Bridging the gap

A lot has been written lately about the production bridge between the 777 and the 777X. In fact, it was one of the top questions I got during the Farnborough Airshow.

We’re making great progress—as witnessed by this week’s website roll that included 10 more orders for the 777-300ER from unidentified customers. Including freighters, that brings us to 39 orders and commitments this year for today’s 777.

Here’s the way I look at it. We have six years before the 777X is delivered. We already have three years worth of 777 orders in our backlog. So bottom line, we have three years of production to fill—and six years to do it.

We’re sold out on 777s through 2015—and 2016 is looking good. There’s also a lot of activity in the order pipeline that should solidify things for 2017 and 2018.

There’s no question the production bridge is a challenge. But with the value proposition the 777 brings our customers, we’re confident we’ll get there.

Comments (5)

V V (Montréal, Québec):

I sincerely think a production slowdown toward the end of an aircraft type that will be replaced by a much better one is normal.

Nonetheless, the ramp down must be planned both in industrial terms (supply chain, logistics and so on) and in financial terms.

In my humble opinion, it is not reasonable to have a huge backlog of a product that is getting closer to production end.

Isn't it much better to keep the value of the current product high by slowing down the production toward the end instead of producing many aircraft that would bring the value down, both in the new-build market and in the second hand market?

Generally, lessors love to keep high resale value of their aircraft. Scarcity also helps to keep the lease rate high.

Andrew Boydston (Boise, ID USA):

Randy,

The 777-300ER is just better than A350-1000. Airbus didn't meet the Boeing challenge concerning the 777-300ER. I know you will carefully watch orders for the 777-300ER, as compared in head to head orders with the A350-1000. I only mention the 777X, since it has already surpassed the A350-1000 in one day during last years Air Show announcement (Dubai), when Boeing took on over 250 777X orders on that day. I am confident that the 777-300ER orders will continue as the "Boeing Wide Body Transition Solution".

Andy

Paulo M (Johannesburg, RSA):

Well, it's the contrasting ideas that are most striking - the 777-300ER has been the better aircraft at almost every airport worldwide for over 10 years - 10 years without meaningful competition, and we're talking about production gaps before some form of competition reaches the skies. And, in twin engine stakes, it'll be surpassed only by the 777X in terms of payload-range capability. Big twins & ETOPs..

Norman Garza (Long Beach, CA):

With the orders for the 777-300ER still coming, I can see the 777-300ER and the 777-9 in co production for some time. Boeing has the 777-300ER and 777-9 market to itself since Airbus has no plane in the size scale of the 777 "stretch line", the A350-1000 a bit smaller than the 777 is not selling so greatly selling on the claim that it will be a lot less heavy than the 777-300ER. In January 2014 AW&ST showed a display of an Airbus "Mega Twin",it would be years and years if launched until we see it in service. I think the fact that the 777X is discussed so often shows that the type is a great successor for the 777-300ER and the sales are good.

Dr Dorothy (Washington):

Congratulations to Boeing tops Pentagon and USAF contractors list!

Congratulations to the launching of Pentagon DARPA ( Defense Advanced Research Projects Agency) Cyberwarfare PLAN X !Boeing tops Pentagon contractors list with Boeing 's combined rotary-wing, airframe and UAV deals were enough to make it the Defense Department's leader for aviation-related transactions!

Congratulations to PENTAGON & USAF's Space-Based Infrared System (SBIRS) with Boeing tops Pentagon contractors list!

Congratulations to Pentagon approvement of latest Air Force Space Fence Plan (formerly Air Force Space Surveillance System S-Band Radar), a system of ground-based radars that would significantly expand the number of objects being tracked in Earth orbit ! Another strong future extreme and extraordinary advancement of Pentagon and USAF in Space Situational Awareness!And Boeing tops Pentagon contractors list!

Congratulations to the strong and rich Pentagon with unprecedented power over not just the planet earth but other planets landed by NASA and USAF where with cyberwarfare, combining biometrics, latest extreme advance hi tech invented weapons for defense , and a potential future aerospace shield and advancement, our USA Pentagon is rushing and speeding toward uncharted territory, and domination for the defense of our country !Congratulations again to Boeing tops Pentagon contractors list!

Best regards,
Dr Dorothy

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