SFGate: Boeing 787 Demand Stretches Into 2011

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Monday, May 22, 2006 (AP)
Boeing 787 Demand Stretches Into 2011
By ALLISON LINN, AP Business Writer


   (05-22) 15:06 PDT SEATTLE, (AP) --

   Boeing Co. has snagged enough firm orders and tentative commitments for
its new 787 airplane to fill its production schedule into 2011, a top
executive said Monday.

   Mike Bair, vice president and general manager of the 787 program, told
reporters and analysts in a conference call that the company remains on
track to deliver the first 787 to All Nippon Airways in the early summer
of 2008. From there, he said the company is essentially sold out for
production into early 2011. But he warned that some airlines may not
follow through on their tentative commitments, leaving a bit of wiggle
room in that schedule.

   Bair said the company was evaluating whether to boost production rates
after 2010, and hoped to make a decision by the end of June. The company
has logged 350 firm orders for the 787, plus another 43 tentative
commitments.

   At the end of June, Boeing also expects a major piece of the first Boeing
787, the part of the fuselage where the wings attach, to start production
at Japan's Fuji Heavy Industries Ltd. Boeing and its production partners
are already fabricating parts for the airplane, but this would be one of
the first major assembly pieces, the company said.

   The 787's 2008 entry into service is two years before Airbus SAS's rival
airplane, the A350, is currently planned to enter service. Airbus has said
that it may consider modifying the A350 after criticism from airlines and
jet leasing companies, but a final decision is not expected until July.

   Although Airbus has had some troubles with the A350 design, Bair said
Boeing is assuming that the rival airplane maker will provide a formidable
challenge.

   "We've always assumed that Airbus would have a very viable competitor," =
he
said. "... It would be really imprudent not to have that as sort of your
basic assumption."

   Boeing plans a family of 787 jets, with the smallest capable of carrying
250 passengers and the largest 330 passengers. Its long-range version will
carry up to 290 passengers 8,800 nautical miles. Boeing says the planes
will use 20 percent less fuel on comparable flights than similarly sized
airplanes today.

   At present, Airbus plans two versions of the A350, one capable of carryi=
ng
253 passengers up to 8,800 nautical miles, and the other able to
accommodate 300 passengers on flights of 7,500 nautical miles. ------------=
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Copyright 2006 AP

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