Boeing prospects worsen as 777X orders may slump

Photo: EPA

The plane maker Boeing said it no longer considered as firm several orders for its 777X super jumbo jets as buyers signaled pausing development plans amid world pandemic spread, Reuters reported. Boeing has noted that the orders which are no longer seen as firm has reached as much as 118 of the widebody jet under development as under accounting rules it has to regularly assess their viability, leaving it with 191 solid orders for the model.

Last week Boeing announced a $6.5 billion charge on the 777X in part due to weaker-than-expected demand for the model. It also pushed back its entry into service by a year to late 2023 in anticipation of a longer, costlier certification process.

“Delays on the 737 MAX and 777X programmes have resulted in, and may continue to result in, customers having the right to terminate orders and or substitute orders for other Boeing aircraft,” the manufacturer said in a regulatory filing. Customers for the 777X include Emirates, Qatar Airways, Etihad Airways, British Airways, Cathay Pacific Airways Ltd, Singapore Airlines Ltd, ANA Holdings Inc and Lufthansa.

Emirates’ President Tim Clark has suggested that his airline may not take its first Boeing 777X aircraft until 2024. Clark made the comments in an interview with Reuters. The Boeing 777X was initially supposed to enter service last year.

According to Boeing’s most recent update, it is expecting to start shipping the 777X to customers in 2022 as things stand. The first is due to go to Lufthansa, closely followed by the second to Emirates. However, in an interview with Reuters, Tim Clark suggested that the type’s delivery could be later than planned.

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