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Boeing is expected to announce today that its 787 Dreamliner has been delayed by 18 months, a setback that will cost the company billions of dollars in compensation to airlines.
Sources close to Boeing said the American aerospace giant will admit that the revolutionary aircraft is unlikely to enter service until the end of 2009.
The Dreamliner has taken orders worth more than $150 billion (£76 billion). It was scheduled to enter commercial service next month but this initially slipped to early 2009 and has now been delayed again.
Boeing is also thought to be ready to postpone or even scrap one of the three variants of the aircraft to enable its engineers to focus on solving existing problems.
The likely victim will the 787-3, a high passenger density model designed for the Japanese market. The 787 is a radical new design because its fuselage is entirely made out of composite materials — essentially carbon fibre. Boeing has struggled to assemble the aircraft due to its complexity and it has yet to fly.
The delay will affect all airlines that have ordered the 787, including British Airways and Virgin Atlantic. The delay is particularly bad for BA as it means the British flag carrier might not get the aircraft in time for the 2012 Olympics. BA needs the 787 to increase capacity and reduce operating costs.
Airlines are likely to demand billions in compensation from Boeing and the company will also have to allocate huge resources to prevent the problems worsening. Its share price has already fallen 25 per cent since the 787 delays were first announced, wiping more than $18 billion from Boeing’s value. Senior executives are expected to face calls to resign. Doug McVitie, managing director of Arran Aerospace, the aviation industry analyst, said: “This is a massive blow to Boeing’s credibility because it is drip feeding bad news, which gives the impression it does not have a handle on the problems.”
Boeing said it would give an update on the programme today.
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In view of the major technical problems that the 787 has experienced due to the use of new materials in its construction, I think I will avoid flying on this aircraft for a number of years.
As with the DC10, 747, Comet, A320 and many others, there were a number of crashes due to design faults.
Edna Burbridge, Engreve, France
Noel Falconer, France,
How on earth can you conclude that BA management should be "burnt" due to this problem?
Boeing and British Airways are totally seperate companies. BA is simply a customer, it's not BAs fault that the new airliner is going to be delayed.
I really wish the media would stop mentioning BA all the time, when it's got nothing to do with them...
Dave, Chelmsford, Essex
I don't think BA have to woryy about increasing capacity through buying the dreamliner when fewer people are going to choose not to fly BA after T5 and previous fiasco's.
Andrew Wakeling, London, uk
Presumably also the final kibosh on any chance of Boeing appealing against the USAF tanker decision?
Simon Bee, Wokingham, UK
One has to wonder about the Boeing sales force that went out and collected this huge order book. Are they screaming at others within Boeing for 'hanging them out to dry,' or are others in Boeing screaming at them for 'over-promising?'
Chris, Nashua, New Hampshire
The 787 and the 28,000 pieces of luggage are going to arrive on the same day.Good planning.
ron, toronto,
T5 shambles + pilots' strike + fuel costs + critical fuel-saving airliner 18 months late
= bum management at British Airways.
Time for a LOT of changes - starting at the top!
Noel Falconer, Couiza, France
Dreamliner - or simply nightmare? Boeing, Boeing, BONG!
Doug, Basel , Switzerland
Airbus and Boeing have both mis managed new projects. One of the things I have noticed working for both is they are often reluctant to employ adequate technical personnel. Anybody with experience that raises concerns about timescales/budgets/headcounts is just being negative. If you think the experts (contractors) are expensive wait til you find out how much the amateurs cost you. The you'll bring in the experts to fix up the mess.
Andrew, Hamburg,
It may not have been Boeing themselves publicly gloating over the delays in the A380, but there was a lot of negative comment coming from the usual mob of Airbus-bashers when they had to announce their delays.
I wonder if the same people would care to comment now.
Personally, I hold no particular favourite between the two, but think that the two companies are excellent competitors. It's a shame that MD no longer add that bit of spice to the mix too.
The anti-Airbus and anti-Boeing vitriol that comes from those on the periphery of the industry (and possibly society too) does not reflect the accomplishments of these companies.
When the 787 takes up the reigns of commercial service, it will no doubt be a fantastic aeroplane - shame that they let the public choose the name.
Of course, I shall maintain my stance of never flying in the Mark 1 of anything.
Paul M, Puerto del Rosario, Spain
I see the Dreamliner is living up to its name - just a dream and not reality! BA should really have learnt and chosen the Airbus A350.
Bill Potter, Telford, England
"BA needs the 787 to increase capacity and reduce operating costs." Does anyone in charge at that airline get to the section in the manual that covers "Improve quality" or "enhance customer experience" or even just "moving luggage from A to B without touching Italy"?
David Masu, Zürich,
It's curious that the delay in the Dreamliner does not attract the same media hysteria as when Airbus suffers a delay, some thing normal in extremely high techology developments. Perhaps it's the anti-European thing that the press revels in? A pity because British industry makes a signficant contribution to building the Airbus.
John Kinsella, Paris, France
It couldn't happen to a nicer lot.
How much did Boeing pay to the american authorities that forbad Concord overland flights and thus destroyed its commercial viability?
Stephen Green, Cotignac, France