Boeing: Dreamliner will fly by end of 2009

ByABC News
August 27, 2009, 9:33 PM

— -- Boeing said Thursday that its often-delayed 787 Dreamliner would take to the air for the first time before year's end and that the first delivery of planes to airlines would be late next year.

Boeing also said it would take a $2.5 billion charge against earnings, or $2.21 a share, in the current quarter on the plane. That's a write-down of the value of the first three 787s used in testing.

The 787 is the first jetliner made mostly of high-tech composite materials rather than conventional aluminum and steel. The lightweight plane promises to lower airlines' operating costs as much as 20% compared with similar conventional jetliners.

The plane originally was to have had its maiden test flight two years ago. It has been delayed five times. The latest came when the company said it needed to reinforce an area on the side of the plane.

Boeing officials calmed concerns of some investors and analysts who had worried that delay costs and penalty payments for late delivery could turn the 787 into a money-loser for the first year or two after deliveries start.

James Bell, Boeing's CFO, told analysts and reporters that the company wouldn't lose money on the first copies of the 787 delivered. In July, he declined to offer assurances until the company determined how much the latest delay would cost.

Boeing CEO Jim McNerney acknowledged that "this program has had its challenges, and there still is work to be done." But he insisted that the "787 and the fundamental innovation it represents remains on track to become a true game-changer for our airline customers."

Despite delays, Boeing still has a record-shattering number of orders for 787s, more than 800, on its books.