Breaking: Boeing announces first 787 delivery in 3rd quarter 2011

As expected Boeing has announced a new delivery schedule for the first 787 to ANA. The delays in an additional 7 and half months beyond the last revised date of mid February. The revised delivery schedule takes into account the need to fix aircraft and prepare them for delivery along with any additional test points that the FAA will require Boeing to perform in wake of the fire last November.

It's no secret that Boeing also has plenty of work to do to get the airplanes that are already assembled and lined up on the flightline reworked for delivery to customers. Boeing is saying that the revised delivery schedule will not have an impact to the 2010 financial results (naturally since Boeing had last put the first delivery to mid first quarter of 2011) and that they will discuss financial guidance from the impact of the revised delivery timeline in the company's earnings conference call next week.

At the end of the day Boeing still has a lot of certification testing that they need to finish along with all the rework that awaits the 20+ 787s that are spread across Everett. Boeing also needed to build in more margin in case there are any additional issues that could crop up but at this point who knows what could come up and what kind of impact it would have.

Here is Boeing's statement:

Boeing Sets 787 First Delivery for Third Quarter

EVERETT, Wash., Jan. 18, 2011 /PRNewswire/ -- Boeing (NYSE: BA) announced today that it expects delivery of the first 787 Dreamliner in the third quarter of this year. The new delivery date reflects the impact of an in-flight incident during testing last November and includes the time required to produce, install and test updated software and new electrical power distribution panels in the flight test and production airplanes.

"This revised timeline for first delivery accommodates the work we believe remains to be done to complete testing and certification of the 787," said Scott Fancher, vice president and general manager of the 787 program. "We've also restored some margin in the schedule to allow for any additional time that may be needed to complete certification activities," Fancher said.

The 787 program has been gradually returning individual airplanes to the flight test program. After receiving interim software and hardware improvements, four flight test airplanes have been subjected to extensive ground testing and a thorough review to ensure their readiness to return to flight. The remaining two airplanes will be returning to flight in the days ahead to bring the full flight test fleet back up to flight status.

The revised first delivery date is not expected to have a
material impact on 2010 financial results. Financial guidance and anticipated
initial 787 deliveries for 2011 will be discussed in the company's earnings call
on Jan. 26.