Boeing delays delivery of ultra-long-range version of 777X aircraft

Boeing 777X aircraft in various stages of production at the planemaker’s production facility in Everett, Washington. (Reuters)
Updated 15 August 2019
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Boeing delays delivery of ultra-long-range version of 777X aircraft

  • Boeing still grapples with fallout from the 737 MAX crisis and engine issues with the 777X
  • schedule delay could jeopardize competition with European arch-rival Airbus

SAN FRANCISCO/SINGAPORE: Boeing has pushed back the entry into service of an ultra-long-range version of its forthcoming 777X widebody, the US planemaker said on Wednesday, as it grapples with fallout from the 737 MAX crisis and engine issues with the 777X.
The fresh delay comes as the grounding of Boeing’s money-spinning 737 MAX single-aisle entered a sixth month in August, and as the world’s largest planemaker faces engine-related delays on the 777X widebody that have pushed the first flight of the 777-9 into 2020.
The delay in the slower-selling, longer-range 777-8 will hamper Boeing’s ability to provide a plane in line with the schedule for Qantas Airways’ plan for 21-hour non-stop Sydney-London flights.
The Australian airline had hoped for first deliveries of the planes in 2022 and the launch of the world’s longest commercial flight in 2023.
“We reviewed our development program schedule and the needs of our current 777X customers and decided to adjust the schedule,” Boeing spokesman Paul Bergman said by email, adding that the manufacturer remained committed to the 777-8.
“The adjustment reduces risk in our development program, ensuring a more seamless transition to the 777-8. We continue to engage with our current and potential customers on how we can meet their fleet needs. This includes our valued customer Qantas.”
The Air Current website first reported the delays, saying the 350-seat 777-8 model revised for ultra-long-range flights had originally been scheduled to enter service in 2022 after the arrival of the 777-9 in 2020.
The decision effectively means Boeing engineers have frozen development work on the ultra-long-range version of the 777X. The schedule delay could jeopardize competition with European arch-rival Airbus for a slice of the ultra-long-haul travel market.
Airbus, which is offering an ultra-long-range version of its A350-1000, and Boeing have already submitted their “best and final” offers to Qantas for planes capable of the 17,000-kilometer Sydney-London route, a Qantas spokesman said.
“We still expect to make a decision by the end of this calendar year,” he said.
Boeing’s proposal included a “compelling option” to help deal with the 777-8 delay because it was keen to the stay in the race, according to a source with knowledge of the matter who was not authorized to speak publicly.
An Airbus spokesman said details of its discussions with Qantas remained confidential but the A350 was a “perfect solution” to meet the airline’s needs.
To date, Emirates and Qatar Airways are Boeing’s only customers for the 777-8, having ordered 35 and 10 respectively. The Seattle Times in June reported Emirates was renegotiating its 777X orders.
Emirates and Qatar Airways did not respond immediately to requests for comment about the 777-8 delays.


Where’s the beef? Argentine cattle ranchers hope it’s heading to China

Updated 18 September 2019

Where’s the beef? Argentine cattle ranchers hope it’s heading to China

  • Surging sales to Beijing shake up global meat trade and deliver tasty windfall for Latin American giant

BUENOS AIRES: Cattle ranchers in Argentina, which recently edged out neighbor Brazil as the top exporter of beef to China, are hoping to build on that status by getting more local meatpacking plants approved by Beijing, industry officials and other sources told Reuters.

An Argentine industry group is currently in China looking to promote the South American country’s famed T-bone steaks and sirloins, while Chinese teams have recently inspected Argentine local meat plants, the sources said.

The push, after a massive spike in Argentine beef exports to the world’s No. 2 economy this year, underscores how China is looking to diversify its protein supply, shaking up the global meat trade as African swine fever hammers its domestic hog herd.

It is also an important windfall for Latin America’s third-biggest economy, which is battling to get out of a deep recession and facing a swirling debt crisis ahead of elections in October that will likely usher in a new government.

Argentina, which traditionally exports cheaper cuts to China, saw its beef sales to the country more than double to $870 million in the first seven months of the year, data from its official INDEC statistics agency shows.

Chinese customs data show that amounted to around 185,604 tons of Argentine beef, giving it the top share of the Chinese import market with 21.7 percent, slightly ahead of Brazil’s 21.03 percent. That volume was a jump of 129 percent against the year before.

Santiago del Solar, chief of staff to Argentina’s agriculture minister, told Reuters there were many slaughterhouses up for approval and that China was working closely with Argentine food safety body Senasa.

“We will have news in the coming months about more pork, poultry and beef slaughterhouses being approved for China,” he said, adding Senasa was doing some inspections on behalf of China using an “honor system.”

Argentina’s ranchers are now looking for more. A trade delegation is currently in China meeting with potential buyers of the country’s meat, an industry official with knowledge of the meetings said.

The person added that a Chinese team had also recently traveled to Argentina to visit local meat plants.

“The Chinese were there last week in Buenos Aires, they were doing inspections and made good progress. The plants issue is pretty good, but with China they make approvals when they want to do it,” he said.

“We are optimistic with the results. It seems they didn’t find anomalies, but yes, it depends on the time frame of the Chinese.”

The progress comes after China granted export licenses to 25 Brazilian meatpacking plants earlier this month. Brazil has also seen a surge in meat demand from China.

China’s General Administration of Customs, which approves new imports, also recently gave the green light to imports of soymeal from Argentina, following decades of talks between the two countries.

The customs body did not immediately respond to a faxed request for comment from Reuters asking about new Chinese approvals for Argentine meat plants.

A second person, a manager at a state-owned Chinese trading house, said he had met with an Argentine firm last week during the delegation’s visit. He declined to name the firm, which had met with China customs officials, but said it had already been approved for exports and was seeking further plant approvals.

Miguel Schiariti, president of the CICCRA meat industry chamber, said a Chinese team had also recently done a video-conference inspection of an Argentine plant alongside Senasa, with the aim of approving the facility for export.

“There are 11 meat plants ready to be approved and (the Chinese) are doing it one by one. But approval is taking a long time,” he said.

“These places would meet the criteria for approval, but the Chinese have always been very cautious, despite the problems they have with pork. It seems to me that plants won’t get approved before November.”