Boeing 777 Crutch

As we noted here already once this week, year-to-date order intake for the 777 has been incredibly strong for Boeing.

But for Boeing, the 777 is turning into a real crutch this year, basically holding up the orderbook in a way that is unusual for a widebody of its type. Through August 10, the 777 order intake represented 27% of all the commercial airliner orders the company has booked. The nearest previous high was in 1995, when the 777 booked 22.9% of orders that year.

So what gives? The relative strength of the 777 certainly has something to do with the anemic order intake for the 737, with Boeing's product strategy in that category having been muddled for much of the year. With the company now committing to re-engining the 737NG, Boeing may unlock further narrowbody orders and reduce the 777's relative strength (although there are also 777 deals that have yet to hit the order book).

The situation is further compounded by the lack of any new orders year-to-date for the 787.

There is clearly ample time for the other Boeing aircraft types to book further commitments and bring the 777 back down to more historic levels of between 8-15% share of the aircraft maker's annual orderbook, but with Airbus having deferred entry-into-service of 777-300ER's rival, the A350-1000, and with Toulouse not offering any direct competition to the 777 freighter, there is ample reason to believe the program will maintain its above average position this year.

What is more, Jim Albaugh, president of Boeing Commerical Airplanes says talks are ongoing with a half dozen airlines about the 777X, he tells Jefferies Global Industrial and A&D Conference.

Tags: tw99, Boeing, 777