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<< Previous   of   Next >>   ADVERTISEMENT   Related Stories • Boeing may again delay Dreamliner's first flight 1/15/08 • 787 still on track, say Boeing officials 12/11/07   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Thursday, November 15, 2007 Can Boeing pull off new 787 goals? An analyst questions whether the company can accomplish its new production schedule, but still sees Boeing as an attractive investment. By Michelle Dunlop Herald Writer EVERETT -- The Boeing Co. continues to battle skepticism over its ability to meet new deadlines for its delayed 787 Dreamliner jet. Earlier this week, Scott Carson, president of Boeing Commercial Airplanes, told ATW Online that the 787 is progressing slightly ahead of the company's schedule. But Carson's confidence hasn't soothed Wall Street's jitters. On Wednesday, an analyst with Bear Sterns labeled Boeing's aggressive production goal for its delayed Dreamliner a "near Herculean task," according to a Dow Jones report. The analyst, however, still views Boeing's stock as offering a "relatively attractive risk-reward profile" over the coming six months. Boeing's stock closed down 91 cents at $92.79, continuing a downward trend that started just before the firm announced the 787 delay on Oct. 10. The Chicago-based aerospace company will update investors and media on the status of the fuel-efficient 787 jet in December. The update will be the first to feature the new 787 leader, Pat Shanahan, who was appointed to replace former program Vice President Mike Bair in late October. Under Shanahan, Boeing intends to begin flight testing on the 787 by the end of March. The first Dreamliner will be handed over to Japan's All Nippon Airways by the end of next year, the company says. Despite a six-month setback to the 787 program, Boeing anticipates delivering 109 Dreamliner jets by the end of 2009. That would leave the company just three 787s shy of its original goal. That steep of a production ramp-up for a plane that has yet to fly will pose a "major challenge" to Boeing, the Bear Sterns analyst said. The comments on Wednesday echo those uttered by many industry observers over the past five weeks. Boeing officials have pointed to a shortage in fasteners as a major factor in the Dreamliner's delay. The company also had trouble putting together the first Dreamliner due to the amount of "traveled work" -- or incomplete work -- from its major partners. Boeing relies on major global partners to build key 787 structures and ship them to Everett for final assembly. Former 787 chief Bair recently noted that the company may look to centralize its supplier base for its next new jet program to simplify the process. This isn't the first time an analyst's doubts have driven Boeing's stock down. In early October, a Lehman Brothers analyst suggested that Boeing should adjust its 787 schedule by four to six months. Boeing officials initially downplayed the analyst's comments, but within a week the company went public with the six-month delay. Since its launch, the Dreamliner has attracted 738 firm orders from 51 customers. Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.

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