Production woes threaten Boeing 787 deliveryTechnical, production woes threaten Boeing 787 delivery
Sun Jun 18, 3:13 PM ET
WASHINGTON (AFP) - Boeing engineers are grappling with significant technical and production problems that could endanger the on-time delivery in 2008 of the 787 Dreamliner, a US magazine reported online.
"At a time when Boeing has left itself with little margin for error, the wide-ranging series of glitches could create a domino effect if they aren't resolved quickly," the BusinessWeek magazine said in its online edition.
"The worst news: The fuselage section -- the big multi-part cylindrical barrel that encompasses the passenger seating area -- has failed in company testing. That's forcing Boeing to make more sections than planned, and to reexamine quality and safety concerns."
Forged from carbon-fiber-reinforced plastic, the jet is a symbol of the new Boeing, the magazine says, which "designed the most innovative commercial plane ever, and devised the most sophisticated manufacturing process in history to produce" it.
Singapore Airlines (SIA), Asia's most profitable carrier, was supposed to be the first airline in the world to launch A380 commercial services and has spent a lot of resources to publicise the feat, only to be told this week it will have to wait longer.
The Airbus A380, which can seat 550 to 840 passengers, is supposed to supplant the venerable Boeing 747 as the reigning giant of the skies but production woes have bedevilled Airbus and its parent firm EADS.
The European Aeronautic Defence and Space Company (EADS), which owns 80 percent of Airbus, lost about 5.5 billion euros or more than one-quarter of its market value Wednesday after the further A380 delivery delays were announced.
Its share price ended at 18.73 euros, down 26.32 percent from the close on Tuesday. At one point, EADS shares fell 34.10 percent to 16.75 euros and the storm continued when credit rating agencies downgraded EADS.
The firm warned that operating profit would be cut by about 500 million euros (625 million dollars) per year from 2007-2010 -- excluding possible contract terminations.
The massive stock sell-off in EADS Wednesday showed investors are bracing for more bad news with other airlines expected to follow SIA's lead in picking the 787 over the A350, analysts said.