New York Times Reports on 787 Workmanship Issues at Boeing South Carolina; Boeing Refutes Allegations

The New York Times dropped a major article regarding work at Boeing's South Carolina plant that builds the 787 entitled "Claims of Shoddy Production Draw Scrutiny to a Second Boeing Jet".  The article lays out how Boeing supervisors essentially turned a blind eye to workmanship issues and discouraged whistle blowing as well as retaliated against employees that did filed reports of manufacturing issues.  The Times also reported on numerous instances of FOD with the manufacture of the 787 at North Charleston.  This is an issue that has plagued the KC-46A program out of Everett but has now been revealed to be an issue with the 787 in South Carolina.

In response to the NYT article, Boeing North Charleston sent a message to its employees:

Team,
The 787 program has a lot to be proud of these days. Our transition to Rate 14 continues to be the most seamless rate transition in the program’s history, and our Boeing South Carolina 787 manufacturing operations are the healthiest they’ve ever been. More importantly, our quality metrics show that we are performing at all-time high levels as well. That is a testament to each of you, demonstrating your pride and your ongoing commitment to excellence with respect to both safety and quality. 

A story that posted in today’s New York Times, however, paints a skewed and inaccurate picture of the program and of our team here at Boeing South Carolina. This article features distorted information, rehashing old stories and rumors that have long ago been put to rest. 

I want all BSC teammates to know that we invited the New York Times to visit Boeing South Carolina once they contacted us, so that they could see first-hand the great work that is done here. They declined this invitation. 

The allegations of poor quality are especially offensive to me because I know the pride in workmanship that each of you pours into your work every day. I see the highest quality airplanes – airplanes that meet rigorous quality inspections and FAA standards – deliver on time on a regular basis from Boeing South Carolina, where they perform exceptionally well in service for our valued airplane customers around the world. Our customers feel the same way, and shared their own thoughts with the New York Times: 

American Airlines said it conducted rigorous inspections of new planes before putting them into service. “We have confidence in the 787s we have in our fleet,” said Ross Feinstein, a spokesman for the airline. 

In a statement, Qatar Airways said it “continues to be a long-term supporter of Boeing and has full confidence in all its aircraft and manufacturing facilities.” Note that only a portion of their quote was included in the story, and we wanted to ensure you had their full perspective:“Qatar Airways continues to be a long-term supporter of Boeing and has full confidence in all its aircraft and manufacturing facilities as a strong commitment to safety and quality is of the utmost importance to both our companies. We have over 100 Boeing aircraft in our fleet, manufactured in both Everett and Charleston, with many more to join in the coming years as part of our significant, long-term investment in the US economy.” 

In fact, we also heard from Suparna Airlines and Norwegian in response to the story, and here’s what they told us: 

Suparna Airlines: “The entire process of the aircraft delivery was very smooth. We want to thank the Boeing team in South Carolina who worked diligently with the Boeing standard and discipline to make the delivery a pleasant experience for us. The airplane has carried out more than 200 scheduled flights with total flight hours up to 500 at an operational reliability of 99.99%. We are happy with the performance of our first Dreamliner.” 

Norwegian: “We are very satisfied with the quality and reliability of all our 33 Dreamliners, regardless of where they have been assembled.” 

The inaccurate picture the New York Times paints is also offensive to me because they are counter to our company’s core values. Quality is the bedrock of who we are. That’s why we relentlessly focus on quality improvements and FOD elimination at all Boeing locations. No matter how good we are today, we always believe we can be even better tomorrow. That drive to be the best will never change at Boeing as we continue to strive to be a Global Industrial Champion and the leader in quality. 

It’s unfortunate and disappointing that the New York Times chose to publish this misleading story. This story, however, does not define us. Our company and our customers recognize the talent, skill and dedication of this excellent Boeing South Carolina team that works together to assemble and deliver incredible airplanes. I want to leave you with a word from Kevin McAllister, Boeing Commercial Airplanes president and CEO, which was not included in full from the New York Times: 

“Safety and quality are at the core of Boeing’s values – there is nothing more important than that. The 787 program has delivered 823 airplanes to more than 76 customers since its launch. As Boeing marks 10 years in North Charleston, our more than 7,000 Boeing South Carolina teammates are producing the highest levels of quality in our history. And, we are seeing this translate across our work and the in-service performance with our customers. We test our airplanes and verify components are fully operational, and when we find a component that is not, it is replaced and tested again. This is core to our quality system, as it is for the industry. I am proud of our teams’ best in-process quality of production and stand behind the work they do each and every day.” 

This is a team that I am very proud to be a part of, and I’m thankful for all that you do every day.
-Brad

In the article, the NYT attributes the issues being experienced at the North Charleston plant to schedule pressures especially as Boeing has increased its production rate to 14/month as well as pushing to use non-unionized workers.  Equally disturbing is reports of retaliation against employees who filed reports of improper work, the use of substandard and even defective parts and the persistence of FOD that continues to be found by customers well after delivery and that could pose a safety of flight issue.  The last thought on the FOD issue is this:  the 787 production system is decentralized with numerous suppliers building individual fuselage and wing sections which are shipped to Everett and Charleston.  It may be possible that the FOD issues could originate with the suppliers but it is still Boeing's responsibility to ensure that any FOD is cleared out during manufacture and prior to delivery.

The Times does not report on any similar issues at Everett and it is not known if the 787 line in Washington is experiencing the same issues as North Charleston and if they are, is it at the same rate as at the South Carolina plant.

It is interesting that Boeing, in the statement it released, noted Qatar Airways statement of support of the program including mentioning that Qatar Airways has several North Charleston built 787s.  However, it is important to note that Qatar Airways has had issues with North Charleston and had complained vociferously to Boeing management about the work done on their 787-8s built at North Charleston.  Apparently Boeing took these complaints seriously enough that they switched the manufacturing site of subsequent 787-8 for Qatar Airways to Everett from Charleston.   Qatar Airways has since firmed their 30 787 options for the 787-9 and it appears that these 30 airplanes will also be built in Everett and not in South Carolina.

Given the 737 MAX and the KC-46A issues, this is something that may attract increase scrutiny from regulators especially the FAA.  In fact with this article out I believe the ball is in the FAA's court to look into the complaints filed by employees and former employees and see if there are corrective actions that need to be made.  It is important to note that there has not been an accident of the 787. I have heard of one off issues at Boeing South Carolina related the manufacture of an individual 787 at the facility but I'm not sure if I can categorize this as a systemic issue which the Times articles seems to imply. I have noted that there is one Air China 787-9 that was assembled over a year ago but has yet to make its first flight and I have to wonder if there was an assembly issue with this particular aircraft in light of the article.  Stay tuned.

