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In a conference call with analysts and media to report earnings, Air Canada says Boeing has told the airline that its 787s will be up to 30 months late.
Montie Brewer, chief executive of Air Canada, said Thursday that initial deliveries of the 37 Dreamliners the airline has ordered ordered won't begin until early 2012 -- about 24 months late. And some of the 787s will be up to 30 months late, he said.
And ILFC, the biggest single customer for the 787, said in an SEC filing Thursday its planes will be at least 27 months late.
The Dreamliner program is about 15 months behind schedule, and the first planes that were supposed to be delivered this month have slipped until the third quarter of 2009. Boeing has said it is working with individual airlines about new delivery dates.
Brewer said Air Canada will be seeking compensation from Boeing over the delays.
Air Canada had been an Airbus customer for its long-haul needs until switching to Boeing's 777 a few years ago. It then ordered the 787.
The 777-200, according to Air Canada, burns about 15 percent less fuel per seat than the Airbus A340 it replaced.
UPDATE:
Here is my story, which will be posted online soon.
BY James Wallace
P-I aerospace reporter
Although The Boeing Co.'s 787 Dreamliner may be only 15 months or so behind schedule, delivery delays will be as much as twice that long for some customers that bought the fuel-efficient composite jet.
The extend of the delivery delays, which likely will cost Boeing several billion dollars in penalty payments, became more apparent Thursday when two important 787 customers disclosed just how late their planes will be.
In a filing with the Securities and Exchange Commission, the parent of International Lease Financial Corp., the single biggest customer for the 787 with 74 on order, disclosed that its planes will be delayed "an average in excess of 27 months per aircraft and span across ILFC's entire order."
The leasing giant, one of Boeing's most important customers, was supposed to have taken delivery of its first Dreamliners in 2010, but does not expect the first planes to be available until at least 2012.
Also Thursday, Air Canada said its 787s will be anywhere from 24 to 30 months late.
In a conference call with media and analysts to report earnings, Air Canada Chief Executive Montie Brewer said Boeing recently informed the airline about its new 787 delivery schedule. Air Canada has 37 Dreamliners on order.
The airline probably won't get its first Dreamliner until January 2012, rather than in 2010 as initially promised, Brewer said.
For airlines, late delivery of the 787 means they must find other planes for their networks to make up for the 787 capacity they were counting on. And with fuel prices at record highs, airlines will end up paying more for fuel because the fuel-efficient 787 won't be in their fleets.
Brewer said in the conference call that Air Canada was fortunate because it has been taking delivery of new 777s from Boeing. It has a younger fleet than many airlines.
"Just imagine if we were like other carriers that haven't brought in a new efficient fleet to weather this storm,'' he said. Still, Air Canada will park some of its older, fuel-guzzling jets, he said.
The 777, according to Air Canada, burns about 15 percent less fuel than the four-engine Airbus A340 that the airline previously operated.
Brewer said Air Canada will demand compensation from Boeing because of the 787 delays. He did not give a figure. But he did say Air Canada will experience capacity issues in 2010 when the 787s don't show up.
Some industry analysts are forecasting that the 787 delays could end up costing Boeing as much as $4 billion or more in penalty payments. Boeing has said it does not yet know those costs. But the issue is complex. All Nippon Airways, the initial launch customer for the 787, is reportedly in talks with Boeing about using new 767s to meet its interim lift needs until its 787s start showing up. Those 767s could be a substitute for actual penalty payments, according to a person with knowledge of the matter.
Boeing has said it is in talks with a number of airlines about how to help them meet capacity requirements because of the 787 delays.
All Nippon Airways was supposed to take delivery of its first Dreamliner this month. Boeing recently said first deliveries won't begin until the third quarter of 2009.
But Boeing is also drastically cutting 787 production, which accounts for why some customers won't get their planes for two years or more from the original delivery date.
Boeing had planned to delivery 112 Dreamliners by the end of 2009. Instead it will deliver just 25. Boeing is also ramping up production much more slowly than first planned. Rather than hitting a production goal of 10 planes a month in 2010, that won't happen until 2012.In a conference call last month to report on earnings , Boeing Chairman and Chief Executive Jim McNerney was asked how many of the 900 Dreamliners that Boeing has sold will be late. "We are still working through what the impact will be,'' McNerney said then. "But we don't see a scenario where all 900 would be delivered late.''
Despite three delays that have pushed first flight of the plane from late August of 2007 until the fourth quarter of this year, the cutting-edge jet continues do well in the market place. Boeing has sold 79 Dreamliners this year and said it expects to have more than 1,000 orders by the time the first planes are delivered.
Boeing updates its order totals every Thursday, and while it did not have any new 787 orders in the last week, it did have 32 more orders for other models – 26 737s as well as six 777s.
For the year, Boeing has 378 net orders. The net figure includes cancellations. That puts Boeing only slightly behind Airbus, which through April 30 had won net orders for 397 planes.
Capped by a record 2007, Boeing has sold more than 1,000 planes each of the last three years. Boeing won gross orders for 1,423 planes last year. That was 373 more than it sold in 2006, which had been its best year ever.
Boeing had 1,413 net orders in 2007. But Boeing is predicting a more normal sales year in 2008, as is Airbus. Boeing has said orders could be half what they were in 2007, though that still would be considered a good year.
Airbus has said it expects to sell around 700 jets in 2008. Airbus beat Boeing in gross sales last year, but its net total was 1,341 planes.
Boeing beat Airbus in orders in 2006 for the first time since 2000.
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Posted by unregistered user at 5/8/08 3:05 p.m.
They need see the A350XWB definitely in order to keep in truck; otherwise AC with B787 will be lost as a company