Boeing has switched the emphasis of product-development work on the proposed 777-200X/300X ultra-long-haul and stretch derivatives for at least three months.
The 300 staff working on the two planned variants are understood to have been switched from new-product development to focusing on reducing programme costs. Sources in Seattle say that all major processes are being examined to find ways of reducing investment and cutting project costs.
The decision is thought to have been prompted by various factors, including the reluctance of major airlines to commit to the programme. American Airlines and Delta Air Lines are both expected eventually to order the -200X and -300X as part of their larger purchase of Boeing aircraft, but are in no rush to make a decision.
A slowdown in Asian economies has also sapped demand for the ultra-long-haul 777-200X for non-stop transpacific operations. Malaysia Airlines, which has already signed a memorandum to order the aircraft, and potential buyers Korean Air and Asiana, all now face domestic financial difficulties, and other potential customers, such EVA Air and Emirates, favour the rival Airbus A340-500/600 range.
At the same time, Singapore Airlines appears to be cooling to the idea of operating a 200-seat aircraft non-stop over a range of 16,300km (8,790nm) to and from the US West Coast. Airline sources say that the 777-200X and rival A340-500 would require load factors of close to 90% to break even.
Boeing, meanwhile, is having to confront a series of distracting internal problems, such as a drop-off in cash flow and hold-ups in production. With all further work now on ice for at least 90 days, it appears increasingly unlikely that the -200X will meet its earlier entry- into-service target of September 2000. Observers suggest, however, that, with the first A340-500/600 not scheduled to enter service until 2002 and production thereafter sold out for at least 18 months, time is the least of problems for the 777-200X/300X.
Source: Flight International