787 April 2017 Mid Month Review

	Number
Testing Complete	3
To be assembled in Everett	183
To be assembled in Charleston	140
Parts Arriving	6
Undergoing final assembly	6
Storage	1
Storage/Change Incorporation and Re-Work	0
Change Incorporation and Re-Work	1
Pre-Flight Prep	10
Production Testing	5
Non Customer Flight Tests	2
Ready for Delivery	2
Donation	3
Delivered	540
TOTAL	902

Well most of the way through April Boeing has delivered 8 Dreamliners on their way to delivering 10 787s this month.  An early build 787 for Ethiopian has been pushed out though the delivery date for ZD008, (LN 18, ET-ATI) seems somewhat in flux.  I've heard that delivery can happen in May though I've also heard that delivery won't occur until "after June"  For now I'm listing as stored until there is more definite clarity to delivery.  In the meantime Boeing will deliver 2 more 787 before the end of the month for a total of 10 deliveries.

Production totals for April look to be 11 787s completed and rolled out from the two 787 factories with another 10 or 11 aircraft starting final assembly.  Note that 3 of these 787s were built in Everett and had started final assembly and rolled out within the month of April.

Boeing has gotten the 787-10 flight testing off to a good start.  It appears that they're only flying the aircraft on the weekdays thus far and I'm uncertain that this is going to change.  It may mean that the flight test team doesn't have as much risk to retire or that the flight test schedule doesn't require as many flight hours as the -8 or -9 thus limiting testing to the weekdays.  I'm also expecting that the second flight test 787-10, ZC036 (LN 548, N548ZC) should take to the air around May 2nd, a week from this coming Tuesday. ZC002 is still in final assembly and I expect it to roll out aroune the 2nd week of May and should join flight testing around late June.Thus far the lone 787-10 flight test aircraft has racked up about 72.38 flight test hours.  Boeing needs to achieve Initial Airwothiness Testing which I believe should be down shortly, it will be followed by the TIA (type inspection authorization) which would allow the 787-10 to start the certification program with the FAA and have the FAA on board the -10 to observe the certification flight tests and sign off on each required test flight objective.  The 787-9 achieve the TIA after about 275 flight test hours on the initial Roll Royce powered 787-9 which took about 3 months.  The 787-8 received it's TIA after about 4 months of flying. I believe certification testing for the -10 should start around the end of June to early July time frame if not earlier.

You can follow my log of the 787-10 flight test by clicking the link below for the 787 Spreadsheets.

787 Spreadsheets

First 787-9 built at Boeing North Charleston flies away to Denver

Boeing Photo

Photo by reader

Photo by reader

Photo by reader

The first 787-9 to be built at Boeing North Charleston was formally flown away by United Airlines to it's hub in Denver.  The aircraft will go through the United process of inducting the aircraft into revenue service.

Boeing got the ok to start 787-9 deliveries after the FAA approved the 787-9 production certificate for the North Charleston plant.

Boeing looks to deliver fewer than 10 787s in November

With November more than half over Boeing has recorded only 1 delivery of a 787 this month but more troubling is the continuous shifting of the delivery schedule to the right setting up what may be a very un-happy holiday season for the Boeing workers who would have to put in overtime to get these aircraft completed, tested and delivered.

Boeing can deliver 8 more aircraft this month but one of them, a 787-9 for Air New Zealand, hasn't had its first flight yet and is tentatively scheduled to be delivered around Nov. 24th.  It appears that this aircraft may fall into the December delivery time frame thus I see Boeing only delivering only a total of 8 787s this month.

Notably there are 4 787s for Avianca all of who are ready for delivery or are close to being ready for delivery but these deliveries are now not scheduled to start until December due to some unspecified issue.  Rumor has it that the 1st class seats are not FAA certified though I doubt that as all the customer supplied options such as seats come from the Boeing catalog which are FAA certified.

Also many of the 787s have yet to take their first customer flights and that schedule is also slipping to the right.

This can leave a large number of 787s hanging around Everett (not so much Charleston due to the low production output) as the Holidays come up.  This can serve to continue to increase Boeing's deferred production costs well past the $25.2bn mark as Boeing will have to pay a tremendous amount of over time to catch up in December.  If Boeing only delivers 8 total 787s in November, their YTD total would be 98 and 12 short of their goal of 110.  It is certainly possible for them to deliver 12 787s in one month; they demonstrated they can deliver a significant number of 787s in 1 month but it will come at a cost.

Additionally, they have undertaken very few B-1 flights for aircraft that are due to be delivered in December and there a re still a number of 787s that are at the EMC or on the 40-51 ramp that are finishing up traveled work.

All the while production continues at the 10/month pace though with continued traveled work issues.  Thus far they've rolled out 4 787s with a 5th due to roll out on Sunday night and they've started final assembly on 5 other air frames.  Clearly the backlog in increasing so much that Boeing will be sending 787s to Charleston for final delivery as the ramp space at Everett is shrinking.

It is plainly obvious that Boeing production issues on the 787 are far from over and I do think the only way for them to be resolved is to through more resources and money now before the issues continue to snowball.

We'll see for December brings but right now I  think it's safe to say that Boeing 787 deliveries for this month will be terrible at best.

787 Full Production Table

787 Current Production Table

Delivered 787 List

787 Production and Delivery Trends

787 Monthly Delivery Tracking

Current 787 Operators

Total 787 Deliveries By Customer

2014 Projected 787 Deliveries

787-9 Flight Testing Tracker

GE powered 787-9 receives Amended Type Certificate clearing way for first delivery next week.

The FAA granted Boeing the amended type certificate for the GE powered version of the 787-9 clearing the way for deliveries to begin later next week with the first aircraft going to United Airlines.  That delivery should occur in the middle to late next week.

Boeing is slowly ramping up 787-9 production this year and is on track to deliver 10 to 12 this year though I'm in favor of the higher number.  The airplanes that are coming off the production line still have to go through some change incorporation at the EMC but I believe this should start to tail off by the middle of the fourth quarter (November).  2015 might prove to be a big year for deliveries of the larger 787 model.  I believe that Boeing can deliver around 50 to 55 787-9 which would be almost 50% of their 2015 deliveries.  If they are able to accomplish that coupled with a successful drive to reduce production and assembly costs, then the 787-9 can be extremely profitable for Boeing in 2015.

It could also help if Boeing can convert more customers from the 787-8 to either the 787-9 and/or the 787-10.  Already some airlines are getting out the 787-8 like Air Berlin which still has to confirm their conversion from the -8 to the -9.  This can only help the overall profitability of the 787 program in the long run.  Yesterday, Boeing showed a cancellation of 5 787s from it's weekly order report.  Speculation immediately fell on Lion Air/Batik as the source as they have been talking about converting that order into 10 737s.  There was also an unidentified order for 10 737s posted along with the cancellation thus Lion Air does seem to be the logical choice.

