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Boeing adjusts 747-8 program production and delivery schedule

Boeing [NYSE: BA] today announced an adjusted schedule for production and delivery of the 747-8 Freighter and Intercontinental airplanes.

The revised schedule is based on a production and flight-test plan developed in conjunction with the company's suppliers that provides additional time for addressing issues that have slowed the program's progress. Those issues include supply chain delays driven by design changes to the airplane, limited availability of engineering resources inside Boeing, and the recent Machinists' strike that halted production in the company's factories.

Delivery of the first 747-8 Freighter will move from late 2009 to the third quarter of 2010. The first 747-8 Intercontinental passenger jet delivery moves from late 2010 to the second quarter of 2011.

"Our entire team has worked hard to mitigate growing schedule risk on this program but have been unable to overcome the collective impact of work statement increases to the original design, a tight supply of engineering resources, and the recent Machinists' strike," said Boeing Commercial Airplanes President and CEO Scott Carson. "We are clearly disappointed in what this schedule change means for our customers, employees, suppliers and other stakeholders. However, it is the appropriate and prudent decision to ensure a successful program, and we are committed to working with our customers to mitigate any disruption it causes them."

The revised schedule is the result of a comprehensive assessment of the production system and flight-test plan that began in late August and concluded with the incorporation of the impact of the recent strike.

"The remaining work on the 747-8 program is well defined," said Ross R. Bogue, vice president and general manager -- 747 Program and Everett site. "This schedule adjustment provides the time we need to finish that work and bring both airplanes to market successfully for our customers."

The risk of a schedule adjustment on the program was previously identified and was provisioned for in Boeing's third quarter financial results. The company will provide updated financial guidance and a post-strike assessment of the schedule for all its commercial airplane programs at a later date.

Press release issued by Boeing Commercial Airplanes on November 14, 2008


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