Boeing’s 777X program has been hit by another blow as its fourth-quarter 2020 accounting standard assessment has adjusted firm orders from 309 to 191. Firm orders are those which the company feels confident will result in a completed sale and purchase. Only last week the American planemaker was forced to take a US$6.5 billion charge on the 77X, partly as a consequence of the reduction in demand as a result of the global pandemic, and partly because of delays in the certification process.
With Boeing’s certification processes now under close scrutiny, together with the involvement of the FAA, the 777X certification process will likely see the wide-body jet now enter into service a year later than planned, in 2023.
“Delays on the 737 MAX and 777X programs have resulted in, and may continue to result in, customers having the right to terminate orders and or substitute orders for other Boeing aircraft,” the manufacturer said in a regulatory filing. Orders for the 777X have come from Emirates, Qatar Airways, Etihad Airways, British Airways, Cathay Pacific Airways Ltd, Singapore Airlines Ltd, ANA Holdings Inc and Lufthansa.
Boeing Chief Financial Officer Greg Smith said last week on an earnings call that the company’s order backlog had fallen during the fourth quarter of 2020, including the revised schedule for the 777X.
