More delay for the Dreamliner plane
Once again, Boeing is announcing a delay in delivery of the popular Dreamliner airbus. At least one airline is already talking about compensation for the delays. Stephen Beard discusses the repercussions.
Boeing 787 (Boeing photo)
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Renita Jablonski: Boeing is canceling another delivery date for its Dreamliner. The Times of London broke the story. Our man in the U.K., Stephen Beard, is with us now. Stephen, sounds like yet another setback for the big U.S. aviation company.
Stephen Beard: That's right. According to the Times, the 787 Dreamliner could now be delivered 18 months behind schedule. It was supposed to be next month. That slipped until the end of the year. Now, Boeing will announced later today that the new plane will not be ready until the end of next year.
Jablonski: This is the second delay that's been announced. I imagine that Boeing is going to have to start paying up to the airlines affected by this.
Beard: That's right. This is a particular blow for Boeing, because the 787 has been an incredibly popular aircraft. Boeing's taken something like $150 billion worth of orders. We've already had Virgin Atlantic saying that it's discussing the subject of compensation with Boeing. And according to the Times of London, British Airways is going to be the carrier worst hit by this delay.
Jablonski: What about Boeing investors? Is any sort of backlash expected at Boeing executives?
Beard: Well, this has to be a possibility. I mean, since the first delay was announced last year, the share price has fallen by something like 25%. And you've had institutional investors on this side of the Atlantic complaining about the drip drip of bad news about this project.
Jablonski: All right, our Stephen Beard in London. Thanks a lot, Steven.
Beard: OK, Renita.
