This post was brought to you by Simple Flying.
News from American aircraft manufacturer Boeing announced today that the Seattle-based plane manufacturer is facing challenging headwinds. Beyond navigating its current environment, structural changes will be required to ensure its ability to remain competitive.
Delays to the 777X
As announced by Boeing in today's media release, a key message and update included the first expected delivery date for the hotly anticipated Boeing 777X variant. However, due to the changes faced in its development, test pauses, and ongoing work stoppages, the first delivery of the 777X will not be until 2026.
Photo: Falcons Spotters | Shutterstock
Stressing that the manufacturer needs to be clear about the challenges ahead, key milestones for its path to recovery, and restoring focus on performance and innovation will be at the core of overhauling Boeing's integrity, this is in contrast to many at the plane maker who believe they are spread too thin, and this has been reflected in underperformance and underinvestment.
Fixed price development program needs adjustment
Furthermore, Boeing has stressed that its Boeing Defense, Space & Security (BDS) fixed price development program needs an overhaul, with it expecting substantial losses this quarter. Work stoppages in commercial derivatives and continued program challenges have led to the decision to also complete production of the 767 freighters.
Boeing will build and deliver the remaining 767 Freighters on order to customers and wind up production of this program by 2027. The production for the KC-46A variant will remain.
Photo: Thiago B Trevisan | Shutterstock
Actions at Boeing must align to reset the workforce and ensure financial viability. Over the next month, priorities will include reducing the overall workforce by 10%, which will be at all company levels, including executives, managers, and general staff. Leadership teams will sit down with individual groups over the coming weeks to outline the future of the relevant departments. At this point in time, there will be no consideration of further furloughs.
Focusing on safety and quality
President and CEO Kelly Ortberg shared the following message:
As we move through this process, we will maintain our steadfast focus on safety, quality and delivering for our customers. We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them. However, the state of our business and our future recovery require tough actions.
We will be transparent with you regarding the timing and impact of these steps, and we will be professional and supportive to everyone along the way.
Thank you for all that you are doing through this very challenging time at Boeing. We will navigate through this moment. We will re-focus our company, and we will restore trust with all those who depend on us.
Boeing 777X Orders
| Boeing 777X Orders (as of 1 September 2024) | ||
| Airline | Orders | Variants |
| Emirates | 205 | B777-9; B777-8 |
| Qatar Airways | 94 | B777-9; B777-8F |
| Singapore Airlines | 31 | B777-9 |
| Lufthansa | 27 | B777-9; B777-8F |
| Etihad Airways | 25 | B777-9; B777-8 |
| Cathay Pacific Airways | 21 | B777-9 |
| All Nippon Airways | 20 | B777-9 |
| Korean Air | 20 | B777-9 |
| British Airways | 18 | B777-9 |
| Air India | 10 | B777-9 |
| Cargolux | 10 | B777-8F |
| Ethiopian Airlines | 8 | B777-9 |
| Silk Way West Airlines | 2 | B777-8F |
| Unidentified Customers | 12 | B777-9 |
The Boeing 777X program was proposed in the early 2010s, mainly in response to the revamped Airbus A350 XWB. The initial concept was a 400+ passenger aircraft that stretched the 777-300ER by four frames, powered by 99,500 lbf (443 kN) engines, and targeted 10% better operating costs than the A350.