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Boeing 787 Delay Liner Big Flight
Boeing's new 787 wide-body jetliner made its maiden flight on December 15. However, rollout of the aircraft has been dogged by a series of development delays, which will cost the company millions of dollars in compensation to customers. Getting the 787--Boeing's main new contender in the key high-margin wide-body market segment and a platform for several new technologies--back on track is vital to securing the company's future in its ferocious competition with Airbus.
The 787 has won approximately 840 orders to date, which, despite some cancellations, is a record for a commercial aircraft at launch:
-Tuesday's maiden flight allows Boeing ( BA - news - people ) to bolster the confidence of customers, halt the drift of orders to the forthcoming Airbus A350 and get the program back on track after a two-year delay.
--However, with a demanding twelve months of testing ahead involving an aircraft that features innovative large-scale composite material structures, the pressure on the company to deliver is set to increase.
The most significant question is whether Boeing can meet the exceptionally ambitious monthly production targets it has set for itself; if not, the company faces further program losses and may sacrifice its current competitive advantage over Airbus.
Airbus catch-up? The repeated delays have given Airbus an opportunity to regain ground that it lost to Boeing in wide-body aircraft market.
Airbus's cash flow and focus on the A350 have both been disrupted by chronic production problems with its A380 superjumbo airliner. Deliveries lag last year's total, and delivery targets for 2010 have been reduced. Deferrals and cancellations have eaten into EADS's cash reserves, affecting its ability to finance the A350XWB.
Boeing response. Boeing appears to have not learned from its rival's troubles, so the 787 is likely to encounter the same chronic production problems that still bedevil the A380--its heavy composite material use does take the 787 into relatively uncharted territory as far as large-scale mass civil aircraft production is concerned. Therefore, it is conceivable that there could be further setbacks in Boeing's exceptionally demanding testing and production schedule.
787 prospects. Yet prospects for the 787 remain very bright. Even if he aircraft is less advanced than the A350XWB, It promises lots of improvements in fuel burn and general emissions reduction that will make it the most environmentally friendly airliner until the A350XWB enters in service at least two years after the Delay Liner.
Riding out recession. Boeing and Airbus both expect a fall in demand in 2010 due to the deep airline industry recession. In the longer term, Boeing still predicts a global market for 29,000 airliners worth $3.2 trillion, over the next 20 years--an estimate that appears credible.
Boeing has ridden out the recession and credit crisis relatively smoothly thants to Gov´s Loans to their costumers: The company benefits from liquidity support from the U.S. export credit agency, the Export-Import Bank, accounting for nearly 40% of the bank's $21 billion in business last year. This support is a major prop for the company in its battle with Airbus, which has similar backing from three national credit agencies.
Good competition ahead.
hey people what is the reason for the pilot dont up the landing gear?
dogor64 2 years ago 4
Common procedure in Aviation, to avoid any unnecesary risk during a first flight.
arsenium666 2 years ago 4
@arsenium666 what's the risk?
mevlutunlu42 1 month ago
@mevlutunlu42
Not deploying correctly the landing gear could lead to a crash land= Upset of the testing and certification process!
Which would add another delay to the programm (3 years behind schedule yet)
; )
arsenium666 1 month ago
If you know me...you´d noticed than I´m one of the most critic against Boeing on the Tube..if not the Number 1.
That´s why after all this years...we must congratulate Boeing for being able to put a new Bird in the SKY.
Well Done...finally.
arsenium666 2 years ago