The aviation slump of the past two years was bad enough for Boeing, sending its share price down from around $60-to below $37, as civil aircraft deliveries collapsed from 620 in 1999 to barely 275 this year. Boeing has had to shed almost 40,000 jobs just to stay in the black. But the firm's problems have extended beyond plummeting sales. What is more, there are even tougher tests coming. Boeing is being forced to close the production line which makes its 757 aircraft, because orders have dried up. This has resulted in a charge against third-quarter profits―which are expected to be down by about a third when they are announced next week―of $184m, bringing total writeoffs this year to nearly $2.5 billion. Boeing's last two proposed new-product launches have flopped: the Sonic Cruiser fast jet and a new version of the venerable 747 failed to find any customers. Boeing is about to launch another 250-seat aircraft, called the Dreamliner, which it claims is 20% cheaper to run than the existing 767 it would replace. But cash-strapped American airlines have yet to come forward as launch customers. If the Dreamliner also flops, it will be disastrous for the company.
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