Boeing finds cause of 787 fire; no new delivery date

  • Michelle Dunlop Herald Writer
  • Wednesday, November 24, 2010 2:58pm
  • Business

The Boeing Co. has determined the cause of an electrical fire that occurred two weeks ago on a 787 test plane but hasn’t said how long its Dreamliner program will be delayed.

Boeing has deemed debris in an electrical panel as the culprit of an electrical fire that forced the company’s second 787 to make an emergency landing Nov. 9 in Laredo, Texas.

“Boeing is developing a plan to enable a return to 787 flight test activities and will present it to the U.S. Federal Aviation Administration (FAA) as soon as it is complete,” said Scott Fancher, vice president of the 787 program, in a statement.

The company is working on “minor” design changes to the electrical panel and updates to systems software. In the meantime, the company’s six 787 test airplanes remain grounded.

Boeing said Wednesday that it is assessing the time required to complete the design changes and software updates that are being developed. A revised 787 program schedule is expected to be finalized in the next few weeks.

This will be the seventh major delay for Boeing’s 787, which initially was to enter commercial service May 2008.

Industry speculation about the severity of the incident has varied widely over the last two weeks, with analysts estimating delays from a few months to over a year.

Randy Tinseth, Boeing’s vice president of marketing, disputed recent reports that an inadvertently left behind tool was the source, saying that a tool was too big and that the object would have been “something small.”

“We’re taking the right steps to ensure the power distribution panels are better protected against foreign debris,” Tinseth wrote on his blog. “In addition, we’re improving the 787’s software to help it better isolate faults.”

Boeing’s stock has taken a beating over the last two weeks. On Nov. 9,

the day of the electrical fire, Boeing shares opened at $70.27. Over the next two weeks, Boeing’s stock dropped 9.5 percent by closing Nov. 23.

Today, Boeing’s stock rebounded nearly 2.9 percent to close at $65.41.

For the 787-8 program, Boeing depended heavily on its global partners. Some of those suppliers didn’t live up to the task, forcing Boeing to buy out Vought and Global Aeronautica and closely supervise others. The company has said for its 787-9 program it is bringing back some work to the Puget Sound area.

Boeing has more than 840 orders for its fuel-efficient 787, which is made largely of carbon fiber composite material.

The Dreamliner deliveries schedule had been in question even before the electrical fire, with some 787 customers saying their aircraft were being delayed by as much as 10 months. Boeing denied that a delay was in the works.

Many of the 787s that Boeing already has built will need modifications to incorporate issues found in flight testing, including the new software and panel changes.

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