Thus far in August, Boeing has delivered 8 787s but I do expect 5 more to be delivered in the next 9 days. I'll give a fuller report at the end of the month along with a preview of September's deliveries around Labor Day.
787 Full Production Table

787 Current Production Table

Delivered 787 List

787 Production and Delivery Trends

787 Monthly Delivery Tracking

Current 787 Operators

Total 787 Deliveries By Customer

2014 Projected 787 Deliveries

787-9 Flight Testing Tracker

FAA and EASA certifies the 787-9

Boeing announced this morning that the FAA and EASA has certified the 787-9 clearing the way for the first delivery to launch customer Air New Zealand.  The first aircraft for the carrier is already undergoing production flight tests and should deliver in about 2 weeks.


Air New Zealand has ordered the Rolls Royce powered aircraft.  Boeing has yet to start F&R/ETOPs testing on the GE powered version of the aircraft but that should start this month.  I still believe that Boeing should deliver the first GE powered 787-9 to United Airlines late next month.


There has been some questions if the FAA would grant the Amended Type certificate to Boeing due to two separate issues: 1) a need to re-design a capacitor in the RAT and 2) an altitude select knob on the Mode Control Panel (MCP) that doesn't have enough torque and can lead to an error in setting attitude as directed by ATC.  Boeing has asked for a time limited exemptions from these two issues and apparently the FAA and EASA has agreed.  Flightglobal has an a detailed explanation of the issues in an article here.


I do anticipate that Boeing will be able to deliver 12 787-9 this year as follows:


Air New Zealand - 3
ANA - 2
Etihad Airways - 2
Scoot - 1
United Airlines - 2
Virgin Atlantic - 2


Here's Boeing Press Release announcing the award of the Amended Type Certificate:

Boeing 787-9 Dreamliner Earns FAA, EASA Certification

Newest commercial airplane nears delivery on track

EVERETT, Wash., June 16, 2014 /PRNewswire/ -- The Boeing (NYSE: BA) 787-9 Dreamliner has been certified by the U.S. Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA) for commercial service. Boeing is now in the final stages of preparing for the first 787-9 delivery to launch customer Air New Zealand.

"Certification is the culmination of years of hard work and a rigorous flight-test program that started with the 787-9's first flight last September," said Boeing Commercial Airplanes President and CEO Ray Conner. "With this validation that the airplane is ready for commercial operations, Boeing along with our airline and leasing customers now look forward to introducing the newest member of the Dreamliner family to passengers around the world."

To earn certification for the 787-9, Boeing undertook a comprehensive test program with five airplanes and more than 1,500 hours of flight testing, plus ground and laboratory testing. Following the rigorous and thorough certification process, the FAA and EASA each granted Boeing an Amended Type Certificate for the 787-9, certifying that the design complies with aviation regulations and is safe and reliable.

"Throughout 787-9 development, the dedication and discipline of our entire global team drove outstanding performance," said Mark Jenks, vice president, 787 Airplane Development, Boeing Commercial Airplanes. "From the start of assembly last spring to a flawless first flight and now our on-time certification, we thank everyone on the Boeing and partner team as well as our customers for making 787-9 development so successful."

The FAA also has granted Boeing an Amended Production Certificate, validating that the Boeing production system can produce 787-9s that conform to the design. EASA accepts FAA oversight of Boeing production certificates, just as the FAA accepts EASA oversight of European manufacturers' production certificates.

The new 787-9 Dreamliner will complement and extend the super-efficient 787 family. With the fuselage stretched by 20 feet (6 meters) over the 787-8, the 787-9 will fly more passengers and more cargo farther with the same exceptional environmental performance — 20 percent less fuel use and 20 percent fewer emissions than similarly sized airplanes. The 787-9 leverages the visionary design of the 787-8, offering passengers features such as large windows, large stow bins, modern LED lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.

Twenty-six customers around the world have ordered 413 787-9s, accounting for 40 percent of all 787 orders.

787 testing and deliveries slow in March

On the heels of the revelation of the wing crack on certain 787s and the inspection and repair program that Boeing has implemented, the testing and deliveries of 787s to customers has slowed considerably through the first 10 days of March. This is certainly attributable to the ramp up of inspection of the block of Dreamliners that have been identified (LN 151 to LN 193 inclusive) as possibly having the cracks.  It should be noted that not all of these airplanes may have the cracks as the aircraft has to be inspected for them. 


Reminiscent of the last years grounding as well as the delays to program prior to FAA certification, the Everett ramp is filling up with 787s once again. There 13 production 787s that are out on the Everett flightline.  Boeing continues to build 787s at the same rate of 10/month.


The wing problems already exacerbate the existing issues revolving around the production of the 787 mid-body fuselage section which has been slowed due to the introduction of the higher production rate and the start of 787-9 assembly.  Boeing certainly didn't do themselves any favors when they let go of hundreds of contractors last year.


In terms of production flights, the trend, of late, is that there would be a flight made by 1 or 2 787s a day but this included a 787-8 B-1 flight made by ZA275 (LN 161, SP-LRF) for LOT.  There hasn't been a flight made by airplanes that flew last month as these aircraft are either going through inspections or are having repairs made to them.  Reports in the media say that deliveries would be delayed a few weeks with some reports saying this would be 1 to 2 weeks.


Certainly the repairs shouldn't take that much time as well as any post repair inspections but the large number of aircraft that are potentially affected may make this a longer project than most anticipate.
Boeing has delivered 1 787, ZA230 (LN 25, VT-ANA) to Air India and they could potentially deliver 2-3 787s to Qatar Airways and possibly 1 to United Airlines.  All these aircraft are pre-L/N 151 aircraft and is not subject to the wing inspections.  If they can get their act together they could still deliver 1 to 2 aircraft that are in the lot of 43 aircraft.  Most likely Boeing can deliver a total of 5 to 6 787s this month and try to catch up to deliveries during April and May.  I think they should be back on their regular delivery schedule by June but until then, 787s will continue to stack up on the flightlines at Everett and North Charleston.


Full 787 List

Current 787 Production List

Delivered 787 List

787 Monthly Delivery Tracking

787 Customer Delivery

787-9 Flight Test Hours

Current 787 Operators


 

Boeing Charleston to undergo FAA audit while production heats up. January 787 deliveries look to come in low.

UPDATE: The FAA sent out this response to the audit:  "The FAA will conduct a regularly-scheduled audit of the Boeing Commercial Aircraft production system in February. Boeing’s North Charleston, SC facility will be included in the audit. Five FAA inspectors will assess that Boeing’s systems are in compliance with the regulations for the manufacture of airplanes."


UPDATE:  Boeing emailed me this response:  "This routine audit, conducted about every two years at multiple Boeing locations, is part of Boeing maintaining our Production Certificate 700.  It’s not focused solely on Boeing South Carolina."


FAA Audit at Boeing Charleston

Sources revealed that Boeing Charleston will be undergoing an extensive audit, possibly one of the largest in Boeing's history, as the FAA examines Boeing's production practices.  Among the items that the FAA will be examining will be tool accountability, lost or missing tools, calibration dates, mismatched tools/tooling kits among others.  There will be 5 inspectors who will be at Charleston starting January 27th and remaining there until February 14th.  They will be looking over the shoulders of the manufacturing techs (MT) at the Charleston plant and will be quizzing them about the processes that they are using and how those specs and engineering were authorized.  It was revealed by the Wall Street Journal that Boeing is adding 300 contract workers and may increase that number to as many as 1,000.





