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New schedule for production of 787 Dreamliner

eTN Staff Writer  Aug 27, 2009

Reflecting the previously announced need to reinforce an area within the side-of-body section of the 787 Dreamliner aircraft, along with the addition of several weeks of schedule margin to reduce flight test and certification risk, the Boeing Company announced today that the first flight of the 787 Dreamliner is expected by the end of 2009 and first delivery is expected to occur in the fourth quarter of 2010. The company projects achieving a production rate of 10 airplanes per month in late 2013.

"This new schedule provides us the time needed to complete the remaining work necessary to put the 787's game-changing capability in the hands of our customers," said Boeing chairman, president, and chief executive officer Jim McNerney. "The design details and implementation plan are nearly complete, and the team is preparing airplanes for modification and testing."

Based on the revised schedule and other assumption updates, the company has determined that the 787 program is not in a forward-loss position.

However, separate from the updated program profitability assessment, the company has concluded that the initial flight-test airplanes have no commercial market value beyond the development effort due to the inordinate amount of rework and unique and extensive modifications made to those aircraft. Therefore, costs previously recorded for the first three flight-test airplanes will be reclassified from program inventory to research and development expense, resulting in an estimated non-cash charge of US$2.5 billion pre-tax, or US$2.21 per share, against third-quarter results. This charge will have no impact on the company's cash outlook going forward.

The 787 team working the side-of-body reinforcement has completed initial testing and is finalizing design details of new fittings that are expected to ensure full structural integrity of the joint. The static test procedure that uncovered the issue will be repeated and the results fully analyzed before first flight is conducted. Fatigue testing also will be performed on stringer components to validate the long-term durability of the modification.

The first 787 test airplane and static test unit have been prepared for the new fittings. Installation is expected to begin within the next few weeks.

New schedule for production of 787 Dreamliner
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