Delayed Dreamliner

Boeing is delaying initial deliveries of its 787 Dreamliner by six months, blaming suppliers for tardiness in completing their work. The first 787 delivery to All Nippon Airways is now scheduled for late November or early December 2008, rather than the original date of May. Boeing has 710 Dreamliner orders worth $100 billion from 50 air carriers. ANA and British Airways, another early 787 operator, said the delay would have little or no impact on their operations. First flight is now anticipated around the end of first quarter 2008. Early last month, Boeing announced a delay in the planned first flight of the 787 citing ongoing challenges with out-of-sequence production work, including parts shortages, and remaining software and systems integration activities. The company said the financial impact of the delay would not be material to earnings and that its earnings guidance for 2007 and 2008 remained unchanged. "While we have made some progress over the past several weeks completing work on our early production airplanes and improving parts availability across the production system, the pace of that progress has not been sufficient to support our previous plans for first delivery or first flight," said Scott Carson, president and CEO of Boeing Commercial Airplanes. "We deeply regret the impact these delays will have on our customers, and we are committed to working with them to minimize any disruption to their plans.” Boeing Chairman, President and Chief Executive Officer Jim McNerney said "Notwithstanding the challenges that we are experiencing in bringing forward this game-changing product, we remain confident in the design of the 787, and in the fundamental innovation and technologies that underpin it."