Sources described the production of the mid body fuselage section built in building 88-20 as "a complete disaster, a cluster fuck."  This is a very worrying development to Charleston workers as some of them feel that the FAA may shut them down because of issues the audit may uncover.  88-20 is clearly the weakest link in Boeing 787 production chain as it is this unit that produces the mid bodies for all 787s whether they are built in Everett or Charleston.  Some MTs from the final assembly line in 88-30 have been sent to 88-20 to help reduce the strain that this area is facing.  Boeing has promised its MTs an 8% bonus if they can get the 16,000 jobs that they are behind on down to 8,000 by the end of February. If the issues in 88-20 worsen it could lead to slow down of 787 production and deliveries at least for this year.  This is not the first time that the South Carolina plant had undergone an audit.  In June 2008 the FAA audited the 88-20 plant which was then under the 50/50 joint venture between Boeing and Alenia Aeronautica of Italy known as Global Aeronautica.  The audit uncovered lax manufacturing standards and forced a 24 hour shut down of the plant to go over proper procedures regarding FoD.


I have reached out the FAA and Boeing Charleston for comment.  The FAA will inquire and get back to me.  I will update this post if I hear back from either party.





Meanwhile 787s continue to be built...



The FAA audit notwithstanding, Boeing continues to build 787s at both plants at a rate of 10/month.  This month Everett will have started assembly on 9 Dreamliners and Charleston would have started final assembly on 2 aircraft.  Boeing has rolled out quite a few unpainted 787s over the last few weeks onto the flightline.  Usually they go straight to paint after being rolled out.  I'm not sure why they changed this though Boeing test flight could be doing some ground testing before the aircraft is painted.  Whether the 10/month rate can be sustained due to the production issues in Charleston, particularly the mid body assembly in 88-20 remains unclear though this is why Boeing has bought in the contract workers.



Boeing did rollout the first 787 to be produced at the 10/month rate though they said that the aircraft is L/N 155 (ZA564) which is a 787 for ILFC being leased to Aeromexico.  Back in November when Boeing announced that they had started production on the first 787 at 10/month (through Randy Tinseth's Blog) they did not identified the aircraft that had the distinction of being built at that rate.  I was able to identify the aircraft as L/N 152 (ZA188) for Japan Airlines which sources told me was loaded into the first position and started final assembly on Nov. 14, 2013.  When asked about the apparent discrepancy, a Boeing spokesperson insisted that the aircraft that was loaded on Nov. 14th was L/N 155 not L/N 152.  I stand by my belief that the aircraft that kicked of the 10/month production rate is L/N 152.



First deliveries in 2014



Boeing has already delivered 1 787 this month to ANA and is in the process of delivering United's 9th 787 on Jan. 27th. I was expecting quite a few more by now to be handed over.  ZA469 (LN 129, A7-BCH) for Qatar Airways spent a long time being painted (and repainted), first in Ft. Worth, then at Boeing's paint facility in Portland, OR.  I assumed that it was now ready to finish production flight tests and be handed over to the customer but it has been hauled back inside 88-30 in Charleston for unknown reasons.  There are several more Qatar Airways 787s waiting to fly and to be painted but are sitting on the flightline at Boeing Charleston.  It appears that Boeing will not deliver any 787s to Qatar Airways this month.  They are trying to get a couple more to ANA as well as to the first BBJ customer - the Saudi Finance Ministry.  I also believe Boeing can deliver one to ILFC which will leased as a business jet to Sky Blue Holdings.  Boeing may be able to deliver one (maybe 2) to Air India as ZA230 (LN 25, VT-ANA) has been conduction flights as of late. ZA231 (LN 26, VT-ANB) conducted flight tests last month but none this month.  I'm not sure if  ZA231 is ready to be delivered. A very real reason for the slower deliveries is the weather in Everett probably played havoc with the flight tests as Everett suffered from several days of foggy conditions.  There were no test flights for quite a few days as the fog lingered around Paine Field.






Full 787 List

Current 787 Production List

Delivered 787 List

787 Monthly Delivery Tracking

787 Customer Delivery

787-9 Flight Test Hours

Current 787 Operators





 

787 Program 2013 Year in Review: The Good, The Bad and The Ugly

2013 for the 787 program was a mixed bag for Boeing.  The program is on a firmer footing compared to a year ago but issues certainly has hit the program hard.  Boeing did deliver 63 (by my count, this may increase as Boeing may have made contractual delivery prior to New Years but fly away may occur after New Years Day) 787s in 2013.  Currently there are 17 operators and 16 customers of the 787.  The delivered fleet count is now 112 aircraft delivered to the 16 customers.  Here's my take on the past year:

The Good

Boeing executed the planned increases in production rate to 10/month as promised and they had also launched the 787-10 which promises to be a big seller and has 132 firm orders 6 months after the formal program launch.  Boeing's guidance for deliveries in 2013 was more than 60.  Boeing has delivered 63 787 but this number may grow as contractual deliveries may have been made prior to January 1, 2014.  Lastly, Boeing has started flight testing the 787-9 the larger iteration of the 787-8.  There has been no apparent hiccups and flight testing looks to be going very smoothly for this aircraft.  Certification testing has begun for both the GE and Rolls Royce powered aircraft.  First delivery is still slated for mid 2014.

The Bad

The 787 continues to suffer from teething issues which has impacted customer on time dispatch rates. Numerous customer complaints, some of which were very public (Norwegian). The issues, many of which are traced the software, are expected to be fixed by summertime but it do damage to the 787 brand.  The continued teething issues will continue to be a sore point between Boeing and its customers but when the aircraft is flying revenue flights, it is making money for its owners.

The Ugly

The ugly certainly is the lithium ion battery short circuit that caused a fire on a JAL 787 in Boston and a smoke condition on an ANA aircraft that was airborne.  The subsequent grounding raised a lot of the certification of the aircraft and the electrical architecture which became the subject of Congressional hearings.

Boeing did devote a tremendous amount of resources to develop a new containment and venting system that would ensure that a fire couldn't go beyond the battery itself.  This focus on finding a way to contain a fire without knowing the root cause of the battery overheating was very controversial but not without precedent. Boeing was able to convince the FAA, customers and other international aviation regulators of the effectiveness of the new system that flights resumed in late April and deliveries restarted in May.

In July, Boeing got another fire scare as an Ethiopian 787 that had just completed a flight to London's Heathrow Airport experienced a fire in the rear crown area of the aircraft. British investigators traced the fire to the aircraft's emergency locator transmitter (ELT) but the investigation is still not final.  Boeing repaired the aircraft in a closely watched process.  There have always been questions as to large composite sections can be repaired.  Boeing got this first opportunity and they were apparently successful as the aircraft has returned to service with Ethiopian last month.

