Boeing cuts production of 777 aircraft due to falling demand

[NM]

from news.com.au:

US AEROSPACE giant Boeing has said it would slash production of its twin-aisle 777 aircraft to five planes per month from seven, citing "significant deterioration" in the airline industry.

Boeing said in a statement it decided to reduce 777 production, beginning in June 2010, "due to significant deterioration in the business environment for airlines and cargo operators driven by unprecedented global economic conditions."

 

[Evan]

I wonder if there is something else behind this, or has 777 depand really fallen off a cliff ? i was thinking it may allow more staff to ramp up on 787's ?
If you follow the logic that 777's are in less demand, and the first few F model will be immediatly parked i can't see how the 747-8 has not just stopped... not permenantly but slowed down to a crawl. After all the last loadair 744F's will probably be sitting beside the AF 777F's in the desert for a while also.

Does not look good, but must admit i am surprised about this.
Maybe its also that it costs a lot more to build those extra 2 per month with lots of over time or something like that.

E

 

[NM]

Boeing claim the reason is that some customers are asking for deliveries to be deferred. So how this related to "demand" is a matter if interpretation. They claim there has not been any order cancellations. This does seem to be believable reason to me.