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Airlines lining up for Boeing 787 compensation
Reuters ^ | Thu Apr 10, 2008 | Adrian Bathgate and Aiko Hayashi

Posted on 04/10/2008 5:52:58 AM PDT by MHalblaub

WELLINGTON/TOKYO (Reuters) - Airlines lined up on Thursday for compensation after Boeing Co announced a further six-month delay for its new 787 Dreamliner plane, with Air New Zealand, Air India and Japan's two big carriers eyeing redress.

The U.S. plane maker announced the third major delay for the revolutionary plane on Wednesday, promising first delivery in the third quarter of 2009, more than a year after the original target of May this year -- with an indefinite delay for a short-range model favoured by the Japanese carriers.

Air New Zealand and Air India AI.UL said they would seek compensation. All Nippon Airways (ANA) , due to get the first 787 off the assembly line, and Japan Airlines said they planned claims after assessing the impact. [...]

(Excerpt) Read more at uk.reuters.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: 787; aerospace; boeing; compensation; delays
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1 posted on 04/10/2008 5:52:59 AM PDT by MHalblaub
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To: MHalblaub

Please, oh please don’t do an Airbus...


2 posted on 04/10/2008 5:59:24 AM PDT by DB
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To: MHalblaub

How can an experiance company like Boeing be this far off on their estimate?


3 posted on 04/10/2008 6:01:30 AM PDT by jaydubya2
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To: jaydubya2
How can an experiance company like Boeing be this far off on their estimate?

I think the executive culture has changed over the last 10-15 years in all manufacturing companies. At one time the older, experienced engineers became department heads and moved on up the ladder. They knew how things worked and what needed to be done to get a product to market. Today many of those positions are held by "bean-counters" who only see the bottom line and have no concept of engineering problems and what it may take to solve them. As a result you get a product that doesn't perform as advertised or is the dickens to manufacture, driving up costs while producibility suffers. I work in a segment of the "military industrial complex" and too many times I've heard "we'll fix it later".

4 posted on 04/10/2008 6:18:52 AM PDT by ladtx ( "Never miss a good chance to shut up." - - Will Rogers)
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To: jaydubya2
How can an experiance company like Boeing be this far off on their estimate?

Maybe you should be reading Dilbert? Places like Boeing are infested with know-nothing managers who think that as long as they write (or borrow) some "procedure" and enforce it upon people who actually know what they're doing everything will turn out just peachy-keen. (Think of a modern day Leo Durocher telling Willie Mays not to make basket catches, and you'll get the idea.) Even worse, these managers look for subcontractors who run their operations the same way. Everything is about schedules and PowerPoint presentations, and little is about whether new things being developed are actually being developed or whether they might actually perform as promised.

At least from my little window, things are really f'ed up. (See my post from last August about the 787 schedule.)

ML/NJ

5 posted on 04/10/2008 6:32:10 AM PDT by ml/nj
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To: ladtx

I read on another thread that outsourcing to the extent of the 787 project (70%) is one reason for the delays. Apparently Boeing does not have experiance with this degree of outsourcing.


6 posted on 04/10/2008 6:33:48 AM PDT by jaydubya2
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To: ml/nj
Same problem in my industry. Punks that have no idea what it takes to actually fabricate a product develop an overly aggressive schedule, then blame the floor workers when it falls behind deadline.
7 posted on 04/10/2008 6:37:18 AM PDT by jaydubya2
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To: ladtx
Today many of those positions are held by "bean-counters"

You just described most of the wireless telecom industry, too. Were it not for no-nothing bean counters and big gubmint bureaucrats at the FCC, we would have had the wireless technology currently in use over 10 years ago......

8 posted on 04/10/2008 7:01:04 AM PDT by Thermalseeker (Silence is not always a Sign of Wisdom, but Babbling is ever a Mark of Folly. - B. Franklin)
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To: jaydubya2
Obviously, your company needs to create a manufacturing process education department. But, first it will need plans, and of course it will have to find money in existing budgeting. Maybe maintenance, repair and new equipment. Those floor guys seem to produce no matter what is dumped on them, so they must have slack......

..and so on.

9 posted on 04/10/2008 7:19:54 AM PDT by Leisler
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To: jaydubya2
How can an experiance company like Boeing be this far off on their estimate?