Coming Soon: Look ahead to 2014 for the 787 program and my predictions.

Full 787 List

Current 787 Production List

Delivered 787 List

787 Monthly Delivery Tracking

787 Customer Delivery

787-9 Flight Test Hours

Current 787 Operators

 

Boeing Charleston workers being unfairly criticized for slow deliveries

Boeing has reached its 2013 goal of assembling the 787s at a rate of 10 per month which is split between Everett and Charleston 8 to 2.  Guidance given by Boeing last year indicated that when they have reached this rate that the production would be split 7 to 3.  It was a surprise to everyone when it was revealed by Charleston based Boeing executives a few months ago that Charleston rate is at 1.5 and that they wouldn’t reach the 3 per month rate until sometime in the first quarter of 2014. 

People started to question why that was and many observers claimed that it was because the skill set and experience of manufacturing technicians (MT) at Charleston were not at the level of those at Everett.  Certainly the new MTs at Charleston had a learning curve to climb but can they be blamed for the lower rate of output at Boeing Charleston?

All things being equal the MTs have the same basic skill set as those at Everett. Where everything is not equal is the amount of experience the Charleston MTs have vs. those in Everett.  Certainly with time the Charleston MTs will be just as skillful at putting together the 787s as those in Everett.

For one thing Charleston only works two shifts on one assembly line while Everett work three full shifts on two lines.  Additionally Boeing is limiting the amount of overtime that the Charleston MTs work while there isn’t any known restrictions to the Everett workforce.

They also have very demanding customers who are observing every facet of assembly of their aircraft like Qatar Airways.  To top it all off, there are about 3 to 5 QT’s (Quality Technicians) to sign off on the work that was done per the FAA’s PC-700 production certificate.  MT’s have to wait sometimes up to 2 hours for a QT to inspect and sign off on the work that was performed.  Sometimes the Charleston workers have to hunt, scrounge for or have one of the shop workers fashion the appropriate tool in order to get a particular job completed to spec and to customer satisfaction.

In time, the Charleston line will be producing and delivering the three aircraft per month that is expected and I don’t doubt that when Boeing goes to 14 per month, the additional 4 airplanes will be coming from Charleston. However I feel that people are unjustly criticizing the SC plant and in particular, are being unfair to the techs that are building the 787s.

Boeing paints and rolls out 1st 787-9

Images courtesy of the Boeing Company

 

Boeing released a statement and photo of the 1st 787-9 after completing the painting of the aircraft.  Boeing said that it had rolled the aircraft out of the paint hangar so all you plane spotters please get to Everett for more photos.  Hopefully it wasn't rolled back into one of the assembly hangars. 

 

This plane is complete in the time frame I had predicted a couple of months ago (roll out in late July) and I still expect that first flight should occur (barring any unknown unknowns) by late August to early September to kick off the 6 month flight test/certification program.  Boeing will be giving a briefing on the 787-9 flight test and certification program but they will be using 3 instrumented aircraft (ZB001, ZB002, ZB021) and a 4th production standard aircraft (ZB197) which will not be instrumented.

 

Here's Boeing's Press Release: 

 

First Boeing 787-9 Dreamliner Features New Boeing Livery

EVERETT, Wash., July 27, 2013 /PRNewswire/ -- Boeing [NYSE: BA] continues to make progress on the first 787-9 Dreamliner, which also has become the first 787 to don the new Boeing Commercial Airplanes livery. The airplane has just rolled out of the paint hangar.

This refreshed look for the Boeing family began with the 747-8 and evolved with the 737 MAX. The new livery retains many of the features of the original 787-8 livery, adding a prominent number on the tail to help distinguish among models within the same product family.

The 787-9 will complement and extend the 787 family, offering airlines the ability to grow routes opened with the 787-8. With the fuselage stretched by 20 feet (6 meters), the 787-9 will carry 40 more passengers an additional 300 nautical miles (555 kilometers), with 20 percent less fuel use and 20 percent fewer emissions than similarly sized airplanes. The 787-9 leverages the visionary design of the 787-8, offering the features passengers prefer such as large, dimmable windows, large stow bins, modern LED lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.

Boeing is on track to roll out and fly the 787-9, currently in final production, in late summer. First delivery to launch customer Air New Zealand is set for mid-2014.

FAA issues AD for 787 ELTs plus 787 deliveries for July

Today the FAA is ordering carriers to either inspect or remove the ELTs on their 787 aircraft.  This is coming on news that AAIB investigators are narrowing the fire in the ELT to improper installation of the ELT and the associated lithium-manganese batteries which allowed the wires in the ELT to be pinched thus leading to a possible arcing event and igniting the fire.  Essentially, the 787 and its electrical system has been exonerated in this event and the issue maybe that of workmanship instead of design.

In related news,, Jim McNearny, speaking on the 2nd Quarter earning call said that Boeing is in discussions with Ethiopian on plans to repair the 787.  There was some question as to whether the aircraft would be repairable or would have to be written off.  This is the first indication that I know of that Boeing believes the damage to ZA261 is repairable.  Hopefully within a couple of weeks will know what Boeing's repair approach will be and how they will ensure that the repairs won't compromise the structural integrity of the aircraft.

As the July is coming to an end Boeing is making a push to deliver several 787s.  Thus far they have delivered 4 in July and should be able to deliver 4 more:

Ethiopian - 1
LOT - 1
Qatar -1
United Airlines - 1

For August, Boeing should be able to deliver at least 11 though I'm not including any deliveries to Air India, Hainan Airlines or China Southern.  Between these three airlines, there are 14 787s that are essentially ready to be delivered.  Assuming Boeing delivers 4 more 787s by the end of July, they will have 28 aircraft that are in pre-flight or in production test flights (excluding the 787-9 that is in the paint hangar). This means that Boeing can possibly deliver 14 787s from this current batch (not including the aforementioned carriers) however, some of these are scheduled for a September delivery.  I do think Boeing will be able to deliver 11 787s (barring any unknown issues):

ANA - 3
British Airways - 1
JAL -1
ILFC/Aeromexico - 1
ILFC/Norwegian - 1
LAN - 2
Qatar -1
TUI - 1

Again I'm not counting any deliveries from Air India, China Southern or Hainan as these carriers have been notoriously unreliable when it comes time for them to pick up their aircraft especially after they raised hell for the delays.

If, by some miracle, these airlines are able to take delivery, then we can see much higher total deliveries of around 15 to 16 for August.


Full 787 List

Current 787 Production List

Delivered 787 List

787 Monthly Delivery Tracking

787 Customer Delivery

 

AAIB confirms fire on Ethiopian 787. Fire looks to originate from ELT

The AAIB is recommending inerting (turning off) the lithium-manganese powered ELTs and is recommending a safety review of the batteries that power the ELT. The AAIB says that the aircraft was plugged into external power but the aircraft itself was not powered up. 

