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Air China sees no impact as Boeing delays deliveries

By Wang Ying (China Daily)
Updated: 2010-09-01 11:43

A man photographs the Rolls-Royce engine of a Boeing Co 787 Dreamliner airplane. [Simon Dawson / Bloomberg]

Airline companies could source models from other manufacturers

SHANGHAI - Chicago-based Boeing's decision to postpone delivery of its 787 Dreamliner aircraft will not significantly impact Chinese airline carriers' future operations, industry sources said.

China's airline carriers ordered a total of 60 Boeing 787s, each priced at about $200 million.

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"This is not the first time that Boeing has postponed the delivery date. We should have received the first batch of 787 aircraft as early as June 2008," said a senior executive with Beijing-based Air China Ltd who asked not to be named.

Boeing announced the postponement on its website on Aug 27.

"The delivery date revision follows an assessment of the availability of an engine needed for the final phases of flight testing this fall. While Boeing works closely with Rolls-Royce to expedite engine availability, flight testing across the test fleet continues as planned," said Boeing in a statement.

The aircraft manufacturer had planned to launch the 787 in 2008, but a parts shortage and redesign work led to delays.

According to an industry source, Air China is considering replacing the delayed Boeing 787 aircraft with other models.

"The advanced notice gives us plenty of time to find alternatives. As far as Air China is concerned, this will cause little impact to our operations," said the executive. Air China ordered 15 Boeing 787s costing a total of $3 billion.

Xie Bin, board secretary of China Southern Airlines Co Ltd, said he was unable to comment as he has not heard from Boeing yet. The Guangzhou-based carrier ordered 10 Boeing 787s.

Luo Zhuping, board secretary of China Eastern Airlines Co Ltd, declined to comment. Calls to Shanghai Airlines Co Ltd and Hainan Airlines Co Ltd went unanswered.

The Boeing 787, which was designed to mainly service longer routes, is seeing growing demand from domestic carriers.

"It's because Chinese airlines are keen to explore the international market," said Gao Shiliang, an analyst from Central China Securities.

A short supply of Boeing 787s will not significantly affect airline carriers' operations as substitutes will be sourced, said Gao.

The Boeing 787 model can accommodate 200 to 300 passengers. Its archrival Airbus is also developing a model of similar size, the A350, and will also mainly be used in medium and long-distance flights. The first A350 is expected to enter into service in mid-2013

All Nippon Airways Co (ANA), the first recipient of the Boeing 787, stated that delays of 787 deliveries will not affect its earnings for the current fiscal year.

ANA spokeswoman Megumi Tezuka said the carrier was requesting from Boeing immediate delivery dates beyond the first aircraft delivery in February 2011.