Boeing may be forced to announce further delay to 787 Dreamliner production date

BOEING COULD announce a third delay for its 787 Dreamliner when it issues an update on the project at the end of this month.

BOEING COULD announce a third delay for its 787 Dreamliner when it issues an update on the project at the end of this month.

The US aerospace group, which lost out to EADS last week on the controversial $35 billion US air force refuelling tanker contract, said it was assessing the progress of the 787, its first all-new commercial jet since the 777 entered service in 1995.

"We are working towards a schedule that we had outlined in January," said Boeing. However, it left open the possibility that the company might report further delays when it gives the update.

Goldman Sachs, meanwhile, said it expected the first deliveries of the 250-300-seat jet to be pushed back to the third quarter of 2009, from Boeing's current target of "early 2009".

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"[ Boeing] continues to underestimate the amount of work required on the 787," said analyst Richard Safran. "We think Boeing will notify suppliers of new production targets shortly, motivated by the need to keep delivery commitments to airlines."

The 787 is Boeing's most successful new aircraft, with 857 orders in place, worth about $140 billion. New orders have continued to flow in spite of the programme being delayed, first in October and again in January.

A further delay would be both embarrassing for the company and irksome to Boeing's customers, who are starting to grumble about pressing for compensation from the aircraft maker.

After the airliner's second delay in January, Qantas, the Australian flag-carrier, said it would seek damages. International Lease Finance, the world's leading aircraft leasing group, said it was also looking for compensation.