Analyst ‘concerned’ about Boeing sluggishness on 777X

The signals that Boeing executives are sending on the 777X have one of the world’s most-influential aerospace analysts concerned.

Key 777 customers want the updated version to enter the market by 2019 or earlier. But Boeing’s chief executive has indicated the company won’t introduce the 777X until sometime next decade.

“That’s not the message you want to send to the market,” said Richard Aboulafia, an analyst with the Teal Group who is one of the most-quoted in the business. He addressed about 400 people Wednesday at an aerospace conference in Lynnwood.

The only reason to tell customers Boeing won’t deliver the 777X when they want it is if “you want to see the (A350)-1000 do well,” he said.

Aboulafia took Boeing to task over the company’s unwillingness to invest in new products over the last decade. Airbus, on the other hand, has invested in research and development fairly consistently. Unfortunately for the European jet maker, it invested in the A380, he said.

Aboulafia is speaking at the Pacific Northwest Aerospace Alliance annual conference, which goes through Thursday.

A couple other comments from the analyst:

On Airbus’ A380: “Boy, the A380 seems to have faded into irrelevance.” But Boeing’s 747-8 isn’t doing that well either, he said.

On Boeing’s recent 787 woes: “In the long run, I think they’ll get it right. We’re keeping the faith, despite … what could be a difficult year.”

On the A350: Airbus is “starting to get some traction” in terms of orders.

On automatic U.S. budget cuts: “I think there’s a 15 to 20 percent chance of sequestration sticking.”

On Boeing’s KC-46 tanker and sequestration: “I think it will be OK.” The fixed price tanker contract is “really beneficial for the Air Force.”

More in Herald Business Journal

Aerospace workers adjust to changing industry

The number of Boeing workers dropped almost 10 percent since last year.

Tom Hoban
Are millennials warming up to life in suburbia?

They dominate the apartment market and their wants need to be accounted for, says columnist Tom Hoban.

Camano artist mixes flask, paintings for successful cocktail

Art flasks prove popular as bachelorette gifts, birthday presents and wedding favors.

Fluke’s T6 Electrical Testers receives Innovation Awards honor

Fluke’s T6 Electrical Testers have received top honors in the Tools and… Continue reading

Everett volunteer named ‘community champion’ by Molina Healthcare

Everett’s Jorge Galindo was one of seven people across the state to… Continue reading

Cascade Valley Health to hold Festival of Trees in Arlington

Cascade Valley Health Foundation will be holding their fifth annual Festival of… Continue reading

7-Eleven program helped add 500 trees, shrubs to Everett park

Last month, 7-Eleven helped plant more than 500 trees and shrubs at… Continue reading

Pentagon inspector general praises secret $80 billion bomber

US Government Accountability Office in 2016 rejected a protest filed by Boeing-Lockheed Martin.

Everett’s Sentry Credit celebrates a quarter century in business

Sentry Credit Inc. in Everett is celebrating its 25th year in business.… Continue reading

Most Read