Emirates’ Cancelled 777X Order

Despite Emirates being among the largest customers for the upcoming 777X, the airline cancelled orders for the aircraft.

Emirates’ relationship with the 777X is crucial, as the jet is set to play a key role in achieving the Dubai-based carrier’s long-term growth plans.

However, despite the importance of the jet, the relationship between the airline and aircraft has been far from smooth sailing, with cancellations, threats and more all occurring.

So, why were orders cancelled, and what has happened since, including new orders, empty threats, and more?

A Review & Cancellation Arrives

Talk of Emirates negotiating its 777X deal emerged in June, as reported by Dominic Gates of The Seattle Times, with the fate of the 150-order hanging in the balance.

The report suggested that the airline was speaking with Boeing over the deferral of part of its mammoth order for the 777 replacement and instead opting for the smaller 787 Dreamliner for a portion of the deal.

Clark said that the renegotiation was likely to take effect at that year’s edition of the Dubai Airshow, which would be a blow for the long-haul product at the time, as it was not only trying to secure certification but also to attract further customers.

By November, the airline confirmed the reduction of its order for the Boeing 777X, finalising a purchase for 30 Dreamliners, as expected.

The reduction brought the total number of 777X orders remaining at the time down to 126, following delays encountered in the latter stages of the 2010s for the program, driven by engine and other technical struggles during the testing phases.

Reviews Take Place During Pandemic

During the height of the COVID-19 pandemic, Emirates was forced to ground the vast majority of its fleet, including the world’s largest passenger plane, the A380.

As travel demand plummeted, Emirates was put into preservation mode, with its focus on ensuring it did not lose money during one of the most challenging and unpredictable times in the company’s history.

With demand not being present, the carrier was also forced to evaluate its future order book. If things do not improve soon, Emirates will need to have backup plans in place, which may involve, at worst, the cancellation of orders or, in better circumstances, possible deferrals.

By June 2020, the airline’s president spoke with Bloomberg, stating that the company was not yet confident enough that its economics, cash flow, and bottom line would put it in a position to purchase hundreds of aircraft.

As a result, the airline said it would need to focus solely on surviving the present, and this meant internal discussions were already ongoing about how to keep cash where it needs to be and what this meant for aircraft orders, which could be cancelled or deferred.

At the time of the pandemic, Emirates had hundreds of planes on order, despite not yet having taken delivery of its final Airbus A380. However, the airline expressed gratitude that planemakers understood the situation its customers were in.

Ultimately, this was a period during which considerable consideration was given to the future of the airline’s operations, and that meant a thorough review of the fleet.

Order Threats Continue

Throughout the 2020s, each delay to the 777X program was met with Emirates voicing its own displeasure with the situation regarding the aircraft.

In May 2024, the airline’s Chairman expressed frustration during the Arabian Travel Market concerning the revised delivery timeframe; with hindsight, this was not entirely accurate.

While these negative comments were shared with much of the focus on the lack of a firm timeframe for delivery because of Boeing’s inability to meet deadlines, it ultimately was not the first time a similar situation had taken place.

Several times in the years before Emirates, notably Sir Tim Clark, expressed frustration with the program and threatened to cancel aircraft orders for the long-haul jet if a resolution to the delays could not be found.

These threats of cancellations did not eventuate in the end, and to cover the Dubai-based carrier, it would simply order more aircraft from the program. However, its comments were loud and shared across the industry, highlighting what many other airlines would have been feeling but were not brave enough to share in the public domain.

A Massive Deal In 2023

After much deliberation and following threats from the airline’s President, Sir Tim Clark, a landmark agreement was signed at the 2023 Dubai Airshow.

The contract solidified the 777X’s position in the airlines’ business, with Emirates purchasing an additional 55 777-9 models and 35 777-8 models.

With this sizable deal, the airline’s total commitment to the 777X increased to 205 units, with additional deals also announced for 202 GE9X engines, bringing the total to 407. This is the engine to power the new Boeing widebody.

At the time of the purchase, Emirates stated that the new aircraft would help connect the carrier with more cities than ever before and, more importantly, support the Dubai Economic Agenda D33, which key officials had established.

The economic agenda aims to add 400 cities to the foreign trade map over the next decade, and with that, the Emirates’ fleet is expected to reach around 350 by the early 2030s; new jets, such as the 777X, will play a crucial role.

Given that Emirates is already the largest operator of the 777 aircraft, another new purchase seemed possible, with the business possibly leveraging its frustration to secure better terms in a contract.

The 777X will form the backbone of this company’s long-haul fleet from the late 2020s through the 2030s and beyond. Although it hasn’t always been smooth sailing, as highlighted by the A350 order changes, this has been a common theme across the airline’s history.