Boeing rolls out 787s at faster pace; could mean strong Q4

Monday, 13 May 2013 00:00 - - {{hitsCtrl.values.hits}}

REUTERS: Boeing Co said last week it has succeeded in getting its factories to churn out 787 Dreamliners at a faster pace this week, a change that came sooner than expected and positions the plane maker to possibly deliver more of the high-tech jet than forecast.

Deliveries of the high-tech jet have not yet resumed since they were suspended in January after two batteries overheated, Boeing said. However, its forecast of delivering more than 60 Dreamliners by year-end has not changed.

Analysts said that by reaching the new rate of seven Dreamliners a month in May, rather than mid-year, Boeing could easily exceed that target.

“I think you could see a very strong fourth quarter,” said Ken Herbert, an analyst at Imperial Capital in San Francisco.

He reckoned that by taking seven jets a month as the average for the year, Boeing could build 84 Dreamliners this year. But not all of the jets produced in 2013 will be delivered, since each plane requires time for test flights.

Boeing said the first plane at the new rate rolled out of the factory last week, up from five a month previously.

Boeing is working to speed up the assembly line to produce 10 Dreamliners a month by year-end, spokesman Scott Lefeber said. Boeing typically does not announce precise dates for production shifts.

“We are on plan with our production rate increases,” Lefeber said.

Boeing is doing construction on the main production line in Everett, Washington, and has a “surge” line at that factory for additional production. Lefeber said. The second assembly line for the 787 is in North Charleston, South Carolina.

Boeing delivered just one Dreamliner this year before deliveries halted on 16 January, when regulators grounded the worldwide fleet of 50 planes following two separate incidents in which lithium-ion batteries overheated on the planes.

Regulators last month approved a redesigned battery system that adds more protection against fire. Boeing is retrofitting the existing jets, and airlines are putting them back into service.