Boeing announced the move, which was expected but brought forward in the wake of the Corona crisis • The iconic aircraft was popular with passengers, but was considered economically problematic

Aviation in the world of aviation: The aircraft manufacturer Boeing announced today (Wednesday) the cessation of production of the 747 ("Jumbo") aircraft as part of a series of significant changes resulting from huge losses that reached $ 2.4 billion.

CEO Dave Calhoun said the possibility of staff cuts was also being investigated in addition to the layoffs of 10% of employees already made. It was further reported that production of other models of the company, such as the 737MAX will be slower than expected due to the many losses.

The main reason for parting from the plane is the lack of economic viability. Most airlines intended to part ways with the jumbo in the coming years, and some (British, KLM and Quantas for example) got ahead of it and did so now.

Last year, El Al also decommissioned its 747s fleet, replacing it with 787 Dreamliner aircraft. The Jumbo, despite being popular with passengers, is considered an uneconomical aircraft for most airlines, due to its size and the fact that it is equipped with four engines. The multiplicity of engines increases fuel consumption relative to twin-engine aircraft, and the fact that hundreds of passengers are needed on each flight to cover the high costs makes it very difficult to operate the aircraft profitably. 

In addition, until the Corona crisis, the aviation market is experiencing a process of switching to lower-occupancy aircraft, which also fly directly to less major airports. This is in place of the flight habits from previous decades, in which it was customary to fly in planes with large occupancy to a central airport, and from there to continue on smaller planes to the final destination.

"The impact of the Corona on aviation continues to be severe, far beyond expectations," Calhoun said. The Corona has left the aviation sector facing an unprecedented crisis, but for Boeing this is a significant addition due to the fact that the company was already in financial difficulties following the two crashes of the 737MAX aircraft last year.

A source at Boeing told Israel Today that the last planes of the model that have already been ordered will continue to be built until 2022. The workers on the production line will for the most part be transferred to assemble other models.

Meanwhile, the aviation giant announced that its losses in the first quarter of 2020 stand at $ 2.4 billion, mainly due to a 25% drop in sales to just $ 11.8 billion. CEO Calhoun added that “Government services, security and space programs provide us with critical stability for the continued existence of the company. We take maximum action to ensure the future of the company and its employees. "