Air Lease boss sees risk to Boeing 777X project from delays

Boeing suffered a further setback to its delayed 777X jetliner project on Monday as the influential founder of Air Lease (NYSE:AL) Corp said its future could be at risk.

The U.S. planemaker last month pushed back first delivery of the world’s largest twin-engined jetliner by more than a year to 2025, five years after it was originally due.

Plans to update the 777 mini-jumbo with a larger 400-seat version using more efficient carbon-fibre wings and new systems have been hit by certification problems, industrial delays and waning demand for the biggest jets especially since COVID-19.

Asked if he now saw risks to the future of the 777X programme from the delays, Steven Udvar-Hazy, executive chairman of Air Lease Corp , said “yes”.

Pressed on whether it was possible that the whole program could be cancelled, the aircraft-leasing veteran said that would depend on what the Boeing (NYSE:BA) board looks like in 18 to 24 months.

“What I’m saying is that those decisions whether to continue with the programme or not, it will probably not be made by this board of directors anyway,” Udvar-Hazy, one of the industry’s most influential decision makers, said at the Airline Economics conference in Dublin.

Announcing the latest 777X delays with the company’s earnings last month, Boeing Chief Executive Dave Calhoun said, “We’ve got to give ourselves the time and freedom to get this right”.