Two words: SOX Compliance.
10 posted on 04/10/2008 7:58:26 AM PDT by bamahead (Avoid self-righteousness like the devil- nothing is so self-blinding. -- B.H. Liddell Hart)
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To: MHalblaub

“Vista” anyone? I hope they work better than Vista


11 posted on 04/10/2008 8:06:54 AM PDT by arnoldc1
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To: MHalblaub

They’ve already blown through eight contingency plans? I was willing to say they’re pushing technology here so give them a break because you never know what will happen, but this is starting to look like incompetence.


12 posted on 04/10/2008 8:42:33 AM PDT by antiRepublicrat
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To: jaydubya2
How can an experiance company like Boeing be this far off on their estimate?

Probably the main reason is that that 787 is essentially built in sub-assemblies all over the world. Boeing just does design, testing & final assembly. Consequently you get delays when something 'doesn't fit right'. A lot of potential for delays.

13 posted on 04/10/2008 8:45:21 AM PDT by Tallguy (Tagline is offline till something better comes along...)
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To: jaydubya2

The outsourcing of work all over the world to cut costs has blown up in their face.....


14 posted on 04/10/2008 9:18:47 AM PDT by AngelesCrestHighway
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To: Tallguy
Probably the main reason is that that 787 is essentially built in sub-assemblies all over the world. Boeing just does design, testing & final assembly. Consequently you get delays when something ‘doesn't fit right’. A lot of potential for delays.

As I read it in the news it's about a redesign of the wing box. Boeing can't blame a Japanese contractor for delivering as designed by Boeing.

15 posted on 04/10/2008 9:24:28 AM PDT by MHalblaub ("Easy my friends, when it comes to the point it is only a drawing made by a non believing Dane...")
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To: ml/nj
At least from my little window, things are really f'ed up.

You have a WINDOW??!!
I am REALLY jealous.

But I do agree with your assessment.
I make my living testing new equipment or products in a lab and then preparing them for a production release.
We are being fed arbitrary timelines by our marketing division and told, "Make them work in our network."

We don't even have a say on what vendor to use. They bring us a vendor and tell us, "Make it work."

It's getting to the point that I put in 2 extra months on my estimates just to have wiggle room.

16 posted on 04/10/2008 9:26:30 AM PDT by Just another Joe (Warning: FReeping can be addictive and helpful to your mental health)
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To: MHalblaub
redesign of the wing box

And I heard it was "wiring problems." Their PR people have to blame something, and it's best to blame just one thing. The one thing should describe something that the average guy can at least comprehend. Everyone knows what a "wing" and a "box" are so "wing box" is good, even though most people would guess wrong as to what a wing box is. Here's some good news from Boeing about the 787 wing box from July 2006! (July 2006!!)

ML/NJ

17 posted on 04/10/2008 9:52:54 AM PDT by ml/nj
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To: ml/nj

My 2 cents - all previous post so far sound very familiar to me, especially the ones about management and scheduling!


18 posted on 04/10/2008 9:57:10 AM PDT by 17th Miss Regt
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To: DB; Paleo Conservative; phantomworker

Please, oh please don’t do an Airbus...

It will be a big Airbug!

The manufacturer, which has orders for almost 900 of the new planes, was this week reluctant to discuss the cost of the delays but compensation to Qantas is expected to be more than the $202 million Airbus paid in fiscal 2006 and 2007 for delays to 12 A380s.

[...]

It is understood the Australian carrier may also bring forward its search for a Boeing 747 replacement to cover any long-term problems resulting from the 787-9 delay.

This could mean more A380s, or other alternatives such as Boeing 777s or Airbus A340s.

[...]

Mr Gregg was less confident than Boeing executives that the latest schedule would be the last of the delays.
http://www.theaustralian.news.com.au/story/0,25197,23519014-23349,00.html
19 posted on 04/10/2008 10:00:38 AM PDT by MHalblaub ("Easy my friends, when it comes to the point it is only a drawing made by a non believing Dane...")
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To: ml/nj
And I heard it was "wiring problems."

Main source for the wing box problems was Steven Udvar-Hazy of International Lease Finance Company. ILFC ordered 72 B787. The “weakness” of the wing box was confirmed by Scott Carson, president of BCA. What has Boeing done since July 2006?
Leeham's summary

Mr. Udvar-Hazy also killed the first A350 design and forced Airbus to A350XWB.
The Escalating Woes at Airbus

20 posted on 04/10/2008 10:24:08 AM PDT by MHalblaub ("Easy my friends, when it comes to the point it is only a drawing made by a non believing Dane...")
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