This means that the Honeywell supplied ELT was the source of the fire which affected the composite structure and interior insulation as well as blackened and peeling the paint externally. There was damage to the composite structure. The firefighters tried using handheld halon extinguishers which were not effective then resorted to water hoses which put out the fire. The ELT was effectively destroyed and the AAIB also said that there we no other aircraft systems in the vicinity of the ELT "which, with the aircraft unpowered, contain stored energy capable of initiating a fire in the area of the heat damage." The AAIB is not certain if the combustion was initiated by a release of energy within the batteries or an external source such as an electrical short.

There are two recommendations:

1) The FAA orders the inerting of the Honeywell ELT until it can be fixed.

2) The FAA initiates a safety review of the lithium powered ELT in other aircraft types and mandate appropriate fixes.

Essentially this clears Boeing and the electrical architecture but it would be paramount to understanding the source of the combustion.  The Honeywell ELT is used in other aircraft types and have been certified for use in commercial aircraft since 2005. 

The AAIB also said that there typically isn't any fire detection or suppression equipment in the space where the fire took place and if it had occurred during flight could have posed a "significant safety concern and raise challenges for the cabin crew in tackling the resulting fire."  The firefighters had to rip down the ceiling panels and overhead luggage bins to access the area of the fire.

With inerting the ELTs, the risk of a fire is taken away. Boeing will still have to determine if they can economically repair ZA261 and return it to safe and normal service. This will be a major challenge for Boeing's engineers. You can read the full AAIB interim report:

http://www.aaib.gov.uk/cms_resources.cfm?file=/S5-2013%20ET-AOP.pdf

AAIB: Batteries did not cause Ethiopian 787 Event

The UK's Air Accident Investigation Branch sent out a press release essentially exonerating the 787 lithium ion batteries in the smoke/heat/fire incident at Heathrow yesterday.  The aircraft was pulled into a remote hangar where investigators will try and understand what happened and why.

Thus far there has been a lot of speculation but we do know that there was smoke throughout the cabin and heat damage in the rear crown area.  The Ethiopian Dreamliner was not equipped with a crew rest area nor where there air conditioning pack in the area of the fire.  There has been speculation that this fire may have been intentionally set and even though the chances are highly remote it has not been discounted.

I do think that the AAIB along with the NTSB and FAA should be able to get to the how and why within a few weeks.  In  the meantime, 787 customers including Ethiopian continue to operate the 787 and Boeing continues production and flight testing.

Here is the text of the AAIB's July 13th press release:

Date: 13 July 2013

Serious Incident to Boeing 787-8, ET-AOP,

at London Heathrow Airport on 12 July 2013

 

 Date & Time: 12 July 2013 at approx 1550 hrs UTC

Location: London Heathrow Airport
Aircraft Type: Boeing 787-8
Operator: Ethiopian Airlines

At approximately 1550 hrs UTC on 12 July 2013 a Boeing 787-8 of Ethiopian Airlines, registration ET-AOP, suffered an event at London Heathrow whilst the aircraft was parked on stand, with no persons on board. The initial witness and physical evidence shows that this event resulted in smoke throughout the fuselage and extensive heat damage in the upper portion of the rear fuselage.

In exercise of his powers the Chief Inspector of the Air Accidents Investigation Branch (AAIB) has ordered that an investigation into this serious incident be carried out, in accordance with the Civil Aviation (Investigation of Air Accidents and Incidents) Regulations 1996 and the Standards and Recommended Practices of Annex 13 of the International Civil Aviation Organisation (ICAO). The sole objective of the investigation is to determine the causal and contributory factors of this serious incident, with the intention of preventing a recurrence. It is not the purpose to apportion blame or liability.

In accordance with these international standards and recommended practices, the National Transportation Safety Board (NTSB), USA, representing the State of Design and Manufacture, and the Civil Aviation Authority of Ethiopia, representing the State of Registry and Operator, have been invited to appoint Accredited Representatives to participate in the investigation, along with advisors from the Federal Aviation Administration, Boeing Commercial Airplanes and Ethiopian Airlines. The AAIB has also invited the participation of the EASA (European Aviation Safety Agency) and the UK CAA (Civil Aviation Authority) as advisors to the investigation.

This team, under the direction of the AAIB, has initiated the technical investigation into the event. The aircraft is currently located in a hangar at London Heathrow. There has been extensive heat damage in the upper portion of the rear fuselage, a complex part of the aircraft, and the initial investigation is likely to take several days. However, it is clear that this heat damage is remote from the area in which the aircraft main and APU (Auxiliary Power Unit) batteries are located, and, at this stage, there is no evidence of a direct causal relationship.

Ethiopian 787 fire update

UPDATE: saw this on avherald.com if true then Boeing may have caught a break:

The aircraft fire is unrelated to the batteries. This will be confirmed tomorrow in a boeing press conference. Fire is strongly believed to be as a result of galley overheat - failure of coffee heater trip switch which was left on.Burnt out much of the galley and area above causing deep damage to aft bh and rudder/elevator system. Aircraft sadly a write off - unless pride of hull loss/p.r dictates repair even if economically un-viable."

Thus far there is still no word on what may have sparked the fire on ZA261 (LN 44, ET-AOP) but investigators from the UK's AAIB (Air Accident Investigation Branch) with NTSB and FAA personnel to support (along with Boeing) are enroute to London to begin the formal investigation into the fire.

The events in London, this afternoon, has not had an effect of 787 operations around the world.  Indeed, airlines continue to operate the aircraft in revenue service but are keeping a close eye on event at Heathrow.

Boeing continue production testing of the 787s at Everett with two flights today: ZA468 (LN 116, A7-BCG) and ZA186 (LN 105, JA832J).  I'll update the blog as more information becomes available.


Full 787 List

Current 787 Production List

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787 Monthly Delivery Tracking

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787 June 30, 2013 update

At the end of the 1st quarter 2013, Boeing was struggling to re-right the 787 ship in light of the lithium ion battery issues which had forced a grounding of the aircraft.  One quarter later the ship is righted and with it the deliveries have re-commenced.  Boeing had several Dreamliners waiting for delivery when the FAA had lifted the grounding.  Boing delivered 7 aircraft in May and 9 in June with delivery later in the summer poised to be at higher rates. 

Production did slow down as Boeing had spent most of this month in reconfiguring and reconstructing the main 787 final assembly line in building 40-26.  Because of this and the Temporary Surge Line in 40-24 being used exclusively for 787-9 final assembly, 787-8 production from Everett was essentially stopped.  Aircraft still rolled off the line as these were loaded prior to June but there won't be too many 787s rolling out in Everett during July.  Still, we should see the 1st 787-9 rolling off the line in July and most 787s coming out of 40-26 or 40-24 were ones that were already assembled but needed to finish some minor assembly tasks during the next one month.

