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Boeing Still Faces 787 Delays

SEATTLE ( TheStreet) -- The good news for Boeing (BA - Get Report) on Friday was that All Nippon Airways, the launch customer for the long-delayed 787, said it expects its first aircraft in February, which is in line with the most recent schedule for the long-delayed aircraft.

The bad news involved press reports of previously unknown delays to other early customers. In a prepared statement issued late Friday, Boeing said "today's press reports about new 787 delivery timing for several customers appear to be based on the program schedule announced in August."

Delays are not unfamiliar to the 787 program; the first delivery to ANA was initially scheduled to take place in May 2008. While delay costs have not been wholly quantified , Boeing has so far taken $3.5 billion in charges (both cash and non-cash) associated with delays in the 787 and the 747-800 freighter.

Trade journal Aviation Week reported Friday that Boeing has told several of its early 787 customers about delivery delays of up to 10 months.

Korean Air will get its first 787 in August 2012, ten months later than previously planned, Aviation Week and Flightglobal reported. Air India now is believed to be scheduled to receive its first 787 in September or October 2011 instead of April, Aviation Week reported. Japan Airlines will take delivery of its first 787 in June 2011 at the earliest, compared with a previous March delivery date.

Boeing is facing various issues and late design changes that must be incorporated into new aircraft as well as twenty-two 787s that have been completed and parked, the publication said.

Wall Street has been taking the delays in stride. Boeing shares closed Friday at $71.27, up 42 cents. For the year, Boeing is up 32% and is the third best performer in the Dow average, which is up about 10%. However, in after-market trading Friday, Boeing shares were down $1.57 to $69.70.

-- Written by Ted Reed in Charlotte, N.C.

>to contact the writer of this article, click here: Ted Reed

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