First 787 Delivery still scheduled for late 2010

Wearing the livery of launch customer All Nippon Airways (ANA), Boeing 787-881 (40691/2) N787EX rotates off Rwy 13R at Boeing Field (BFI/KBFI) on a flight test sortie.

(Photo by Michael Carter)

Boeing is on track to deliver its first 787 Dreamliner to All Nippon Airways by the end of this year, the company's head of commercial planes said.

"Testing is going well. If there are no unexpected discoveries, we'll be on track," said James Albaugh chief executive of Boeing Commercial Airplanes.

Production of the carbon-composite plane was delayed five times in three years, and the first flight was postponed six times, due to a shortage of bolts, faulty design and a two-month strike at its factory.

Some market experts have said the delivery schedule for the 787, which made its first test flight in December after two years of delays, is too ambitious. Boeing has received more than 850 orders for the plane.

Boeing and rival Airbus received fewer orders in 2009 as carriers around the world were hit by falling travel demand in a sagging economy. But a recovering economy and brighter outlook for airlines point to a stronger 2010.

Boeing shares have rallied about 26 percent this year on expectations of a commercial rebound.

Commenting on the planned merger of United Airlines parent UAL and Continental Airlines, Albaugh said he expected the carriers to profit from the deal.

He sidestepped a question on whether the two airlines could cancel some outstanding aircraft orders as a result of the merger, saying only that he had sent the companies congratulatory notes via email.

Both Continental and United have order for Boeing planes, including 35 single-aisle 737s and 50 787s.

"I expect they will rationalize their fleets," Albaugh said, without being more specific.

Albaugh also said Boeing still plans to announce in June whether it will increase production of its 737 single-aisle plane from its current rate of 31 planes per month. The company has not yet said by how much it would raise the production rate.

(Reuters)