Boeing launches new freighter jet with Qatar Airways

Boeing launched a new freighter jet on Monday, a major deal with Qatar Airways, in a boost to the still struggling US aviation giant.

The deal with the Middle Eastern carrier was unveiled at a White House ceremony attended by top US and Qatari officials, and includes the sale of X freighters, plus options for 16 more planes in the latest incarnation of Boeing's storied dual-aisle 777 line.

Boeing said the $20 billion value of the Qatar Airways deal is the largest freighter commitment in the company's history.

Boeing said that the airline had reached an agreement worth nearly $7 billion for a firm order of MAX planes and purchase rights for another 25 planes.

Commercial aviation experiences a mixed recovery from the depths of the coronaviruses downturn and the agreements give a lift to Boeing, which continues to struggle with quality control problems.

Boeing serves a global need that will be coming back in a significant way, according to David Calhoun, Chief Executive of Boeing, at the signing.

Airbus canceled the airline's multi-billion dollar order of 50 new single-aisle planes earlier this month because of Qatar Airways' decision to ground its A 350 widebody aircraft.

Today marks a great day in the strong relationship between Qatar Airways and Boeing, said Akbar Al Baker, chief executive of Qatar Airways.

We want to launch the most significant new freighter aircraft for a generation, and the team at Boeing always strives to meet and exceed our expectations. The signing ceremony came as Qatari spokesman Sheikh Tamim bin Hamad al-Thani visited the White House, where President Joe Biden was expected to shore up the energy back-up for European allies as Washington pressures Russia over the Ukraine crisis.

The company reported a $4.1 billion loss last week because of problems with its 787 Dreamliner plane, which resulted in $3.8 billion in one-time expenses. Due to production problems, the company has suspended deliveries on the model.

The 787's woes have dampened the comeback of Boeing, despite a surge in deliveries of the MAX last year, which was cleared for service in late 2020 after a 20 month grounding after two fatal crashes.

Boeing had originally launched the program on the 777 X in 2013 with a plan to bring the jet into service in 2020. The timeframe has been repeatedly pushed back. Boeing expects to deliver the first jets for commercial service in 2023.

Boeing said the 777 x cargo planes that are connected to Monday's deal with Qatar Airways will be delivered in 2027.

Richard Aboulafia, an aviation expert at AeroDynamic Advisory, said cargo demand is about the only bright spot in the dual-aisle plane market, where activity has remained more depressed compared to single-aisle plains.

The 777 X jets will be assembled at Boeing's Everett, Washington complex and employ engines produced by General Electric, which will also be assembled in the United States, US Commerce Secretary Gina Raimondo said.

She described the agreement as a testament to the thriving trade relationship between the United States and Qatar. Boeing said that it will sustain 35,000 US jobs and bolster suppliers across 38 states with the 777 X Freighter order.