Wednesday, October 21, 2009

787 news from the earnings call - Oct. 21, 2009

Boeing released its third quarter earnings results this morning and the numbers were not good with a third quarter loss stemming from charges against the 787 and 747-8 programs. Boeing had promised more information on the 787 today and this is what they had provided:

1) Boeing engineers will finish and validate the detailed design of the side of body reinforcement fix this week.
2) Boeing will select the location of the 2nd 787 assembly line within the next couple of weeks.
3) ZA001 will undergo renewed gauntlet testing as well as taxi tests after the fix is validated with tests on the static test airframe
4) The installation of the fix on the airplanes are going well and Boeing reiterated its intent to fly prior to the end of this year.
5) Each of the test flight 787s will start flying at approximately 1 month intervals after the previous one will starting with ZA001. This means that the last test flight 787 should be up in the air by the end of June 2010 assuming ZA001 starts flying on Dec.31, 2009. I really wonder, with that kind of schedule, if Boeing can certify the 787 before the end of 2010?

Boeing last shred of credibility is on the line. If they fail to deliver on the 787 then my sense tells me that I really fear for the future of this company, at least in the commercial aircraft business.

Conference Call synopsis from


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