Boeing's 777X could spur more 777-300ER orders

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

The launch of Boeing's 777X family at the Dubai air show could lead to additional 777-300ER orders as carriers try to secure a slice of the manufacturer's new longhaul programme, according to Wells Fargo.

"We would not be surprised if the non-launch customers announce 777-300ER orders in order to secure early 777x slots," writes Sam Pearlstein, senior analyst at Wells Fargo, in a research note today. "This could lead to even more backlog growth with future orders."

He notes "unlike" the launch orders of the 737 Max, carriers did not match their 777x orders with orders for the existing 777-300ER.

Boeing launched the 777X with a backlog of 259 orders and pledges today.

"These orders should help solidify Boeing’s leading position in widebody airplanes and lead to additional commercial airplane backlog expansion," says Pearlstein.

The analyst does not expect the 777X programmes to lead to an increase in Boeing's research and development costs increase in 2014.