Another Boeing 787 Dreamliner Delay

Boeing's 787 Dreamliner launch has again been delayed after further problems with its suppliers and "unanticipated rework". Boeing's bad news comes at a time when it and the European aircraft maker Airbus are in a heated battle for supremacy of the commercial aircraft market.

The 787 Dreamliner, Boeing's new passenger jetliner in over a decade, is designed to use high-tech plastic composites instead of aluminum. In an effort to reduce its gross weight, the 787 Dreamliner's fuselage and wing are made of composites such as carbon-fibre. As the plane getting lighter, Boeing claims the 787 Dreamliner will consume 20% less fuel than similar-sized planes already on the market.

The first flight of Boeing 787 Dreamliner, a fuel-efficient aircraft seen as a key to Boeing's future, will move into the 4th quarter of this year, and first delivery is now planned for the 3rd quarter of 2009, more than a year after the original target of May this year. The $150 billion project is now at least 15 months behind schedule. There is also an indefinite delay for its short-range model, favored by Japanese airlines. It is the latest in a series of delays for the 787 Dreamliner.

Boeing said the new schedule "includes additional schedule margin to reduce risk of further delays on the program" and provides "the addition of margin into the testing schedule".

The delay of the Dreamliner will cost Boeing billions of dollars in compensations to airlines and in canceled orders. As European Airbus got hit with many delays with its Airbus 380, its folks sure are getting a kick out of Boeing's bad news.

The Dreamliner's first customer, All Nippon Airways, said it was "extremely disappointed" it would not receive its 787s until the 3rd quarter of 2009. Airlines are lining up for compensation after Boeing's announcement. Air New Zealand and Air India said they will seek compensation. All Nippon Airways and Japan Airlines say they both plan claims after assessing the impact. Virgin Atlantic is negotiating with Boeing about compensation or replacement aircraft. A spokesman for British Airways said: "We are talking to Boeing about compensation, the implications of this delay and the options available to us." Australia's Qantas Airways, the 787's second-biggest buyer with 65 plane orders, said it has already put in a claim for compensation after previous delays.

More than 50 airlines have placed 892 orders (netting $145 billion) for the Boeing 787 Dreamliner, but it is unclear when these new aircrafts will be delivered. Boeing had said it was building up to full production more slowly than it had anticipated. Boeing aims to build some 2000 Dreamliners over the next two decades.

In commenting the delay, Boeing's CEO Scott Carson said, "It is our actions, not our words, that will get this state-of-the-art airplane into the air". But, how much a slipped delivery deadline undermines Boeing's credibility remains to be seen.

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