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Boeing says some areas late on 787 program
Posted by: Admin


Business and Economy LONDON, July 16 (Reuters) - Boeing Co.'s (BA.N: Quote, Profile, Research) head of commercial planes said on Sunday some areas of its fast-selling 787 Dreamliner are behind schedule, but that should not push back the new lightweight mid-sized plane's entry into service scheduled for 2008.
The comment, made by Boeing's Alan Mulally at a London briefing on the eve of the Farnborough International Airshow, comes shortly after rival Airbus (EAD.PA: Quote, Profile, Research) was thrown into disarray by a delay in production of its A380 superjumbo and design problems with its mid-sized A350.

"Some areas are ahead of schedule, some areas are behind where we want to be," Mulally said, when asked about the 787 program. "That's the nature of making new airplanes." He did not specify which areas were late.

He added the new plane, to be built mostly from carbon fiber and titanium to save weight and cut fuel costs, was still over its target weight, but declined to say by how much.

The plane, which has almost single-handedly turned around Boeing's fortunes, capturing 360 firm orders in only two years on the market, is still on track for its first test flight in the middle of next year and delivery to customers in 2008, Mulally said.

He said Boeing would not unveil plans for the much-anticipated stretched version of the new plane, the 787-10, at Farnborough, but said the planemaker has already been working with airlines such as British Airways (BAY.L: Quote, Profile, Research) on such a design.

He left open the possibility of more orders for its latest jumbo, the 747-8, saying the passenger version -- which has only one anonymous customer so far -- has been getting a "very positive response."

"We're talking to them (airlines) right now," Mulally said, without identifying which. Large sales of Boeing's 787-8, which can seat up to 450 passengers, would be a blow to Airbus, which is looking to dominate the very large end of the market with its A380, the largest ever commercial passenger jet, which will be able to seat more than 500 people.

Sources told Reuters earlier on Sunday that Dubai-based airline Emirates [EMAIR.UL] is set to announce an order for 10 747-8 freighters, in a deal worth $2.8 billion at list prices. Officials at Emirates and Boeing declined to comment.

Mulally said he felt no pleasure in the turmoil at Airbus as it hits snags in the design of production of its new models.

"We're very compassionate about Airbus -- we're in this business," he said. "New airplanes are very hard ... they'll figure it out."

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