The first delivery of the first iteration of Boeing's flagship product, the 777X, will be pushed back by another year, with the first delivery expected in early 2025, according to the manufacturer's Q1 results.
The program was supposed to be delivered in 2020, but Boeing said it would take longer for the certification.
The production of the jets will be paused in order to avoid building up more inventory. This will add up to over $1 billion of abnormal costs in the second quarter of this year and continue until the production of 777-9 restarts. There will be no jobs lost due to this temporary halt.
“To minimize inventory and the number of airplanes requiring change incorporation, we’re also adjusting the 777-9 production rate ramp, including a temporary pause through 2023.”
Boeing CEO, Dave Calhoun
Boeing's CEO said that the production pause is necessary as the manufacturer may need to rebuild and modify those airframes. The US planemaker has built 20 of the aircraft for its customers and expects a quick certification by the end of the year.
The 20 Boeing 777X airframes that are already built are destined for the following airlines as reported by Simple Flying.
Exclusive: Inside the Experimental Boeing 777X
The first test flight of the Boeing 777-9 took place in January 2020 and the program has already received orders for 334 jets. The largest customer is Emirates with 115 of the type on order. Singapore Airlines and Qatar Airways have 74 and 31 aircraft on order respectively.
Although some of the customers haven't reacted much to the delay of the program, this isn't the case with the largest customer. Some of the older B777-300/ER models are expected to be replaced by the 777X.
In February, Sir Tim Clark spoke to Airline Ratings about the delays with the 777X Program and even talked about canceling the jets.
“Honestly, if it goes beyond 2023, and it goes on for another year, we probably cancel the program. What else can we do? We can’t continue the way we are. Boeing really needs to get their act together and get this aircraft sorted.”
Emirates CEO, Speaking to Airline Rating’s Andreas Spaeth
Discussing this latest delay, journalist Andreas Spaeth reported that there wouldn't be any cancellation for the time being. Sir Tim Clark said that the airline's patience isn't indefinite.
Last year, the CEO of the airline seemed to be happy with the delay of the Boeing 777X program. The CEO of the carrier said that they would remain committed to the program.
“We stand by our 777-9 orders. We think it is the right aircraft for us, especially now that it is coming later.”
Lufthansa CEO, Carsten Spohr
14 of the 34 jets originally ordered were converted to options in November of 2019. The German flag carrier had planned to replace its Boeing jets with twin jets. The airline didn't comment on the latest delay to the program.
Do you think Boeing will deliver its first jet in the early 20th century? Let us know what you think in the comments.
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