"Dreamliner" faces more set-backs

This is not the first time Boeing has delayed the unveiling of its highly-anticipated 787 model, said to be the most environmentally friendly aircraft ever built. In June, the announcement of a fifth delay came against the backdrop of the worst financial crisis in 60 years - and as engineers struggled to repair more structural deficiencies.

However, Boeing maintains that the Dreamliner aircraft, which began production in April 2004, will make its first flight by the end of this year, while initial deliveries to airlines should occur in the fourth quarter of 2010.

With 850 orders from 56 customers already confirmed, many airline heads are frustrated by yet another launch set-back by Boeing, which is already two years behind schedule.

Japanese carrier "frustrated"

Japan's All Nippon Airways is at the very top of the delivery list as it was the first to order 50 Dreamliners. "We understand the need to make the best and safest aircraft possible and appreciate that delays due to engineering issues of the current nature must be solved in order to move forward and achieve this," the airline said in a statement. "However, as a launch customer and future operator of the 787, the length of this further delay is a source of great dismay, not to say frustration."

Boeing CEO Alan Joyce said the company would know within the next few months exactly what this delay means for the initial 787 deliveries.

Once operating at full capacity, Boeing plans to build planes at a rate of 10 per month. Made predominantly out of carbon fiber rather than aluminum, Boeing says the Dreamliner will consume 20% less fuel than other similarly-sized planes.

Lower operating costs will therefore make airline travel more affordable, says Boeing.

Meanwhile, Boeing's largest competitor, European manufacturer Airbus, is developing a new long-range A350 plane to compete with the Dreamliner. Despite not expecting to launch for several years, the A350 has already racked-up 500 orders from 30 customers.

WTO competition ruling expected soon

Next week, the World Trade Organization will deliver a preliminary ruling on a long-running dispute between the two airliner manufacturers over EU financial aid for Airbus's A350.

In 2003, Boeing filed a complaint with the administration of former President George W. Bush, saying decades of EU support for Airbus had hurt Boeing's market share.

Recently, Britain pledged 340 million pounds (390 million euros/$550 million) in development loans to Airbus, while Germany and France promised 1.1 billion euros ($1.6 billion) and 1.4 billion euros ($2 billion) respectively.

"It is our aspiration that this decision will give very clear guidance to other parties that want to build large commercial airplanes," Ted Austell, Boeing's vice president for government of operations, told reporters.

The ruling could have significance for other countries considering aid for domestic civilian aircraft manufacturers, including: Brazil, Canada, China, and Russia.

The dispute between Boeing and Airbus is considered to be the largest in WTO history. A final public ruling is expected at the end of the year.

vj/dpa/Reuters/AFP

Editor: Rick Demarest