787 certification, September delivery nears

Boeing Co. says it expects to finish flight tests for the 787 Dreamliner this weekend and to get the jet certified by the Federal Aviation Administration next week - in time to meet its target of delivering the plane in September. Delivering the plane to its first customer, Tokyo-based All Nippon Airways, will be "difficult," just as other milestones have been, Jim Albaugh, the Chicago-based planemaker's commercial chief, said Thursday at a conference hosted by Jefferies & Co.

in New York. "The good news is we only have 24 hours left in our flight test program, and we hope to complete the flight test program probably sometime this weekend," Albaugh said. "We think the FAA will hold their type certification review board next week, and we hope to get our ticket so we can start delivering the 787 yet this month." The Dreamliner, the world's first composite-plastic airliner, is more than three years behind schedule amid struggles with the new materials and production system Boeing developed for it. It's still Boeing's most popular new plane ever, with about 830 orders from 52 customers, and is sold out through 2019, Albaugh said. Components of the 787 are being manufactured in Tulsa by Spirit AeroSystems Inc. and NORDAM Group. Those companies have not been mentioned concerning problems with suppliers. The production ramp-up is the next challenge, he said. In July Boeing froze the assembly line for another month to let suppliers catch up. The rate will go back to two a month beginning in a week or so and then will rise to 2.5 about a month after that, with increases continuing until workers reach 10 a month in 2013, Albaugh said. That will be a record rate for a wide-body aircraft. The supply chain "looks pretty good," Albaugh said, adding that the "pinch point" is still the South Carolina factory that Boeing purchased from Vought Aircraft Holdings Inc. and Global Aeronautica. That plant assembles part of the fuselage for the 787 and is adjacent to a new facility Boeing is setting up for final assembly. The 747-8, another airliner that is the biggest version of the jumbo jet Boeing has ever built, has completed its flight tests and should receive FAA approval in a couple of weeks, with first delivery also in September, Albaugh said. The improvements will extend the life of the 41-year-old aircraft by another three or four decades, he said. Albaugh said he wouldn't be surprised if Boeing takes in more orders this year than it fills. The company booked new contracts for 19 more 777s in the past week, bringing its net orders so far this year to 268. Boeing said last month it will deliver 485 to 495 planes in 2011. The Tulsa World Business staff contributed to this story. SUBHEAD: Although plagued by delays, the plane has sold well.