Stops Short Of Saying Plane Will Be Delayed By IAM Stike

Boeing stopped just short of confirming Tuesday the 787 program will face further delays caused by a machinists strike... a scenario most in the industry view as an inevitable certainty.

Reuters reports Randy J. Tinseth, VP of Boeing's Commercial Airplanes division, told reporters in Tokyo, "Frankly, we do not know when the strike will end. As soon as the strike does end, our operations will normalize... we then will be able to reassess our production, deliveries and program schedule for the 787 at that time."

Japan Airlines and All Nippon Airways had already announced they expected delays in receiving their Dreamliners after the start of the strike by 27,000 members of the International Association of Machinists and Aerospace Workers September 6.

Japan has been a great market for Boeing. A vast majority of airliners in use in Japan are Boeing models. All Nippon Airways was the first airline to order the 787, and its CEO got a five-minute standing ovation from Boeing employees at the 787's public unveiling in July of last year.

Now, the first actual deliveries will be at least 15 months late... and that's a pre-strike estimate.

The frustration caused by the strike is shared in Japan's industrial sector. Kawasaki Heavy Industries, Mitsubishi Heavy Industries and Fuji Heavy Industries all have roles in manufacturing components for the 787.

Nicole Piasecki, Boeing Japan's President, took a philisophical tack, noting the complexity of an airliner development program.

"At the end of the day this program has sold 900 aircraft," she told reporters. "So we have every bit of confidence although the pay-back period will be longer."

FMI: www.boeing.com