Goldman Sachs: 787 faces additional three-month delay
Monday March 10, 2008
Rumors of further delays to the first flight of the 787 gained momentum Friday as Goldman Sachs indicated the world may have to wait at least an additional three months.
In a client note, GS analyst Richard Safran said, "Our sources indicate 787 power-on, scheduled for March end, may be delayed until the end of June. First flight, expected three months after power-on, may be further delayed. We now think deliveries will start in the third quarter of 2009 versus the current 'early '09' target."
Boeing spokesperson Yvonne Leach told ATWOnline Friday that the manufacturer has committed to a comprehensive assessment of 787 production and that the report is due at the end of March. She added that the plan still is "power-on early April and fly late June." Speculation among airline customers has been that a one-month delay may be coming.
Boeing's original intention was to fly the 787 last September and deliver the first to ANA this May. The current schedule has first delivery slated for the first quarter of 2009.
Safran told clients that "final assembly of 787s 4 through 6 are also delayed, which is significant as we think Boeing needs six aircraft in flight test for 11 months." Accordingly, GS is lowering its 2009 delivery forecast to 50 units from 80. The company originally planned to deliver 109 787s in 2009. Safran added that "in our view, Boeing continues to underestimate the amount of work required on the 787." He pointed the finger at wiring issues.
The manufacturer announced the first delay of six months in October after first flight had slipped past the expected September date. The second delay of three months was announced in January. As recently as last month it touted the delivery of the fourth 787 to Everett for final assembly, with VP-787 Final Assembly and Change Incorporation Steve Westby saying there was "significantly less traveled work on this [fourth] airplane". Two weeks prior, Boeing Commercial Airplanes President and CEO Scott Carson told a New York investors conference that the supply chain was "sorting itself out in a hurry".
Further delays will affect airlines seriously and Boeing would face significant penalties. At the recent Singapore Air Show, ILFC CEO Steven Udvar-Hazy told Reuters that the lessor had "put Boeing on notice that there will be some very serious talks" regarding compensation.
by Geoffrey Thomas
ATWOnline
Monday March 10, 2008
Rumors of further delays to the first flight of the 787 gained momentum Friday as Goldman Sachs indicated the world may have to wait at least an additional three months.
In a client note, GS analyst Richard Safran said, "Our sources indicate 787 power-on, scheduled for March end, may be delayed until the end of June. First flight, expected three months after power-on, may be further delayed. We now think deliveries will start in the third quarter of 2009 versus the current 'early '09' target."
Boeing spokesperson Yvonne Leach told ATWOnline Friday that the manufacturer has committed to a comprehensive assessment of 787 production and that the report is due at the end of March. She added that the plan still is "power-on early April and fly late June." Speculation among airline customers has been that a one-month delay may be coming.
Boeing's original intention was to fly the 787 last September and deliver the first to ANA this May. The current schedule has first delivery slated for the first quarter of 2009.
Safran told clients that "final assembly of 787s 4 through 6 are also delayed, which is significant as we think Boeing needs six aircraft in flight test for 11 months." Accordingly, GS is lowering its 2009 delivery forecast to 50 units from 80. The company originally planned to deliver 109 787s in 2009. Safran added that "in our view, Boeing continues to underestimate the amount of work required on the 787." He pointed the finger at wiring issues.
The manufacturer announced the first delay of six months in October after first flight had slipped past the expected September date. The second delay of three months was announced in January. As recently as last month it touted the delivery of the fourth 787 to Everett for final assembly, with VP-787 Final Assembly and Change Incorporation Steve Westby saying there was "significantly less traveled work on this [fourth] airplane". Two weeks prior, Boeing Commercial Airplanes President and CEO Scott Carson told a New York investors conference that the supply chain was "sorting itself out in a hurry".
Further delays will affect airlines seriously and Boeing would face significant penalties. At the recent Singapore Air Show, ILFC CEO Steven Udvar-Hazy told Reuters that the lessor had "put Boeing on notice that there will be some very serious talks" regarding compensation.
by Geoffrey Thomas
ATWOnline
