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Boeing 777X delay ‘highly expensive for us’, says Emirates

Boeing 777X Emirates Reuters/Lindsey Wasson
Boeing 777X aircraft under construction at the company’s production facility in Everett, Washington: workers have been on strike at the plant for a month
  • Plane already four years late
  • Carrier has 205 on order
  • Forced to refit older aircraft

Planemaker Boeing’s announcement of more delays in the delivery of its 777X aircraft to customers has had a “significant and highly expensive” impact on Emirates’ fleet programme, the Dubai carrier said this week.

Emirates has already spent an extra $3 billion for a massive cabin refurbishment programme on 191 of its existing planes, 110 A380 aircraft and 81 Boeing 777s, as it awaits the first of its order for 205 777X jets. 

The 777X was due to be delivered four years ago. 

Boeing’s CEO, Kelly Ortberg said: “On the 777X programme, the challenges we have faced in development, as well as from the flight test pause and ongoing work stoppage, will delay our programme timeline.” 

Ortberg said that Boeing, which is already facing a month-long strike by workers looking for better pay, will reduce the size of its total workforce by around 10 percent, or around 17,000 people, “to align with our financial reality”.

Boeing’s shares fell 1.3 percent at the close of trading on Monday.  

Emirates president Tim Clark told AGBI: “With no clear timeline for the restart, coupled with ongoing strikes, I fail to see how Boeing can make any meaningful forecasts of delivery dates.

“Emirates has had to make significant and highly expensive amendments to our fleet programmes as a result of Boeing’s multiple contractual shortfalls, and we will be having a serious conversation with them over the next couple of months.” 

John Grant, a partner at UK consultancy Midas Aviation and a columnist at AGBI, said every Boeing customer has been frustrated with what has happened in recent years.

He said the workers’ strike is “an ‘enough is enough’ moment for the airlines”, who are also having to cope with operational issues. 

“There is a real issue with the industry’s supply chain, from human capital (pilots) through to spare parts, maintenance availability and licenced avionics engineers, airlines are having to defer new routes, scale back expansion and miss revenue opportunities,” Grant told AGBI

Material damage

In November 2023, Emirates announced a $52 billion order for 90 more Boeing 777X aircraft. The order was made up of 55 777-9 planes, due to be delivered in 2025, and 35 777-8s, with a delivery date of 2030.

In June, Clark said the delays were “doing material damage” to the way the company does business.

He said Emirates would be seeking compensation from Boeing for delays in the delivery of the aircraft.

“We’ve got a business to run and if we have to foot the bill for refurbishing all these planes, it should be put at Boeing’s door,” Clark told Reuters.

In May, Emirates chairman Sheikh Ahmed bin Saeed Al Maktoum called on Boeing’s new management to address technical issues with the 777X aircraft as a matter of urgency.

Qatar Airways expanded its 777 order book in July to nearly 100, with another 20 added at the Farnborough International Airshow.