Boeing Faces ‘Terrible Teens’ Scenario with Early 777-9s

Boeing faces a 787 “Terrible Teens” scenario with its early-build 777-9s because of the large amount of change incorporation required across the 30-plus 777-9s that have been built since 2019.

These aircraft were assembled then put into storage as the FAA initiated a deep-dive scrutiny following the two 737 Max crashes in October 2018 and March 2019. The second crash resulted in a 21-month grounding when multiple investigations revealed that the FAA had transferred an unprecedented level of authority to Boeing for approvals and inspections through a process in which Boeing employees became FAA representatives while still paid by the company.

Boeing management pressured the organization designation authorization representatives to approve designs, the probes revealed. One of the designs, the Maneuvering Characteristics Augmentation System, or MCAS, was revealed to be the root of the two 737 crashes.

The fallout created a deep-dive review by the FAA for the certification process of the 777X, which was targeted to enter service in January 2020. Now, it is anticipated to enter service next year.

The change incorporation, more commonly known as rework, and the rejection by early customers for early-build 777-9s were highlighted immediately before and during the Farnborough Airshow.

However, readers of LNA learned of these developments in a May 3 story.

The Terrible Teens

Boeing has progressively incorporated changes in the 777 over the seven years since the first rollout in 2018 and flight testing began in 2019. However, change incorporation for the earliest models will require extensive rework. The newer the airplane, the less rework will be required.

CEO Kelly Ortberg said on the first-quarter earnings call that it will take years to complete the work.

LNA reported in its May 3 article that Emirates, Riyadh Air, and Qatar Airways didn’t want the early aircraft due to the amount of rework that will be required. This harks back to the “Terrible Teens” of the early 787 production airplanes that required so much change incorporation that airlines declined to accept these, preferring later production airplanes. The most affected were the first 20 aircraft built—hence, “Teens” for the early aircraft and “Terrible” for the amount of rework.

It took Boeing years to sell these aircraft, at a steep discount.

In an appearance concurrent with the airshow, Emirates president Tim Clark flippantly suggested that Boeing would have to sell the 777’s Terrible Teens for as little as $10 million. The airplanes have an unofficial list price of more than $500 million, based on a recent order by the Emirates airline and the value announced at the time.

Market sources indicate that United Airlines may be interested in 20 of these early aircraft. United is known for taking advantage of weakness in the Boeing lineup. The final 777-300ERs off the production line were sold to United for a reported (but unconfirmed) $110 to $120 million because Boeing needed the sales to bridge the production between the old and new 777s.

To enjoy full access to exclusive insights about the commercial aerospace sector, subscribe to Leeham News and Analysis—an AIN Media Group platform.