Virgin nervous over Boeing delivery
Virgin is in an $8 million over 15 Boeing Dreamliners, but the plane maker is having development problems that could delay delivery. Stephen Beard reports Virgin is already talking about compensation.
Virgin Airlines plane (Torsten Blackwood, AFP/Getty Images)
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Doug Krizner: Virgin Atlantic is reportedly in talks with Boeing about compensation for the late delivery of the 787 Dreamliner. Stephen Beard has more from London.
Stephen Beard: Virgin has ordered 15 Dreamliners with an option on a further 28 aircraft. The list price of the deal: around $8 billion.
But the airline is getting nervous about delivery due to development problems with the new plane. Last week, Boeing said it would have to redesign parts of the 787. Analysts say this will inevitably lead to further delay.
Howard Wheeldon is an aviation expert with the BGC broker group:
Howard Wheeldon: In terms of delivery, we're talking about the second half of 2009 for the first delivery. That's a year late. So it is serious.
Virgin says it's already begun talks with Boeing over the levels of compensation. Other carriers who've placed orders for the popular new plane are almost certain to follow suit. Boeing has refused to comment.
In London, this is Stephen Beard for Marketplace.
