Ryanair, Virgin Blue Confirm Start-Up Delays

As the strike against Boeing by the International Association of Machinists moves into its second month, much of the focus has been on the impact on Boeing's deliveries and revenues. But with almost 27,000 workers sitting at home, no new contract talks scheduled, and five aircraft plants idled, the economic ripples are spreading.

USA Today reports at least two airlines have been forced to delay plans for new service, and others are making other adjustments, as scheduled delivery dates for new Boeing airliners come and go.

Ryanair, the Irish low-cost carrier, had scheduled 21 new flights serving Birmingham, England this month, but its new Boeing 737s didn't show up as planned. Virgin Blue, Australia's second-largest airline, is already delaying its planned December rollout of service between Sydney and Los Angeles, after learning its three new 777-300s won't be delivered on time.

Delta Air Lines had planned to bring four long-range Boeing 777s online this fall, and acknowledges that plan will be delayed.

Boeing hasn't yet offered specifics on the strike's effect on development of the 787 Dreamliner, already delayed more than a year. The company has put off its original first flight projection twice, and said there was room in the latest schedule to accommodate contingencies. Apparently the strike wasn't one of them. The Dreamliner's first flight was supposed to happen before the end of this year -- that's now unlikely. The waiting list for that plane numbers almost 900 orders.

Boeing suppliers are also feeling the effects. Barnes Group, an aerospace supplier based in Connecticut, has told investors its earlier 2008 earnings forecast is now out the window.

The IAM says it and its members are prepared for a long strike. The union is fighting for the right to bid on any work before it is outsourced by Boeing. The company says outsourcing is a management right which is non-negotiable. There's been no indication on when talks might resume.

FMI: www.boeing.com, www.goiam.com