Boeing again delays the 777X – the plane that's supposed to turn things around
Also warns it will fire thousands and keep making losses in space
Aerospace outfit Boeing has again delayed its 777X jet – a product on which it has hung all its hopes to help it turn around years of trouble – and warned of job cuts and further losses in its defence and space businesses.
The bad news came in a Friday message from CEO Kelly Ortberg that revealed the 777X won't reach customers until 2026 – after its planned 2020 debut had already been pushed back to 2022, and then again to 2025.
"The challenges we have faced in development, as well as from the flight test pause and ongoing work stoppage, will delay our program timeline," Ortberg wrote.
That's very unwelcome news, as the 777X is in demand – indeed, some airlines are upset it's late as they've had to keep flying older or less efficient aircraft while they wait for it – and has been seen as providing Boeing with a fillip once it's certified to fly and starts rolling down the production runway and into service.
The many delays to the plane cost committed customers plenty, and erode trust in Boeing's passenger aviation business. Sentiment towards that biz is already strained, as the US aerospace mainstay has struggled to deliver planes on time. That's not to mention well-documented safety issues with the 737 and allegations its 787 also has quality problems.
The extra delay also means Boeing won't see as much cash from the widebodies – money it could use, after development costs went far beyond planned spending.
Another decision Ortberg announced is the end of manufacturing for the 767 freighter in 2027, once existing orders have been fulfilled. The KC-46A Tanker, built on the same airframe, will continue. This decision leaves Boeing without a midsize freighter.
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Both decisions will benefit arch-rival Airbus. the European plane-maker offers its A350 and A330 as dedicated freighters, and will convert its other models (other than the A380) from passenger to freight operations.
Speaking of the A350, it in theory competes with the 777X – and now has another year or so without a rival.
Ortberg also warned, with regard to Boeing's Defense, Space and Security (BDS) business, "performance on fixed-price development programs is simply not where it needs to be.
"We expect substantial new losses in BDS this quarter, driven by the work stoppage on commercial derivatives, continued program challenges and our decision to complete production on the 767 freighter."
The likely lack of new interest in the buggy Starliner space capsule won't help, either.
The messes outlined above mean Ortberg has decided to reduce headcount by ten percent – or around 17,000 workers – "to reset our workforce levels to align with our financial reality and to a more focused set of priorities."
Boeing staff are already striking for better pay and conditions. Ortberg's two mentions of "stoppages" are clear indications the strikes are hurting the business – and now its workers. ®