Boeing 787 Challenges

Speaking at the Singapore Air Show, Boeing’s Vice President, Marketing, Randy Tinseth spoke about the 787 Dreamliner and the challenges that lay ahead.

“We have not finished the production plan yet. We are waiting until the end of the first quarter to finish the production plan and then we can make better projections on deliveries for 2009 and beyond,” Tinseth said.

All images courtesy of Boeing

Further to the original guidance provided here last week (click here), it appears that Boeing will indeed target the deliveries for 2009 to be at the lower end of any projection. Based on information available from Wall Street analysts, I’ve set a preliminary bracket of 40-50 airplanes by the end of next year. This would equate to approximately four 787’s being produced each month, allowing for a ramp up in production after 2010.

In comments to Reuters, Tinseth made it clear that Boeing was not happy at having to let customers down, especially on its all new, high-tech flagship airplane.

“We really feel for our customers, we hate missing those commitments.“

“We are now in a position with our suppliers where parts are manageable, so we have a confidence in our plans. But it’s not going to be easy.“

Tinseth’s comments point to a key area overlooked by many of the usual Boeing critics. In developing the largely composite 787, using an equally new supply chain and partners has been grossly underestimated and such critics have been all to quick to point the finger of blame solely at Boeing’s door without fully understanding the complexities in the execution of this new logistical system.

Should a further delay be ruled out?

Not at all - its too complex a project to underestimate, despite the second flight test 787 having less travelled work to contend with than the first. Equally, that does not mean Boeing is somehow “destined” to slip on this new time frame again.

However, given the rescheduling, Boeing has a window of opportunity to get the airplane as service ready as possible during certification. That begins with the first flight, due before the Farnborough Air Show. While its unlikely to make an appearance at the show itself, knowing its airborne will be a big relief for Boeing and its customers.

All eyes will then turn to Airbus, who equally have an arduous task in getting the rival A350XWB through the same development and testing while questions about that airplane remain unanswered and unchallenged.

5 comments February 20th, 2008