To date Boeing has delivered 17 787s to customers. They have 29 post-L/N 66 Dreamliners waiting for delivery as well which I believe they should deliver by the end of September. Boeing should be able to assemble 24 more 787s through mid November from all three lines.  It takes Boeing about 6 weeks from roll out to deliver the aircraft in to the customer though this varies from customer to customer. Additionally, Boeing should be able to deliver 9 787s from EMC in the next 6 months.  This would total 62 787s delivered in the second half of the year.  Combined with the 17 already delivered and the total project 2013 787 deliveries should be around 79.  This total would not include the 787-9 built this year.


Full 787 List

Current 787 Production List

Delivered 787 List

787 Monthly Delivery Tracking

787 Customer Delivery

 

More progress on the 787 return to flight

As the 8 airlines get closer to resuming their 787 service I've updated the list below since new information has been coming out:

ANA - early June (after completing test flights and pilot training)
Air India - around mid May
Ethiopian - April 27
JAL - early June (after completing test flights and pilot training)
LAN - unknown
LOT Polish Airlines - June 5
Qatar Airways - end of April
United Airlines - May 31st but may be able to restart earlier

Today the amended Airworthiness Directive was posted in the Federal Register thus making the FAA's certification of the battery fix official.  Any US registered 787 can now fly with the battery fix. Already Japan and Europe has followed the FAA's lead on this as has approved of Boeing's fix though I also expect that India, Ethiopia, Chile and Qatar will all follow suit fairly quickly.  The first set of 787s should be completed by now.  LOT Polish Airlines is (or already has) ferrying its 787 stranded in Chicago to Addis Ababa where a Boeing team is there to install the battery fix on the 4 aircraft belonging to Ethiopian.  Word is that LOT's second aircraft, which is currently in Warsaw, will also be flown to Ethiopia for the fix.  Qatar 787 that was stranded at London Heathrow was ferried back to Doha for the fix and one United jet at LA was ferried to San Antonio, Tx. for the repairs.

Given Japan's approval of Boeing's fix, ANA announced that starting this Sunday, May 28th, their 787s will fly about 230 test flights in order to re-train their team of 787 pilots as well as reassure their passengers that the airplane is safe to fly one.  They plan on resuming regular passenger service in June.  ANA is also looking to see a resumption of 787 deliveries with ZA512 (LN 82, JA818A) being the first 787 to be delivered since the grounding in January. It can be delivered as early as late next week but ANA pilots still have to fly the customer flights on this airplane. 

Outside of this one pending delivery, I can see LOT Polish, Air India, JAL and even China Southern and Hainan taking deliveries in May. In June we can see deliveries to Thomson, Qatar, JAL, ANA and ILFC being made.  I do expect that Boeing will now be aggressive in their production flight test program as they need to clear the inventory sitting at Everett and Charleston.

Lastly, a reader sent me this link to a video from the BBC detailing the 787 battery fix work that is going on in Ethiopia.

 

Boeing gives upbeat assessment of 787 during earnings call

 During the 1st quarter 2013 earnings call, Boeing CEO Jim McNerney gave an upbeat assessment of the 787.  Despite the lack of 787 deliveries in the past quarter Boeing's earnings managed to stay strong given increased deliveries of the 737 and 777.  Now that the FAA has given approval to the lithium ion battery fix Boeing is prepared to resume deliveries around early May.

Among the information on the 787 that was passed along during the call were:

• Installation has begun on 10 in service 787 and 9 production aircraft thus far.
• Boeing initiated  a rate break to 7 aircraft/month.
• All engineering work on the 787-9 is completed.  Final assembly will start by mid year (I'm expecting very late May. First flight this fall and first delivery in the first half of 2014.
• 787-10 interest remains very high and Boeing anticipates formal launch "soon."  With delivery slots sold out Boeing may have to look at a further increase in the 787 production rate beyond 10/month and this issue is currently under evaluation.  The rate must be stabilize at the 10/month before consideration of a rate increase beyond that rate.
• Travelled work is close to 0 and part shortages are minimal.
• Most of the battery work should be completed by mid May on the in service 787s.
• The per unit cost of producing each 787 has come down 60% from LN 8 to LN 100.
• Boeing is maintaining its delivery guidance of more than 60 787s this year and said that 15% to 20% will be delivered in the second quarter.

Assuming a delivery goal of 65 787s this year this would mean that Boeing is planning to deliver between 10 and 13 787s by the end of June. It is possible to get a better idea of the total deliveries for this year when the number of deliveries during the 2nd quarter is known.

 

FAA give it's blessing to Boeing's 787 fix

The FAA, as expected, approved Boeing's plan to retrofit the 787s with new batteries and a new containment system to eliminate the risk of fire and electrolyte spills in the two E/E bays. Very importantly the 787 doesn't loss its ETOPs 180 certification meaning they can fly as much as 3 hours from a divert airport.  I do believe that Boeing will still pursue the ETOPS 330 certification but the FAA will make them jump through hoops for that which they will do. While the AOG (aircraft on Ground) teams from Boeing are in position, Boeing still needs to ship the kits to the locations where each aircraft is while GS Yuasa will be shipping out the new batteries to those same locations as well.

Now that the FAA has given approval the next step is for Boeing's AOG teams along with airline maintenance personnel to start preliminary work on the aircraft until they get the first kits and replacement batteries.  They will in stall them at which point it's up to the each country's aviation regulators to sign off on the modification and lift the grounding on the 787 based in that country.  The FAA says they will send out instructions to the operators detailing the fix and then publish the final airworthiness directive in the Federal Register making the approval official.  It is after that that any US-based airlines with the 787 whose aircraft has been modified under the directive will be allowed to resume revenue service of the 787.  This would apply to United Airlines as it is currently the only US operator of the aircraft but typically foreign aviation regulators follow suit.  One exception though maybe Japan's JCAB.  They may require more stringent oversight of the lithium ion batteries including more frequent visual inspections and more detailed monitoring of the voltage in each battery.

The timeline to get these airplanes flying again doesn't end with the regulators tamp of approval for each of the airlines. The carriers must engage in flight training as well as scheduling the resumption of service and, of course, sell tickets for those flights.  Some carriers may re-substitute the 787 in place of the aircraft type currently flying certain routes while other will re-start routes like the Tokyo-Boston route serviced by JAL when the fire broke out at Logan.  Routes that were temporarily suspended will likely take longer to get back on line but I see that happening by June. Still I do believe that Boeing will be able to complete work on all 50 aircraft in about 6 weeks. Each AG team has about 30 members (this jives with what I reported in an earlier post with a team in Ethiopia).  There are 10 teams that are deployed though for certain there must be several teams in Japan as well as one in Qatar and Ethiopia.  The 787s that have to be modified are in 9 different countries including the United states so it would be reasonable to assume that there are 2 teams in Japan as there are 23 787s on the ground in that country that need the modification.  I anticipate that one team each will be sent to Chile, Germany, the UK, Qatar, India, Ethiopia, Poland, and one will be in the US.

