According to CCTV News, on August 19th, Boeing discovered cracks in the structure of the 777X aircraft during its first test flight.
It is reported that the Boeing 777X Unit 3 (WH003) test aircraft took off from Kona Airport in Hawaii on August 16th local time and underwent routine inspections after completing a 5-hour and 31 minute flight. However, upon inspection, it was discovered that the thrust rod of the aircraft had fractured. After further inspection of the other two test aircraft, similar issues were also discovered.
Boeing stated that it has reported the malfunction to the Federal Aviation Administration (FAA) and customers in the United States and suspended its test flight program. The company stated in a statement, "We have identified a component that did not perform as designed. Our team is replacing the component, documenting any lessons learned, and will resume flight testing once it is ready
Up to now, Boeing has not disclosed how long the test flight suspension is expected to last, nor has it revealed whether it will delay the first delivery of the aircraft model.
Shen Haijun, a professor at the School of Aeronautics and Mechanics at Tongji University and director of the Institute of Aircraft Engineering, said in an interview with First Financial Journalist, "It is normal for various problems to occur during the airworthiness certification process of new aircraft - unless there are major design or technical defects. This stage is a process of continuous test flights and modifications
He also said, "On the one hand, the airworthiness certification cycle of this aircraft model will be extended, and the delivery time will also be delayed. According to the contract terms, it may be necessary to compensate the customer for breach of contract. On the other hand, delayed delivery will also affect Boeing's reputation and the confidence of the company's internal and external (such as FAA) in research and development technology
On the 20th, Boeing's stock price fell 4.2% due to this impact, closing at $172.1 per share. Since the beginning of this year, the company's stock price has fallen by over 30%.
In fact, Boeing has not achieved profitability since 2019. In the second quarter of this year, Boeing suffered a huge loss of $1.4 billion, which is almost 10 times the loss of $149 million in the same period last year; Boeing delivered 92 aircraft in the second quarter, a year-on-year decrease of 32%.
The highly anticipated 777X
Boeing has high hopes for the 777X, calling it the "world's largest and most efficient twin engine aircraft" designed specifically for long-distance international flights, with larger portholes allowing every seat to see the scenery outside. More importantly, this model will reduce fuel consumption and emissions by 10% compared to competitors, as well as operating costs by 10%.
However, the 777X project has been plagued by delays and cost overruns since its launch in 2013.
In January 2020, the 777X aircraft finally achieved its first successful test flight. Boeing referred to the 777X as the development code, and the aircraft's future official name is the Boeing 777-9. It is expected that the model will begin delivery next year. There are also smaller but longer range 777-8 passenger planes and cargo planes in this series.
According to the Boeing website, as of the end of June, the Boeing 777X has received 540 orders from customers including Emirates Airlines, Qatar Airways, and Lufthansa.
However, Sir Tim Clark, the President of Emirates Airlines, stated earlier this year that "the delivery of the 777X may be delayed until the end of next year, or even 2026." He also stated that Boeing needs to make changes. Last month, Emirates Airlines stated in a statement that its expansion plans were "severely impacted" by Boeing's claim of continued delays in aircraft deliveries.
Flight test failures are also believed to potentially affect Boeing's delivery expectations.
Ken Herbert, an analyst at RBC Capital Markets, told clients in a report on Monday that the grounding could delay the expected delivery of the 777X until 2026 and may face an extended approval period.
Shen Haijun explained, "If it is a minor modification of a certain part of the aircraft, it may take less than a year to obtain airworthiness certification, but for a brand new model like the 777X, it will take at least 1-2 years at the earliest
In early July, the former CEO of the company, Dave Calhoun, stated in a conference call with investor analysts that as of the end of July, the 777-9 test fleet had conducted over 1200 flights in a wide range of regions and weather conditions, with a total flight time of 3500 hours. At that time, Boeing stated that it would maintain its expectation of first delivery in 2025 unchanged.
Even if flight testing resumes in the short term, the current grounding may limit investors' confidence in the project, "Herbert said.
Difficulty in delivery
Boeing's main competitor Airbus has also lowered its delivery targets for this year. The company stated in June that due to shortages of components such as engines, structural parts, and cabin interiors, it expects to deliver only 770 aircraft this year, 30 fewer than planned.
Airbus had planned to produce 75 of its best-selling A320neo models per month by 2026. However, the company recently announced that it will postpone the plan for one year. The current monthly production of A320neo is 50 aircraft.
It is reported that Airbus recently informed the airline that some aircraft originally scheduled for delivery within the next two years may also be postponed.
Airbus CEO Guillaume Faury stated during the second quarter investor conference call that the company's operating environment has actually deteriorated recently, mainly due to geopolitical tensions and specific supply chain challenges
Regarding this, Shen Haijun stated that Boeing, Airbus, including C919, all adopt a supplier system, which means that key components are independently produced, and engines, landing gear systems, and flight control systems are purchased from other companies and assembled by themselves.
Boeing's delivery difficulties are mainly due to technical failures or defects in its own designed and developed aircraft, while Airbus' delayed delivery is more of a supplier's problem, "he said.
Boeing is facing more than that.
The FAA announced on Monday (19th) that it will request an investigation into Boeing due to the sudden dive of a 787 Dreamliner in mid air in March this year, which resulted in injuries to over 50 passengers.
The FAA stated that the apparent cause of the plane's dive was the accidental movement of the captain's seat, which caused the autopilot to disconnect. The agency stated that it has received five reports of similar issues with the captain and co pilot seats of 787 aircraft, the most recent of which was in June, and two more are still under investigation.