Business

<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Tuesday, January 13, 2009 Boeing and Airbus face a tough 2009 Many analysts say Boeing's problems with its 787 run deeper than Airbus' A380 woe Associated Press PARIS -- For many of us, the New Year is about making resolutions -- but for rival planemakers Airbus SA and Boeing Co., 2009 will be about keeping promises. Both face production challenges in getting their delayed flagship jets to airline customers who are eager to put newer, less fuel-hungry jets into service. The Chicago-based planemaker is beset by problems with its 787, which analysts say look greater than the troubles Airbus faced with its A380 superjumbo. Boeing last month announced a fifth set of delays for its long-haul 787 that will set back delivery for two years. Analysts said multiple problems with everything from design to parts and suppliers could push the timetable even farther back. Sandy Morris, an analyst at ABN Amro in London, said Boeing's problems with the 787 are "in a different league" than those faced by Airbus with the A380 because they seep deeper into the design and production process. Airbus mishandled what was essentially a problem of "two wires being too short and not meeting," he said. Scott Hamilton, an aviation consultant and managing director of Leeham Co. in Issaquah, said the 787 problems are "far more systemic than they were with the A380 and will take longer to resolve." The 787 is designed as a midsized, long-haul jet that seats between 210 and 330 passengers. It will be the first large passenger jet made with a lightweight composite fuselage, making it about 20 percent more fuel efficient than the 767 it is replacing. The first delivery is now scheduled for the first quarter of 2010. Hamilton said Boeing will find it difficult to keep its "aggressive timetable." The problems are heightened by the numbers of customers waiting for the 787: at 910, that's more than four times the customers for the A380. Marko Lukovic, an industry analyst with Frost & Sullivan consultancy in London, said that despite the problems, the hot-selling plane "is a product that is worth waiting for." Two years ago, it was Airbus' flagship jet that hit the headlines with wiring problems and a series of management missteps that cost the planemaker billions. Investigators are still looking into stock sales by company executives and shareholders at the aerospace and defense giant before a June 2006 announcement of delays for the A380. Airbus parent EADS shares tumbled 26 percent in one day when those problems were revealed. Airbus finally delivered the first superjumbo in late 2007 and a key challenge of 2009 will be accelerating production to meet its delivery schedule. Last year the planemaker met its target of 12 deliveries. But Louis Gallois, head of EADS, said in November that Airbus might not make its goal of 21 deliveries this year. Airbus has booked 198 orders for the 525-seat jet. Morris said the Airbus philosophy of shuttling large numbers of travelers between hub airports in superjumbos makes more sense in a troubled economic climate. Boeing argues that passengers are willing to pay more to fly directly to their chosen destination, without changing at a hub. Meanwhile, Airbus is pressing ahead with its A350 XWB, the plane designed to compete with the 787. Details on the financing plans and design specifics may be revealed on Wednesday at a ceremony in Toulouse, France, to mark the laying of the first stone of the final assembly line. Airbus had to redesign the plane after customers balked at an earlier version. It has 478 orders for the medium capacity long-haul aircraft, which is due to enter service in 2013. In 2009, Airbus will also have to deal with its embattled A400M military transport program which EADS said on Friday requires a "new approach." With a raft of technical difficulties yet to be resolved, EADS said deliveries won't start until three years after the first flight, which was originally scheduled for the end of last year. It hasn't set a new date for the maiden flight. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

1. Man arrested in fatal shooting of brother 2. Highway 9 crash victims memorialized 3. Taxes needed to close state's growing deficit? 4. Confrontation led to elderly man's death, police say 5. Fire sends shoppers fleeing JC Penney at Alderwood 6. Snohomish salon owner has a venture with style 7. Pearl Harbor's voices of the past 8. Vikings’ Henderson breaks leg against Cardinals 9. Boeing shares soar as 787 first flight draws near 10. New law aims to deny some felons bail 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• Wildcats fall to familar foe in semis • ‘Nutcracker' times three • Road warrior • Mavericks reloading • Holiday Lightings & Santa Sightings • Cities prepare for winter blast repeat • Wolfpack duo takes last shot at state tourney • This Weekend in Your Town • Tips for the stormy season • Boeing will build, flight test and deliver 787s in South Carolina to spe ... • Snohomish County EDC promoting job growth in key industry clusters • $4 million grant to advance brain tumor research has Everett links • Providence medical center construction tops off its 12-story steel frame ... • Tulalip affordable housing project to be financed by KeyBank, Raymond Ja ... • Arlington's Lak of Ink has a growing following for Luke Kooyman's creati ... • Bank of the Northwest formed • Cascade Bank earns $1.6 million