Boeing delays 787 launch again

LONDON, England (CNN) -- Boeing has announced a further delay to the first flight and delivery of its 787 Dreamliner after struggling with production problems.

The maiden flight, that was delayed by six months last October, has been put back by a further three months to the end of the second quarter of 2008.

The first customer, All Nippon Airways, will not receive its first 787 until early 2009, nine months later than originally planned.

Boeing assured customers that the design and technology of the airline remain sound. Scott Carson, President and CEO of Boeing Commercial Airplanes blamed the set back, once again, on "start-up issues in our factory and in our extended global supply chain."

Carson told reporters that the original schedule to deliver 112 aircraft (revised to 109 last year) by 2009 had been, until recently, "credible and achievable". This is now looking unlikely.

"We are deeply disappointed by what this delay means for our customers, and we are committed to working closely with them as we assess the impact on our delivery schedules," Carson added.

Problems arose for Boeing when it was forced to complete production work on the airplane that was originally intended to be done by its suppliers. Boeing says it will now assess suppliers' performance in delivering more complete assemblies on airplanes in the future.

Pat Shanahan, the 787 Vice President and General Manager, has also appointed an experienced team to manage the complexities of the 787's global supply chain.

Ninety days into the job, said Carson, and "Shanahan has been taking actions aggressively. He has a firm grip on what needs to be done."

Despite delays, demand has remained strong for the 787. Total orders have reached 817 from 55 customers around the world. British Airways has ordered 24, 45 are on order for Qantas, 20 for Singapore Airlines, 68 for Northwest Airlines and 30 for Qatar Airways.

Boeing designed the 787 believing that more passengers will want smaller jets for point-to-point travel, rather than long-haul flights to major airports that Airbus' A380 is designed for.

The aircraft uses carbon-fibre composites, which are lighter and more durable than traditional aluminum. As a result of its composite design the 787 also features lower cabin pressure and a 20 percent improvement in fuel use.

First Choice ordered 12 Dreamliners in 2004 and says it is working closely with Boeing to understand whether delays to the production schedule will affect the delivery date of its -- and the UK's -- first 787. A First Choice spokesperson confirmed this is likely to be in Spring 2009.

In a statement, Air New Zealand, that ordered eight 787s in 2004, said that in the event of delay, the airline has flexibility in its aircraft portfolio to ensure it can support existing demand and expansion plans.

Boeing is currently in fierce competition with European rival Airbus. This week Airbus announced that it beat Boeing on deliveries in 2007. But Boeing surpassed Airbus on orders, logging 1,413 net orders last year, compared to Airbus's 1,341. The increase in orders for Boeing was driven largely by demand for the 787.

The Dreamliner setback is likely to affect Boeing's 2008 financial projections, which will be announced on January 30. Forecasts for 2009 will be provided when the company issues its earnings report in late April. E-mail to a friend