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Boeing further delays delivery of 787s

The production line at the Boeing 787 final assembly factory in Everett, Washington, is pictured on Dec. 9. PHOTO: AP

Australia's Qantas says another delay in delivery of Boeing's new 787 will slow the expansion plans of its budget subsidiary, while All Nipon Airways (ANA) -- in line to get the first plane -- called the delay "extremely regrettable."

US plane manufacturer Boeing Co ended weeks of speculation on Wednesday by announcing the inaugural flight of the 787 would be delayed up to another three months, pushing delivery of the first plane into early neat year -- the third time the plane has been delayed.

ANA, Japan's second-largest airline, which has ordered 50 of the mid-sized, long-haul jets, was originally scheduled to get the first plane in the middle of this year.

"We will work with Boeing on the revised schedule and decide how to proceed from there," ANA said in a statement sent via e-mail by company spokesman Damion Martin.

Qantas' budget subsidiary Jetstar doesn't expect to get its first 787 until May neat year -- delayed from August this year. It was to use the planes to expand its domestic operations internationally.

"In the meantime, we will look at a range of options including revised retirement dates for some of our aircraft, reallocating existing capacity and potential schedule adjustments," Qantas chief executive Geoff Dixon said in a statement yesterday.

He said the delay will have no impact on Qantas Group's earnings or the company's overall growth strategy while delaying the international plans of Jetstar "in the short term."

Qantas said it would discuss with Boeing the possibility of claiming damages for the delay, which is provided for in the contracts. Qantas has ordered 65 of the plans, dubbed the Dreamliner, has options on 20 others and purchase rights over 30 more.

Some analysts estimate Boeing faces as much as a few million dollars in penalty payments for every plane that is delivered late.

It was not immediately clear how many other 787 customers would be affected by the latest delay.

Last fall, the company said it was working on revised delivery schedules with about 15 customers. To date, Boeing said 55 airlines have placed 817 orders for the plane.

Japan's biggest airline, Japan Airlines Corp (JAL), said it is still looking into the detailed delivery schedule with Boeing, Dow Jones Newswires said. It said it will make efforts to absorb delivery delays by adjusting its fleet.

JAL has 35 orders for the 787 Dreamliners, with an option to buy 20 addition airplanes.
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