Update Rundown: First Flight Delayed

The conference call ended a little while ago and I wanted to give a rundown of what we heard.

It's worth noting that this writer attempted to ask a question on the call and was blocked from doing so.

Now to the key points:

- First flight has been delayed. It is expected to take place somewhere between Mid-November and Mid-December. Entry into service is still set for May 2008.

- The cause of the delay is two parts. Problem was first reported here at Flightblogger.
1. Temporary fasteners
- Lack of documentation
- Unavailability of permanent fasteners.
- 700something left to be installed.
2. Flight control software
- It's just not ready yet and working with Honeywell to resolve issues.

- Carson: A 1-3 month delivery day will not carry financial penalties.

- Aeroflot finalized its order for 787 bringing the total orders to 706

- Trent 1000 engines certified August 8. GENx certification program is proceeding.

- Once the flight test program begins a new aircraft will join 2-3 weeks. Testing will happen 24 hours a day 7 days a week. There is almost no buffer left.

- Boeing confirmed the re-sequencing of deliveries. The fatigue test will jump in front of Dreamliner Two which is now set to arrive in October.

- Static test rig will move to 40-23 later this month.

Conference Call Coverage - 11:03 AM

Glen Farley: Which problem is biggest contributor to delay?

"It's a horse race to see who will contribute to the delay most."

CALL ENDED

Conference Call Coverage - 11:01 AM

What's going on at Alcoa? Removing temporaries causing damage?

"Working with Alcoa on a daily, hourly basis to get the fasteners we need. The set up puts out one wad of bolts at a time. Substitute (flightworthy) fasteners being used, they however add weight to the aircraft."

"700something fasteners left to install."

What type of new tests for 787?

Composite material testing. Standard certification testing is ahead of us. More electric architecture is being tested with really good results."

Conference Call Coverage - 10:50 AM

Dominic Gates: Have you located everything you've needed to locate on Dreamliner One? What about damage when removing the parts?

"Not indicative of follow on aircraft. No worries about how follow on aircraft will be. Partners are focused. Under size fasteners used as to not damage structure."

Carson:

"1-3 month delay would have little impact on contracts."

Conference Call Coverage -10:44 AM

Fasteners missing, how many?

"Thousands not installed or unavailable. Primary problems in wings and center wing box."

Conference Call Coverage - 10:38 AM

"Less than half of flying is for certification. It's for our own information purposes. Four planes flying by early 2008."

Is the electronic tracking systems broken?

"No. All the digital tools have done what we've expected them to. The airplane goes together perfectly. We didn't digitally simulate missing thousands of fasteners."

Conference Call Coverage - 10:31 AM

James Wallace: What's up with the documentation work? Time line for aircraft entry to the test program?

"You can't do anything on an airplane if you don't have paperwork. Fasteners jumbled up the way the airplane was put together. You can't rush it, you gotta get it right."

"Follow on airplanes will go into flight test program every two to three weeks."

Conference Call Coverage - 10:27 AM

How do you intend to keep your credibility? (first A380 comparison)

"Tell the world exactly what's going on with the program. You won't know what you have to deal with until you have to deal with it. We'll get this airplane in the air, and we'll get to flight test."

Conference Call Coverage - 10:22 AM

When will the supply chain be fully ready?

"We're focused on modular build. 10-20 units before we get the work re-sequenced."

Conference Call Coverage - 10:19 AM

Questions:

Flight test sequence for program?

"Unchanged, this delay is eating into the buffer that was built in to the program."

Higher speed flight. 24/7 Flight test program to be expected.

What extent did the roll out add to current challenges?

"Roll out NOT a factor. We didn't have a handle on it until it showed up in the factory."

Conference Call Coverage - 10:15 AM

Flight Control System

To be delivered later this month. Working with Honeywell and adding resources to ensure that all challenges are met.

Accomplishments and Weight Status:

Static rig will move to 40-23 late this month.
Trent 1000s certified August 8, GENx coming alone nicely.
Some partners have already started work on airplane 10.
RTO brake tests goals met.

Weight production plans. LN7 will be on the scales at target weight next year.

Now open to questions.

Conference Call Coverage - 10:10 AM

Bair:

Major Issues

Traveled work
Two factors
1. Global fastener shortage
2. Documentation didn't match what arrived from suppliers.

3rd airplane will be fatigue test. Delivery in October confirmed.

Conference Call Coverage - 10:07 AM

Delivery date is still planned for May 2008. "We intend to perform for that commitment."

Mike Bair is taking over.

Conference Call Coverage - 10:06 AM

Scott Carson:

New Single year sales record for the 787. 706 total orders. "Immersed in the hard work of building an airplane."

2 Primary Issues

Traveled work
Flight control systems

FIRST FLIGHT LATE MOVED TO FALL
MID NOVEMBER - MID DECEMBER

Conference Call Coverage - 10:02 AM

Yvonne Leach has just opened the conference call. Here we go.

Conference Call Coverage - 9:57 AM

9:57am EDT

Good morning all.

I just joined the call and was welcomed by the sound of elevator music. By my watch, this should be getting underway in the next three minutes. In case you missed it, James Wallace at the Seattle Post-Intelligencer published an article today detailing that the first flight may slip to November. Most notably He confirmed the content of the piece I published Tuesday:

In addition to this travel work that shifted from partners to final assembly in Everett, the large composite 787 sections of the first plane arrived in Everett with tens of thousands of temporary fasteners because of an industrywide fastener shortage.

They must all be replaced with permanent ones before the plane can fly. That has become far more time-consuming than Boeing initially thought.

One issue is the time it is taking mechanics in Everett to locate many of the temporary fasteners. They are supposed to be painted red for easy identification.

But Boeing has had to follow a tedious paper trail to document where many of the temporary fasteners were placed by its partners.

Jon Ostrower, who runs an aviation Web site called Flightblogger, posted a story Tuesday that quoted sources as saying that the removal of the temporary fasteners damaged some of the composite parts of the aircraft, causing time-consuming repairs.

Sources confirmed the report to the P-I.