So when can flights resume? Well Ethiopian has been vocal about resuming flights next week which is possible just as long as the fix is in place and that the Ethiopian aviation regulators sign off.  Qatar Airways is also eyeing restarting revenue flights by the end of April.  I don't expect JAL and ANA to start flying until mid May at the earliest.  United is currently evaluating when they can restart their service.

Deliveries are also the minds of 787 watchers.  Boeing is concurrently modifying the 787s at Everett and Charleston.  So far as I know there are three airplanes that have the battery fix:

ZA272 (LN 86, SP-LRC) for Polish LOT
ZA512 (LN 83, JA818A) for ANA
ZA380 (LN 34, B-2725) for China Southern

The later was supposed to make its first flight today but it didn't come to pass and may fly tomorrow.  One thing Boeing made clear is that they do intend to still deliver 60+ 787s this year per their guidance but they also said that production flight testing will have to be aggressively ramped up. I still believe that Boeing will have to deliver on average of 8 787s per month in order to meet heir guidance. They have to clear the current ready to deliver backlog of 34 aircraft (doesn't include any 787s that will be added to this pile in the next few months) thus they would probably clear this backlog over the next 5 to 6 months.  What is uncertain is which aircraft (other than the aforementioned three aircraft) will be delivered first.  We do know that 31 787s between Everett and Charleston will need to be modified first but I don't know which one have already been modified or of the order in which they'll be modified.  We'll only know when these airplanes take to the sly for their first flight.

When everything is all said and done, it does look like that Boeing's gamble to keep up with the current full rate production of 5/month will pay off...just as long as they can deliver the backlog sitting in Washington and South Carolina.

Here's the FAA Press Release announcing the approval:

FAA Approves Boeing 787 Battery System Design Changes

For Immediate Release
April 19, 2013
Contact: Laura Brown
Phone: (202) 267-3883

---

WASHINGTON, D.C. – The Federal Aviation Administration (FAA) today took the next step in returning the Boeing 787 to flight by approving Boeing's design for modifications to the 787 battery system. The changes are designed to address risks at the battery cell level, the battery level and the aircraft level.
Next week, the FAA will issue instructions to operators for making changes to the aircraft and will publish in the Federal Register the final directive that will allow the 787 to return to service with the battery system modifications. The directive will take effect upon publication. The FAA will require airlines that operate the 787 to install containment and venting systems for the main and auxiliary system batteries, and to replace the batteries and their chargers with modified components.
“Safety of the traveling public is our number one priority. These changes to the 787 battery will ensure the safety of the aircraft and its passengers,” said Transportation Secretary Ray LaHood.
“A team of FAA certification specialists observed rigorous tests we required Boeing to perform and devoted weeks to reviewing detailed analysis of the design changes to reach this decision,” said FAA Administrator Michael Huerta.
To assure proper installation of the new design, the FAA will closely monitor modifications of the aircraft in the U.S. fleet. The FAA will stage teams of inspectors at the modification locations. Any return to service of the modified 787 will only take place after the FAA accepts the work.
As the certifying authority, the FAA will continue to support other authorities around the world as they finalize their own acceptance procedures.

Next here is Boeing's Press Release:

Boeing to Begin Modifying 787s as FAA Approves Battery Improvements

- Modifications to existing fleets to begin; deliveries to resume soon

- Boeing to provide customers support for return to service

EVERETT, Wash., April 19, 2013 /PRNewswire/ -- Today's approval of battery system improvements for the 787 Dreamliner by the U.S. Federal Aviation Administration (FAA) clears the way for Boeing (NYSE: BA) and its customers to install the approved modifications and will lead to a return to service and resumption of new production deliveries.
"FAA approval clears the way for us and the airlines to begin the process of returning the 787 to flight with continued confidence in the safety and reliability of this game-changing new airplane," said Boeing Chairman, President and CEO Jim McNerney. "The promise of the 787 and the benefits it provides to airlines and their passengers remain fully intact as we take this important step forward with our customers and program partners."
The FAA's action will permit the return to service of 787s in the United States upon installation of the improvements. For 787s based and modified outside the United States, local regulatory authorities provide the final approval on return to service.
Approval of the improved 787 battery system was granted by the FAA after the agency conducted an extensive review of certification tests.  The tests were designed to validate that individual components of the battery, as well as its integration with the charging system and a new enclosure, all performed as expected during normal operation and under failure conditions. Testing was conducted under the supervision of the FAA over a month-long period beginning in early March.
"The FAA set a high bar for our team and our solution," said McNerney. "We appreciate the diligence, expertise and professionalism of the FAA's technical team and the leadership of FAA Administrator Michael Huerta and Secretary of Transportation Ray LaHood throughout this process.  Our shared commitment with global regulators and our customers to safe, efficient and reliable airplanes has helped make air travel the safest form of transportation in the world today."
Boeing, in collaboration with its supplier partners and in support of the investigations of the National Transportation Safety Board and the Japan Transport Safety Board, conducted extensive engineering analysis and testing to develop a thorough understanding of the factors that could have caused the 787's batteries to fail and overheat in two incidents last January.  The team spent more than 100,000 hours developing test plans, building test rigs, conducting tests and analyzing the results to ensure the proposed solutions met all requirements.
"Our team has worked tirelessly to develop a comprehensive solution that fully satisfies the FAA and its global counterparts, our customers and our own high standards for safety and reliability," said Boeing Commercial Airplanes President and CEO Ray Conner. "Through the skill and dedication of the Boeing team and our partners, we achieved that objective and made a great airplane even better."
Boeing also engaged a team of more than a dozen battery experts from across multiple industries, government, academia and consumer safety to review and validate the company's assumptions, findings, proposed solution and test plan.
The improved battery system includes design changes to both prevent and isolate a fault should it occur. In addition, improved production, operating and testing processes have been implemented. The new steel enclosure system is designed to keep any level of battery overheating from affecting the airplane or even being noticed by passengers.
"This is a comprehensive and permanent solution with multiple layers of protection," said Conner.  "The ultimate layer of protection is the new enclosure, which will ensure that even if a battery fails, there is no impact to the airplane and no possibility of fire. We have the right solution in hand, and we are ready to go.
"We are all very grateful to our customers for their patience during the past several months," said Conner. "We know it hasn't been easy on them to have their 787s out of service and their deliveries delayed. We look forward to helping them get back into service as quickly as possible."
Boeing has deployed teams to locations around the world to begin installing improved battery systems on 787s. Kits with the parts needed for the new battery systems are staged for shipment and new batteries also will be shipped immediately. Teams have been assigned to customer locations to install the new systems.  Airplanes will be modified in approximately the order they were delivered.
"The Boeing team is ready to help get our customers' 787s back in the air where they belong," said Conner.
Boeing will also begin installing the changes on new airplanes at the company's two 787 final-assembly plants, with deliveries expected to resume in the weeks ahead. Despite the disruption in deliveries that began in January, Boeing expects to complete all planned 2013 deliveries by the end of the year. Boeing further expects that the 787 battery issue will have no significant impact to its 2013 financial guidance.