asked its lenders, shareholders and suppliers to help it restructure and has been negotiating with Boeing, McDonnell Douglas, Airbus Industrie and Fokker Aircraft to defer some $5 billion in orders.

In a statement, Boeing said agreement on the changes was reached last year and was contingent on GPA’s successful financial restructuring.

Under the agreement, Boeing will push back 26 firm orders for aircraft that were to be delivered in 1993 and 1994 to delivery positions that had been reserved by GPA in 1997.

GPA is not going to replace the 26 planes bumped from the 1997 delivery positions at this time, Boeing spokeswoman Kirsti Dunn said.

While those planes had been listed among Boeing’s announced orders, they were not included in the company’s financial backlog, Dunn said. The aircraft will be deleted from the announced order list, but won’t affect the financial backlog, she said.

As of the end of 1992, Boeing had announced unfilled orders for 1,468 aircraft.

The planes being pushed back to 1997 delivery include 11 737s, seven 757s and eight 767-300ERs. Neither Boeing nor GPA placed a value on the airplanes. But according to Boeing price lists, the aircraft could be worth $1.3 billion to $1.6 billion, depending upon the mix of models and configurations.

In September, Boeing and GPA said they had agreed to delay 38 aircraft, most of which were orders subject to reconfirmation. Friday’s announcement represents a separate set of aircraft, Boeing said.

GPA still has 120 jets on order at Boeing, Dunn said.

Boeing reduced its production of 737 twinjets in October from 21 planes a month to 14. It has said it will cut production of the larger 757 aircraft from seven a month to five, and the widebody 767 from five per month to four, by November.

The company also said it may reduce its work force by 2,000 jobs this year.

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