Boeing sets 787 first delivery for third quarter

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.