First Flight Remains On Track For Early 2008

It looks like Boeing may not have to delay its eagerly-awaited 787 program a second time. On Tuesday, the American planemaker assured customers and investors the composite-bodied aircraft remains on track for a first flight in early 2008, and entry into service by the end of 2008.

During the webcast quarterly program update, Boeing Commercial Airplanes CEO Scott Carson added Boeing plans to produce 40 aircraft in 2008, and another 69 planes in 2009 -- numbers Boeing first quoted in October, when the planemaker announced a six-month delay to the 787 due to supplier and production issues.

Despite sticking to his guns on the revised schedule, Carson admits "significant supply chain wrinkles" continue to pose problems for the first batch of aircraft, though he notes parts shortages are easing... particularly for the specialized fasteners needed to join the plane's composite "barrel" sections.

Bloomberg reports the next milestone in the 787 program comes next month, when the first aircraft is powered on for the first time.

"This will be the next date for investors' diaries," said Banc of America Securities analyst Robert Stallard. "This is an important knowledge point, at which the company can retire a significant amount of risk on the program."

Pat Shanahan -- who was named 787 program chief October 16, one week after Boeing's announcement of the delay -- says production continues on five other test aircraft, adding all six test planes will be completed by the end of the second quarter.

"We meet daily in the factory near the first airplane," Shanahan said, to review ongoing problems and detail issues.

While he says there's cause for optimism, Shanahan added a caveat for Boeing's plans to ship 109 Dreamliners by the end of 2009 -- saying that schedule "assumes no major unknowns are uncovered in flight testing."

In related news, Boeing also said it and the FAA agreed on the 787's certification testing requirements ahead of flight testing... the first time in the company's history that's been the case.

FMI: www.boeing.com