(Washington) Qatar Airways on Monday placed a mega order with Boeing for the freighter version of its new 777X widebody, on which the manufacturer is banking to defend its positions in the freight sector against Airbus, as well as for its star plane, the 737-MAX.
Posted at 3:27 p.m.
The company, which formalized this agreement on the occasion of a visit by the Emir of Qatar to the White House, has undertaken to buy 34 777-8 Freighter and has put an option on 16 additional aircraft.
The contract is worth more than $20 billion at list price and represents the largest order the manufacturer has ever received for cargo planes.
Qatar Airways also signed a letter of intent on Monday to order 25 single-aisle 737 MAX in its largest version, the 737-10, with an option for 25 additional aircraft. The commitment amounts to nearly $7 billion at list price, often higher than the actual price paid by customers after negotiations.
The announcement marks a disappointment for Airbus, in open conflict with the Qatari company which accuses it of defects on its A350 passengers.
Qatar Airways has grounded part of its A350 fleet due to fuselage surface damage and is suing Airbus for compensation.
The manufacturer responded sharply by recently canceling a contract for 50 A321neo single-aisle aircraft.
Airbus also launched a freighter version of its A350 last summer, hoping to better compete with Boeing in the freight transport market.
The European manufacturer, which has so far given free rein to its competitor and its B747s, B767s and B777s, has received 11 firm orders and 11 purchase intentions at this stage.
Breath of fresh air
For Boeing, this is a breath of fresh air.
The order for 50 freighter versions of the 777X “represents two full years on the production lines”, underlined its general manager, Dave Calhoun, on the occasion of the signing ceremony at the White House.
It should support more than 35,000 jobs in the United States and bring 2.6 billion dollars per year to the American economy during the contract. The first deliveries are scheduled for 2027.
The freighter version of the 777X, which will be built at the Everett plant in the western United States, “will meet an important need in the supply chain”, he also stressed.
The plane will be able to fly up to 8167 kilometers and carry up to 118 tonnes, using less fuel than aircraft currently in service.
It represents Boeing’s first commercial jet launch in nearly five years and a boost to the 777X program, the world’s largest jet launched in 2013.
The first deliveries of the passenger versions of the aircraft were initially planned for 2020, but have been postponed several times and are now expected at the end of 2023.
The agreement announced on Monday also includes the conversion of 20 of the 60 777X orders placed by Qatar Airways.
Boeing has certainly seen its deliveries begin to recover in 2021 after two years of scarcity linked to the setbacks of its flagship aircraft, the 737 MAX, and the pandemic.
But he must also manage the suspension of deliveries of the long-haul 787 Dreamliner, plagued since the summer of 2020 by production problems, which has cost him $ 5.5 billion so far.
By launching a freighter version of the 777X, Boeing is trying to take advantage of the current surge in air freight, driven by the rise of online commerce and congestion in maritime transport.
This segment is a welcome source of revenue as orders for large passenger aircraft are devastated by the COVID-19 outbreak and the drop in international flights.
Boeing recorded a record number of orders for new and converted cargo planes in 2021.
Launching a cargo version of an aircraft still in development, the 777X, is however very unusual, notes Richard Aboulafia, specialist in the aeronautics sector for the firm AeroDynamic. Boeing “may be sending the wrong message” by suggesting that the group could focus more on this cargo version, he says.