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Emirates really isn't happy with Boeing — and will be having a 'serious conversation' about the latest 777X delay

Oct 14, 2024, 19:16 IST
Business Insider
Emirates' Sir Tim Clark criticized the latest delays to the Boeing 777X.BRENDAN SMIALOWSKI/AFP via Getty Images
  • Emirates' president criticized Boeing over further delays to the 777X jet delivery.
  • Tim Clark said delays have been costly, and the airline will have "a serious conversation" with Boeing.
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The president of Emirates, one of Boeing's biggest customers, has slammed the planemaker after it announced a further delay to its much-anticipated 777X jet.

Because of inspection delays and ongoing strike action, "I fail to see how Boeing can make any meaningful forecasts of delivery dates," Sir Tim Clark said in a statement shared with Business Insider.

"Emirates has had to make significant and highly expensive amendments to our fleet programs 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," he added.

With 262 such planes on order — nearly half the overall total — Emirates is the largest customer for the 777X. With a capacity for more than 400 seats, it is set to become the largest twin-engine jet in operation. It will also include revolutionary folding wingtips and be 10% more fuel-efficient than competitors.

Boeing's newest jet is already five years behind schedule. However, its popularity with customers has provided a boon for Boeing in the wake of slowed production and January's Alaska Airlines blowout.

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After years of delays, further problems surfaced in August when Boeing paused flight tests when it found a problem with a component that connects the engine to the plane.

The Boeing 777X has revolutionary folding wingtips that are a first in commercial aviation.Taylor Rains/Business Insider

When CEO Kelly Ortberg announced last Friday that 10% of employees would be laid off, he also said the first delivery of the 777X would be delayed to 2026.

In a preliminary third-quarter earnings report the same day, Boeing said this delay would cost $2.6 billion.

The 777X is assembled at a factory in the Seattle area, where 33,000 union members have been on strike for a month in an increasingly heated dispute.

Clark told The Air Current in June that he expected delivery of the plane in the second quarter of 2026 — but Boeing's latest announcement appears to have increased frustrations.

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Sheikh Ahmed bin Saeed Al Maktoum, the Emirates CEO, previously said the 777X delays would force it to use existing jets for longer than planned, Reuters reported.

Boeing did not immediately respond to a request for comment from BI.

"While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company," Ortberg said Friday.

Boeing's share price has fallen 40% since the start of the year and was down 2% in pre-market trading.

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