787 Schedule, $2.5bn charge announced

Boeing’s Press Release: Note webcast at 0700 PDT referenced at the end.

The 787 is to fly by the “end of the fourth quarter” and frst flight in the 4th quarter of 2010. Production rate to 10/mo is now projected in late 2013, a year later than planned on the previously revised schedule.

Boeing said there is no forward loss position, an analysis forecast by Goldman Sachs and Buckingham Research in notes within the last two weeks. But Boeing also said the test airplanes have no commercial value due to the rework necessary and a $2.5bn charge is taken on the first three airplanes.

Boeing said the new schedule includes “several weeks” of margin. The press release also indicated that testing to validate the structural fixes required for the wing-to-body join are required. This means uncertainty and risks remain, with CEO Jim McNerney saying “design details and implementation plan[s] are nearly complete.”

Teal Group analyst Richard Aboulafia, contacted by KOMO Radio (Seattle), called the 787 now a “show-me program.”

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