Fleet Analysis: Why Boeing Faces Challenges in Marketing the 777X-8

Boeing 777-8F Freighter & 777-9

Boeing has encountered difficulties in promoting the passenger version of the 777-8 model. Out of a total of 383 commitments, only 24 are attributed to the 777-8. Notably, Emirates has placed an order for 16 units, while Etihad Airways, another prominent UAE airline, has committed to acquiring eight aircraft of this type, according to data from the aircraft manufacturer.

However, developments in June 2023 revealed Emirates’ order for an additional 16 777X aircraft, as indicated by Boeing’s Orders & Deliveries records for that month. This occurrence sparked speculation that the airline might have expanded its order to include the 777-9 model. In total, Boeing’s orders data indicated 318 firm orders for the 777X by June 30, 2023.

Boeing says it is “committed to the 777-8 passenger airplane, which will follow the 777-8 freighter.” Emirates President Tim Clark expressed his frustration at the International Air Transport Association (IATA) Annual General Meeting in June 2023 regarding Boeing’s delayed introduction of the 777-8. Nevertheless, Clark acknowledged the 777X’s potential as an impressive twin-aisle aircraft.

In response to inquiries, an Emirates spokesperson conveyed the airline’s commitment to 115 aircraft of this type, without specifying the division between the 777-8 and 777-9 models.

Should Emirates indeed revise its order book, only eight orders for the passenger version of the 777-8 would remain. In contrast, the 777-8F model has garnered 55 orders, while the 777-9 has secured 304 orders.

The possible reasons for its poor sales performance of the 777-8 might be:

• The Boeing 777-8 has faced several delays and challenges in its development and certification process, due to technical issues, regulatory hurdles, and the impact of the Covid-19 pandemic.
• The first flight of the Boeing 777-8 was originally scheduled for 2019, but has been pushed back to 2023.
• The Boeing 777-8 has a high price tag of $410.2 million, making it one of the most expensive commercial jets in the market. The high cost may deter some potential customers.
• The Boeing 777-8 has a limited customer base, as it mainly targets airlines that operate ultra-long-haul routes. So far, only three airlines have ordered the Boeing 777-8: Emirates, Qatar Airways, and Etihad Airways.
• The Boeing 777-8 faces competition from other long-range jets in the market, such as the Airbus A350-1000, or its own 787-9, offering lower acquisition costs. Boeing ultra-long-haul jets such as the 747SP, 777-200LR, or the Airbus A340-500 have sold in small numbers.

Technical Modifications to the 777-8
In early August 2023, Boeing announced that it had implemented significant technical modifications to the 777-8 model, resulting in an extended aircraft structure that has led to remarkable gains in both passenger capacity and operational range, matching the dimensions of the 777-8F cargo jet.

Presently, on Boeing’s official product page for the 777X aircraft series, encompassing the 777-8 and 777-9 variants, the details highlight that the 777-8 variant accommodates 395 passengers in a standard two-class configuration, enabling flights covering distances of up to 8,745 nautical miles (approximately 16,190 kilometers). The aircraft’s length measures 232 feet and 6 inches (about 70.86 meters).

Before the update, the specifications reflected the 777-8’s capacity at 384 passengers, with the capability to travel up to 8,730 nautical miles (roughly 16,170 kilometers), and the length was listed as 229 feet (around 69.79 meters).

Subsequently, by June 2, 2023, the specifications for the 777-8 model underwent alterations, with the exception of the aircraft’s length, which Boeing had revised in January 2023, according to archived data.

In contrast, the larger 777-9 variant can accommodate around 426 passengers in a two-class seating arrangement, capable of flying up to 7,285 nautical miles (around 13,500 kilometers). Furthermore, it boasts a length of 251 feet and 9 inches (roughly 76.72 meters), which is nearly 20 feet longer than the 777-8 model.

Boeing’s Outlook and Challenges
Upon announcing its Q2 2023 results, Boeing’s Securities and Exchange Commission (SEC) filing highlighted the anticipation of the first 777X-9 delivery in 2025, whereas the initial 777X-8F delivery is projected for 2027.

As of June 30, 2023, the company has recorded abnormal costs of $587 million related to the 777X program, with an estimated total of around $1 billion expected until the aircraft production resumes later in 2023. Earlier plans had slated the resumption of 777X production for 2024.

David Calhoun, Boeing’s President and Chief Executive Officer (CEO), indicated that there has been no substantial progress in the Federal Aviation Administration’s (FAA) certification of the 777X. Nonetheless, the company aims to proactively address production challenges, as emphasized during the Q2 2023 results conference call.