Analyst's Report Cast Doubt On May 2008 Timeframe

One day after seeing the its stock devalued on a report of imminent delays to its upcoming 787 Dreamliner program, Boeing went on the offensive Tuesday. Acknowledging at least some of the reports are correct, the American planemaker reaffirmed its pledge the Dreamliner will deliver on-time.

Boeing spokeswoman Yvonne Leach said Tuesday the 787 will meet its May 2008 delivery date, despite some parts suppliers being behind schedule.

As Aero-News reported, Wachovia financial analyst Joe San Pietro speculated problems with several 787 suppliers -- including Mitsubishi, which is making the aircraft's wings, as well as Italian rear fuselage supplier Alenia -- could lead to delivery delays of the popular composite-bodied airliner.

Wachovia's downgraded rating resulted in a one-day, three percent drop in Boeing's stock price.

While she wouldn't comment on all the reported supplier difficulties, Leach confirmed the first center wing box -- the portion of the center fuselage that holds the wings, that traveled from Fuji Heavy Industries in Japan to Global Aeronautica in Charleston, SC last week -- was sent without several preinstalled components. Those pieces included wiring and hydraulics systems.

Leach says Boeing has contingency plans that can help suppliers ramp up, and still meet the original timeframe.

Boeing will likely rely on those plans more than it may like, however... as San Pietro noted in his analysis due to Boeing's outsourcing of most of the 787's airframe, "Boeing has no internal capability to manufacture the major components."

That means the planemaker has little leverage over its suppliers... and leaves Boeing in a weakened position to threaten suppliers if they can't meet the deadline. That could very well spell trouble down the road.

For now, though, Boeing remains adamant its Dreamliner -- sales of which over the past two years have led to a resurgence for the planemaker -- will not fall prey to the same kinds of production delays that European rival Airbus has experienced with its A380.

We'll see... as Boeing is rapidly nearing crunch time for the new midsize jet, which is scheduled to later this year.

FMI: www.boeing.com