Boeing may take year to decide on mini-jumbo revamp

Written By Unknown on Rabu, 07 November 2012 | 10.56

Boeing Co appears to be at least a year away from offering a new version of the 777, its most profitable jet, timing that would be later than some airline customers want and could push them into the arms of rival Airbus.

Carriers such as Dubai's Emirates Airlines and British Airways had planned on the new mini-jumbo, provisionally called the 777X, entering service by the end of the current decade. That being the case, the industry widely expected Boeing to begin selling the new jet by the end of this year.

With just seven weeks left in 2012, that timetable now appears increasingly unlikely, based on internal conversations between the planemaker and its customers.

"It's going to be way further off than people think," said a person familiar with the discussions who declined to be identified because the person was not authorised to speak publicly about the matter.

"Boeing is in conversations about it," the person added. "But the launch date (for sales) is a year away at least."

The 777X is aimed at the market for long-haul jets , worth hundreds of billions of dollars for Boeing and Airbus over the next decade or so. But some think delay by Boeing in creating the new 777 could push airlines into buying Airbus' rival A35 0-1000 jet , due to enter service in 2017.

Emirates, British Airways, Cathay Pacific Airways and United Airlines, big buyers of the 777, have been pressing for the 777X to come sooner rather than later. The 777 is one of the most successful jets of all time and airlines are eager for an ramped-up version that can go farther on less fuel with more passengers.

Rather than wait, United started talks with Airbus about upgrading some of its 25 orders for the A350-900 to the A350-1000, industry sources said. Cathay Pacific chose the A350-1000 in July. Analysts say others may grow impatient and follow.

In contrast, the 777X may not enter service until 2021 or 2022, rather than the end of the decade, based on Boeing's recent statements, said Richard Aboulafia, an analyst at the Teal Group in Fairfax, Virginia.

He was referring to comments by Boeing chief executive Jim McNerney on a conference call with analysts on October 24 in which he said, "We are looking at the end of the decade, beginning of the next decade" for entry into service."

"When you start throwing around 'early next decade' you're sending a message to customers to either buy our existing jets or go see Airbus," Aboulafia said. "You do not want to send that message."

A spokeswoman for Boeing said it hasn't changed the timing, but declined to say if it will begin selling the first 777X by the end of the year.

"While we haven't set a firm timeline or launched the program, we've consistently talked about a potential market entry around the end of the decade and we are engaging with our customers to define the airplane and its ultimate timing," said Karen Crabtree, head of product strategy communications for Boeing. Boeing also said it always aims to balance spending between investment and shareholders.



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