Boeing 787 wing flaw extends inside plane
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The wing damage that grounded Boeing's new composite 787 Dreamliner occurred under less stress than previously reported — and is more extensive.
Estimates by the two engineers of the minimum time needed to fix the problem suggest the plane is now unlikely to fly until next year.
Until the new production timetable is announced, Wall Street analysts are unable to calculate the precise additional cost of this latest delay.
Analyst Joe Campbell, of Barclays Capital, this week downgraded Boeing's stock. He cited an increased risk that the company will book a large accounting loss this year to cover the extra expense of the repeated delays.
In a note to clients, Campbell estimated the total cost overrun of the Dreamliner program so far — extra startup and engineering costs, penalties owed to customers for delivery delays and contractual obligations to suppliers for engineering changes — as "in the vicinity of $11 billion."
Because 850 Dreamliners have already been ordered, Campbell still believes the jet can be "highly profitable" over two decades of full production.
But with that level of cost overrun, Campbell said, "Boeing is highly likely to lose large sums of money on the first 400 to 600 aircraft."
Dominic Gates: 206-464-2963 or dgates@seattletimes.com
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