Tags: Boeing | jet | Delivery | Target

Boeing Misses 2011 Delivery Target Amid 787 and 747-8 Delays

Thursday, 05 January 2012 12:31 PM

Boeing Co. failed to deliver as many of the new 787 Dreamliner and 747-8 jumbo jets as planned in 2011 after turning each model over to its first customer in the second half, years behind schedule.

The planemaker delivered three Dreamliners and nine 747-8 freighters, lagging behind the combined goal given in October of 15 to 20 of the aircraft. Overall, 477 jets were released to customers last year, Boeing said today in a statement. The forecast was for 480.

For the composite-plastic Dreamliner, “we expect lumpy deliveries and are therefore not overly concerned with 3-4 deliveries slipping out of 2011 and into 2012,” Jason Gursky, a Citigroup Global Markets Inc. analyst, said in a note yesterday. Timing is significant, because Boeing gets about 40 percent of the payments from airlines upon delivery.

All Nippon Airways Co. expected its third 787 to reach Japan this week, after signing for the plane on Dec. 30, said Ryosei Nomura, a spokesman. The jet had been due in November but was held back by production delays.

The setback forced the Tokyo-based carrier -- the first to operate the Dreamliner -- to postpone the start of 787 services to Beijing by a month and disrupted the plane’s introduction on flights to Frankfurt.

A new 787 assembly line in South Carolina and the temporary surge line being constructed next to the initial one in Washington state are in good shape, Citigroup’s Gursky said.

787 Orders

That suggests Boeing can meet its goal of producing 10 787s a month by 2013 once it finishes reworking jets built during the three-year delay to the plane’s entry into service, he wrote.

The company reported 25 new orders for the 787 today, yielding a net gain of 13 for 2011. A total of 32 cancellations for the composite plastic jet last year had previously outpaced 20 orders.

Boeing fell 1 percent to $73.56 at 11:39 a.m. in New York trading. Before today, the shares climbed 1.3 percent this year.

Deliveries are due to start this year of the 747-8 Intercontinental, the passenger version of Boeing’s biggest model, the planemaker has said. The first handover had been set for late 2011.

Boeing delivered 73 of its 777s, 20 767s and 372 of the 737, the world’s most widely flown plane.

The Chicago-based planemaker’s larger rival, Airbus SAS, beat its target of handing over 520 to 530 planes this year, two people familiar with the figures said. Airbus’s final tally will be several more than 530, said the people, who asked not to be identified before an official announcement on Jan. 17.

Airbus Orders

Through November, Airbus had raked in 1,378 net orders, including about 1,200 firm purchases of the European company’s new A320neo, an upgraded version of the single-aisle jet. Boeing’s net-order tally was 805, and the planemaker has a total backlog of 3,771 aircraft.

Airbus delivered 477 planes through November, compared with Boeing’s 426. On that basis, Toulouse, France-based Airbus has surpassed Boeing every year since 2003.

Both planemakers are boosting production to work off record order backlogs, and Boeing last month began selling its upgraded 737 MAX jet to counter the success of Airbus’s A320neo.

“Whereas 2011 belonged to Airbus thanks to the neo, we expect 2012 to be the ‘Year of Boeing’ due to robust orders, production rates, cash flow, and deliveries,” Gursky wrote.

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Thursday, 05 January 2012 12:31 PM
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