787 deliveries now delayed until late 2009

Deliveries, which had been expected to take place in early 2009 after the last delays, will now begin in late 2009.

Boeing now aims to deliver only 25 aircraft in that year.

Boeing said that the schedule change was the result of unanticipated reworkings to the first aircraft, and also included additional margin for any issues which may arise in the flight testing program and reduce the risk of further delays.

“We deeply regret the disruption and disappointment these changes will cause for our customers, and we will work closely with each of them to minimise the impact,” said Boeing Commercial Airplanes president and CEO Scott Carson. “We have taken significant action to improve supply chain and production system performance, such as our investment in Global Aeronautica [a supplier of 787 fuselage sections], but based on our assessment, the prudent course is to proceed with a more gradual ramp up to full-rate production. ” In a conference call following the announcement of the delay, 787 vice president and general manager Pat Shanahan expressed his confidence in meeting the new program milestones.

“All our supplier partners are committed to achieving this new delivery plan,” he said.

“It reduces schedule risk and minimises the number of airplanes required to undergo rework while we conduct our flight test program. I am very confident in our ability to execute this plan. ” The delays had been foreshadowed in March by Boeing’s biggest customer, ILFC chief Steven Udvar- Hazy, who said that the manufacturer had been forced to make modifications to the airliner’s wing box.

He labelled the program “a mess” and warned that there would be a delay of at least six months.

Boeing countered this criticism by releasing a statement on March 20, saying, “It is a normal part of the development of a new airplane to discover need for improvements, and that is what we are experiencing on the 787. ” The statement said that the modification to the wing box had already been completed on the six aircraft in assembly and it would be incorporated in all future aircraft.

The latest round of delays has also affected the first delivery dates for the 787-9 and 787-3 derivatives, with first delivery of the -9 set for early 2012. The 787-3 “will now become the second derivative for the airplane family,” Boeing said in a statement, but the company did not specify a date for the delivery of the first shorter range 787.

This has led to some speculation that Boeing may either redesign the -3 or drop the model altogether. The -3 has only gathered orders for 43 aircraft from Japan Air Lines and ANA, and had been primarily designed for use on domestic routes in Japan. Some lessors had reportedly requested that Boeing increase the range of the -3 to give it transcontinental USA range, thus raising the appeal of the aircraft to customers outside of Japan.

A number of airline customers have expressed disappointment at the delay.

ANA, which is launch customer for the 787, called on Boeing to firm up its delivery timetable. “This is the third delay in the delivery of the first aircraft, and we still have no details about the full delivery schedule. We would urge Boeing to provide us with a 120 per cent definitive schedule as soon as possible,” the airline said in a statement to the Seattle Post Intelligencer on April 8.

Qantas also issued a statement shortly after the delay saying that the company had put in place contingencies to deal with it. This included a plan to lease six A330-200s for Jetstar to continue its international network expansion.

“These aircraft are the same as currently used by Jetstar for its long haul flying and will provide adequate growth for Jetstar until the arrival of the Dreamliner,” said Qantas Group CEO Geoff Dixon.

Jetstar CEO Alan Joyce subsequently told journalists on April 13 that Jetstar expects to receive its first 787s in late 2009 or early 2010.

Air New Zealand, which was to receive its first 787-9 in 2010, is also likely to seek compensation from Boeing as its aircraft will now not arrive until 2012 at the earliest.

“While disappointed, Air New Zealand has retained sufficient flexibility in its existing portfolio of leased and owned aircraft to ensure no capacity shortfall arises during this period,” said Air New Zealand’s CFO Rob McDonald.

Despite the delays to the 787 and increased research and development costs for it, Boeing remains upbeat that the delays would not materially affect its bottom line this year, with the company maintaining a strong earnings outlook.