Analyst Aboulafia lauds 777X, berates Boeing for creating ‘ill will’

Top aviation-industry analyst Richard Aboulafia said Wednesday that Boeing’s 777X program could give the jet-maker a significant lead over rival Airbus in the decade ahead. But he also warned that Boeing management is running big risks with a “penny-wise and pound-foolish” strategy of squeezing its labor unions and suppliers. Stan Deal, Boeing vice president in charge of the supply chain, later defended the company’s pressure on suppliers to cut their prices. Aboulafia said the 777X is a winning concept in a size and performance category where Airbus doesn’t yet have a competitive candidate. “Airbus faces a real challenge to respond to 777X. They are going to have to find $12 billion or so to do something,” he said, adding that failure to do so could result in “a permanent Boeing advantage.”