Six years ago, the Dubai-based airline committed to the newest Boeing 777 derivative, the 777X. While neither the A350 nor the 787 have yet flown bearing Emirates’ colors, the 777X is yet to be certified. However, even before that relationship begins, the drama will be already there. Feb 03, 2021 Emirates is reconsidering its commitment to Boeing’s newest jet, the 777X.The Dubai-based carrier is considering swapping as much as one-third of its order of the 777X for the smaller Boeing 787 Dreamliner, according to a person familiar with the matter.

By Alexander Cornwell

DUBAI (Reuters) - Emirates Airline President Tim Clark on Wednesday said Boeing Co's 777X might not enter into service with airlines until 2023 or even later, amid uncertainty over the development timeline of Boeing's biggest twin-engine jet and when it will be certified.

Boeing has been developing the widebody jet, a new version of its popular 777 aircraft, with the goal of releasing it in 2022, already two years later than planned.

The 777X will be the first major jet to be certified since software flaws in two Boeing 737 MAX planes caused fatal crashes and prompted accusations of cozy relations between the company and the U.S. Federal Aviation Administration (FAA).

'It is a question of when that aircraft is going to be completed and certified and offered for entry of service. That could be '22, could be '23, it could be even longer,' Clark told Reuters in an interview.

'So we will just wait and see as to what Boeing will do with regard to that and we will take a view as to how they fit into the fleet at that particular time.'

Boeing could not be immediately reached for comment.

Clark said he expected regulators to place the new jet under higher level of scrutiny as a result of the MAX crisis, and Boeing's Chief Financial Officer Greg Smith has warned the market entry would be influenced by the requirements of regulators.

But Clark doubted this would add significantly to existing delays.

'This is essentially a modern 777, which of course is a workhorse for international travel and it has been a thoroughly reliable, excellent bit of Boeing design so I don't see why the 777X should be any different,' Clark said.

European regulators have said in particular that they will subject the 777X to extra scrutiny after the fatal crashes prompted the 20-month grounding of the 737 MAX.

The MAX crashes in Indonesia and Ethiopia killed 346 people within five months in 2018 and 2019 and triggered multiple investigations and weakened U.S. influence over global aviation.

Emirates originally ordered 150 of the 777X series, which seats up to 406 people, and now has 126 on order. Analysts say the COVID-19 crisis has clouded the demand for such big jets.

The plane was originally due to enter service with Emirates in June 2020.

(Reporting by Alexander Cornwell; Editing by Chris Reese and Aurora Ellis)

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Emirates is reconsidering its commitment to Boeing’s newest jet, the 777X. The Dubai-based carrier is considering swapping as much as one-third of its order of the 777X for the smaller Boeing 787 Dreamliner, according to a person familiar with the matter.

As first reported by Bloomberg, Emirates is looking to swap between 30 and 45 of its 115 777X orders for Dreamliners. The move would be a troubling one for Boeing and its 777X programme, as Emirates is the largest customer of the yet-to-be-launched aircraft.

Emirates’ move isn’t the first of its kind. Boeing indicated on Monday that it’s at risk of losing nearly 40% of its 777X orders because of delays. With the 777X now slated to debut in 2023 — more than two years later than previously expected — customers are permitted to walk away from their contracts.

Related:All about the new Boeing 777X

This week, Boeing lowered the backlog of the 777X to just 191 aircraft, according to a regulatory filing. That number, much lower than the 309 firm orders that are listed on the planemaker’s site. Boeing said in an email that the drop is the result of an accounting standard that requires sales at risk of not happening to be removed from the backlog.

In its fourth-quarter earnings call, Boeing detailed that it had taken a $6.5 billion charge for delays to the 777X. The delay could bring additional losses to Boeing when it considers cancellations, production cuts and flight-testing risks.

Emirates, which was one of the first 777X customers, declined to comment on the report that it’s looking to drop some of its 777X order in favour of the 787 Dreamliner.

As the coronavirus pandemic continues to set back the aviation industry, airlines have largely set aside their long-haul routes. As such, the demand for wide-body, twin-aisle planes has decreased — including for the future of the 777X, which is set to be the heir to the superjumbo Boeing 747. Orders for wide-body aircraft with both Boeing and Airbus are expected to be the last to recover from the pandemic-spurred drop in demand. Boeing has already said that it’s cut the output of its Dreamliners.

Emirates Boeing 777x Class

“The decline in backlog in the fourth quarter reflected aircraft order cancellations and removal of aircraft orders from our backlog due to the ASC 606 accounting standard, including our most recent assessment of 777X backlog due to the revised schedule,” Boeing Chief Financial Officer Greg Smith said on a call with analysts last month.

Boeing saw a similar slump in orders for the 737 MAX aircraft following its nearly two-year worldwide grounding. More than 1,100 orders for the plane were removed from Boeing’s backlog of the 737 Max.

Related:Boeing’s bad quarter: Company delays 777X, 737 MAX timeline as COVID hits business

In its fourth-quarter earnings report, Boeing posted a record net loss of nearly $12 billion. The two-pronged dagger to Boeing consisted of the ongoing effects of the beleaguered 737 MAX, as well as the COVID-19-spurred downturn in demand.

Boeing

“I’m sure glad 2020 is in the rearview mirror,” Boeing CEO Dave Calhoun told CNBC.

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