Boeing delays 787 debut to 2009
CHICAGO (AP) - April 9, 2008 The newest delays push the 787's schedule back approximately
another six months and mean the aircraft touted for its potential
to be more fuel-efficient than other large jets is now more than a
year behind its original schedule.
The first test flight now isn't expected to take place until the
fourth quarter as Boeing builds more time into the schedule to
reduce the risk of further delays. The company had initially
planned to begin test flights last August or September and deliver
the first plane to Japan's All Nippon Airways this May - a delivery
it had recently rescheduled to early 2009.
The fourth delay with the 787, coming less than three months
after the last one, further undermines Boeing's credibility on the
much-hyped program and also is a setback to the more than 50
airlines that have placed nearly 900 orders for the top-selling
plane. Buyers are likely to seek compensation for the delays.
The 787, Boeing's first newly designed jet since airlines
started flying the 777 in 1995, will be the world's first large
commercial airplane made mostly of carbon-fiber composites, which
are lighter, more durable and less prone to corrosion than more
traditional aluminum. Boeing says it will be cheaper to maintain
and offer greater fuel efficiency and more passenger comforts than
comparable planes flying today.
But the unprecedented plan to assemble a jet from components
manufactured largely by other companies has run into multiple snags
involving outsourcing problems involving contractors in numerous
countries.
The company said that while significant progress has been made
assembling the first airplane, it is rescheduling the first flight
"due to slower-than-expected completion of work that traveled from
supplier facilities into Boeing's final assembly line,
unanticipated rework and the addition of margin into the testing
schedule."
Boeing now anticipates delivering a total of 25 of the new
airplanes in 2009, down sharply from the originally planned 109.
"Over the past few months, we have taken strong actions to
confront and overcome start-up issues on the program, and we have
made solid progress," said Scott Carson, president and CEO of
Boeing's Seattle-based commercial airplanes unit. "Nevertheless,
the traveled work situation and some unanticipated rework have
prevented us from hitting the milestones we laid out in January."
The company said research and development costs will likely
increase because of the latest delay but it expects no change to
2008 earnings guidance. It said it will disclose more financial
details when it reports first-quarter earnings on April 23.
Citing evidence of what it said is substantial progress, Boeing
said it will power up the first aircraft by the end of June and
also begin final assembly of the third and fourth 787s. It also
revised the scheduling of the different 787 models, saying the
larger 787-9 now will follow the original 787, with first delivery
planned for 2012, while the shorter-range 787-3 that originally was
pegged for a 2010 delivery will be pushed back behind the 787-9.
Cai von Rumohr of Cowen and Co. said the latest delay had been
expected but it's unclear whether the program's schedule is likely
to slip again until Boeing provides more details. "We continue to
believe that the critical milestone for determining whether all the
bad news is on the table is apt to be a week or two after first
flight," he said in a note to investors.
The analyst said Boeing could face extra costs exceeding $4
billion because of the delays and late penalties to the airlines.
The company earned $4.1 billion in 2007.
Boeing shares rose $3.14, or 4.2 percent, to $78.16 in morning
trading.
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