Boeing has pushed back delivery of its first 787 Dreamliner by several weeks - a widely expected decision but also the latest in a series of embarrassing glitches that have disrupted production of the hotly anticipated aircraft.
The postponement of the carbon-composite plane, already more than two years behind schedule, is attributed to a delay in the availability of a Rolls-Royce engine needed for the final phases of flight testing.
"The plane is a show-me plane at this point and I think everyone knows that," said Alex Hamilton, managing director with boutique investment bank EarlyBirdCapital. "I'll believe it when I see it."
The US planemaker now expects to deliver the first carbon-composite plane to Japan's All Nippon Airways Co Ltd (ANA) by the middle of the first quarter of 2011.
Boeing, the second-largest plane maker after Airbus, said in July its delivery schedule might slip from the fourth quarter of 2010. The company blamed "instrument configuration" and inspection work.
Early trading on news of the latest delay but by afternoon had firmed to $62.97, up $1.65 or 2.7 percent, on the New York Stock Exchange.
Boeing has taken 847 orders for the Dreamliner, which lists for $150 million to $205.5 million depending on the model, making it the company's best-selling airplane at this stage in development. Boeing gets paid for planes at delivery.
The delay comes four weeks after the Rolls engine, a Trent 1000, blew up at a test site in Derby, central England, forcing the company to temporarily close the facility.
"The delivery date revision follows an assessment of the availability of an engine needed for the final phases of flight test this fall," Boeing said in a statement late. "Flight testing across the test fleet continues as planned."
Boeing added it was working with the British engine maker to ensure engines were made available as soon as possible, but the delay would not affect its financial outlook.
A Rolls spokesman said it was "working closely with Boeing to expedite delivery". Rolls added that its engine supply issues were "unrelated to the test bed event which occurred earlier this month" and that none of its engine test programs had suffered any delays.
Aviation experts said the latest delay could give Boeing time to smooth out kinks in its global supply chain, which features an unprecedented number of contributors.
Airlines like the concept of the twin-aisle, mid-sized plane, which can carry about 250 people very long distances.
But production has been delayed five times, and the first flight has been postponed six times, due to a shortage of bolts, faulty design and a two-month strike at its factory. The plane made its first test flight on December 15th, 2009.
Rival Airbus has been attracting buyers for its competing A350 plane, which will also be made primarily from carbon-composite materials.
ANA called the delay "regrettable" and said it was eager to know when Boeing would be able to deliver its second 787. ANA has ordered 55 of Boeing's latest jetliner, eight of which the planemaker has promised to deliver by April 2011.
Reuters