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Customers Disappointed In Latest Boeing 787 Delays

Boeing customers expressed disappointment but no surprise at the latest delay in delivery of the flagship 787 jetliner -- and they want compensation.

SYDNEY, Australia (AP) -- Boeing customers expressed disappointment but no surprise Thursday at the latest delay in delivery of the U.S. company's flagship 787 jetliner -- and they want compensation.
 
Some carriers said the delays would not affect their operations because they had already been factored in and contingency plans organized, including leasing planes from Boeing's rival, Airbus. Others said they were still assessing the potential impact.
 
Chicago-based Boeing Co. said it was pushing back its 787 deliveries by another six months, postponing the jet's debut in commercial service until the third quarter of 2009. It is now more than a year behind schedule.
 
The delay -- the third revision of its delivery schedule -- was a further jolt to Boeing's credibility and would likely cost it billions of dollars in additional development costs and penalties.
 
''We are ... very disappointed that Boeing has again delayed the delivery schedule,'' said Geoff Dixon, the chief executive of Qantas Airways, which has 65 of the new Boeing planes on order.
 
''That said, we did anticipate a further delay and have been working on contingencies for some time.''
 
Those plans include deals already secured to lease six Airbus A330s, with discussions under way to lease more planes.
 
Dixon said Qantas was entitled to ''substantial liquidated damages'' under its purchase agreement with Boeing -- he did not say how much -- and that the funds would be used to offset leasing costs.
 
Japan's All Nippon Airways, which ordered 50 of the 787s, also signaled frustration with Boeing.
 
''We are extremely disappointed: This is the third delay in the delivery of the first aircraft, and we still have no details about the full delivery schedule,'' the company said in a statement.
 
Nana Kon, an ANA spokeswoman, said the airline has yet to assess the impact of the delay until a whole delivery schedule becomes available. ''We had so much expectations because the 787 has better fuel efficiency and we planned to fly them this year,'' she said.
 
Air New Zealand, which has eight 787s on order, said it was disappointed at the delay. Chief financial officer Rob McDonald said the airline said had enough flexibility in its existing fleet to ensure capacity is not affected.
 
''However, we are yet to determine if there will be any impact on our network expansion plans,'' McDonald said in a statement.
 
Singapore Airlines, which has ordered 20 of the jets, said it was still waiting for advice from Boeing on the status of their deliveries.
 
To date, Boeing has booked some 892 orders from nearly 60 customers, making the 787 order backlog worth $151 billion.
 
Boeing has not said how much penalties for late deliveries will cost the company.
 
While the airlines expressed frustration, some analysts said the delays could actually be good for carriers' earnings by constraining expansion plans at a time when demand for air travel is
softening.
 
''Further delays will provide B787 customers ... with windfall compensation benefits at a time when they could otherwise be incurring start-up losses on new international routes,'' Sydney-based consultancy the Center for Asia Pacific Aviation said in a briefing note.
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