Tuesday, December 22, 2009

Boeing's Big Flight

Forbes (Oxford Analytica) - The maiden flight of Boeing's 787 presages good things for the aircraft maker.

Boeing's new 787 wide-body jetliner made its maiden flight on December 15. However, rollout of the aircraft has been dogged by a series of development delays, which will cost the company millions of dollars in compensation to customers. Getting the 787--Boeing's main new contender in the key high-margin wide-body market segment and a platform for several new technologies--back on track is vital to securing the company's future in its ferocious competition with Airbus.

The most significant question is whether Boeing can meet the exceptionally ambitious monthly production targets it has set for itself; if not, the company faces further program losses and may sacrifice its current competitive advantage over Airbus.

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