The Airline Industry Pauses For The 777X

Since 2004 Boeing has with its 777

• 796 Delivered
• 38 Backloggedged

It also has 326 orders for the 777X

• 53, 777-8X
• 273, 777-9X

This does not include any LOI's or optioned 777X orders on the intent book.

Randy Tinseth, Boeing VP Marketing has observed, “It’s the airplane that will replace the 747-400, ultimately the 747-8, and it is going to replace the A380,” telling reporters on the sidelines of the Association of Asia Pacific Airlines assembly of presidents in Jeju, South Korea on October 19, 2018.

He also commented, “The 777-8 is really about the replacement for the 777-300ER, and we’re not going to see that replacement cycle for that aircraft until we get into the next decade.”

All-in-all, Boeing is timing the market for its 777X and not imposing a whole new type of technology into the marketplace like it did with the 787 families of aircraft. Boeing most definitely is trying for another strategy during the 777X program, by using already paid for and proven technology coming from both the Max and Dreamliner programs. In fact, Boeing is trying to reduce its deferred balance when using 787 costed technology on the ongoing 777X program. The balance acquired when funding a developmental moonshot for its 787 programs was for its whole family of aircraft from the 737 to the unannounced 797. Boeing intends to pare down those deferred costs labeled 787 when it feeds the Max and 777X with proven aviation advancements from those programs. The commonality factor is helping pay for carbon wings and avionics suites Boeing now uses on its products that came from the 787 programs during the years 2006-2012. It is also is developing new technology from each aircraft type made which could be retrofitted onto its other family of aircraft in development or use.

The pause comes for the 777-8x as it only had about 53 orders. Once the airplane concept performs in tests, Boeing sees its established 777 clients pushing 777-8X orders forward in 2022. The market will heat up for that type as many Boeing customers own 777-200ER and 777-300's. They could trade a 20 years old 777 classic in for a 777-8X starting by 2022. When first 777-9X delivery is made in 2020 an airshow will be the event and with would come more 777X orders. It sounds like the London Airshow will make some 777X excitement during that event in 2020.

As remaining 777 backlog remains but is wrapping up as the 777X starts its production run the transition from 777 to 777X is right on time when considering five years ago how Boeing will fill the order book they have just done that. The program capacity will be placed for timely orders going forward as this WB tests out over the next 18 months.