Boeing in serious financial problems from 787 Dreamliner delays - shares slump 25% in 6 months. Nightmare on WallStreet Pt : 7 more follows
Boeing have received 75 new orders for 787 Dreamliners , 15 from Gulf Air, 1 from PrivatAir and the rest not identified.
Boeing has said it will announce a production schedule for the 787 Dreamliner by the end of the month.
Seattle Times reports that the buzz at the International Society of Transport Aircraft Trading (ISTAT) conference is that the company is bracing itself for more bad news this month on the 787 Dreamliner. 45 or fewer planes will roll out of Everett by end 2009 against a planned 112 .
Realistic buyers are now not looking for stop gaps and taking five-year leases on Boeing 767s or Airbus A330s. Others are buying 777s. (El Al Israel Airlines order announced today 4 Boeing Co 777-200ER RR power plant 1 in 2012 2 in 2013 for $540 million.)
Boeing's credibility is being stretched wafer thin - costs are soaring both for production and customer compensation hitting the bottom line very severely. OK it will be a really great plane when it gets to fly.
This is not a failure of financial engineering - it is a failure of the engineers. They have promised something they cannot deliver, in time, on time, on budget.
Boeing also recently lost a US$35 billion contract to supply the USAF with air-refueling tankers. It was heavily favored by politicians at the pork barrel rim, but was beaten by the Alabama based team of Northrop Grumman and EADS, the parent of European-based Airbus.
UPDATE 25th March 2008 Daily Telegraph reports that Virgin are in discussions with Boeing over the 787 - 9' s with extended range that they have ordered. Propects for the derivative -9 and - 10's are lookong increasingly further down the track.
Tour operator First Choice and British Airways, which has 24 787s on order, also face delivery delays