James McNerney, the chairman and CEO of Boeing today admitted that the execution of the 787 Dreamliner programme “was not good”, describing the failings of the craft before and after launch.
The first Boeing 787 was delivered 3 years ago in 2011. It was behind schedule, with the craft suffering a series of problems after launch. Initial issues were found with engines and fuselage followed by fuel leaks, cracks in the windshield, and later malfunctioning lithium-ion batteries causing the entire global fleet to be grounded in January earlier this year.
The CEO said: “We implemented technologies that were too quick to the market place, hadn’t fully matured yet,”. He further added, “It ended up costing us a lot more money than we had anticipated and it was difficult for many people in our organization and our customers,”.
In May, Boeing suffered further from discovering hairline fractures in the wings of its yet to be delivered 787s, resulting in additional delays to the manufacturer’s target delivery dates.
Deviation from production schedule impacted costs related to the 787 programme and it crossed Boeing’s $25 billion forecast for the programme in the third quarter of this year.
“The programme is profitable, but I think it’s fair to say we were not as profitable as we hoped to be at this stage,” the CEO said.
Despite issues in production, Boeing witnessed a record order backlog during its fiscal third quarter at $490 billion, with a 7 per cent increase in revenue year-on-year to $23.8 billion and 13 per cent increase in net income to $2.4 billion.
Source: Gulf Business