Business

<< Previous   of   Next >> Associated Press  (click to enlarge) A Boeing 787 sits in a paint hangar at the plant in Everett in April. Boeing delayed the first test flight of its long-awaited 787 jetliner, citing a need to reinforce part of the aircraft.   ADVERTISEMENT   Related Stories • Tampa runway closed after 737's tires blow 6/27/09 • Smoke spurs 737 to make emergency landing 6/26/09   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Friday, June 26, 2009 Qantas cancels order for 15 Boeing 787 Dreamliners By Michelle Dunlop Herald Writer EVERETT -- Qantas Airways, the airline with the most Boeing Co. 787 jets on order, has canceled 15 Dreamliners and delayed another 15 787s, citing economic concerns. The Australian carrier said Thursday that its decision reflected the recession and was not driven by Boeing's latest delay on the 787, announced just two days earlier. "The agreement we have reached with Boeing will provide greater certainty going forward in terms of our fleet renewal and growth strategies as well as broader resource planning and matching capacity with demand," said Alan Joyce, Qantas chief executive, in a statement. In its agreement with Boeing, Qantas said it will defer the delivery of 15 787-8 aircraft for four years and cancel orders for 15 787-9 jets. On Tuesday, Boeing postponed the first flight of its fuel- efficient 787, which was expected to take to the skies by June 30. The Dreamliner already was nearly two years behind schedule. Boeing said it had detected a structural weakness in points along where the mostly composite 787's wing meets its fuselage. Boeing has not given a new schedule for first flight and first delivery, though analysts have predicted a delay of several months. "The latest delay is disappointing, but we do not expect it to impact the Qantas Group, given these changes to our delivery program," Joyce said. "We remain committed to the aircraft as the right choice." Hit by dwindling air traffic, the Qantas Group further cut capacity in April, reduced its staff, and said it had deferred deliveries of four Airbus A380 superjumbo jets and 12 Boeing 737s. Qantas indicated then that it was in discussions with Boeing over its 787 orders. The group includes both Qantas and its subsidiary, low-cost carrier Jetstar. Before the latest delay, Boeing had planned to deliver the first 787 to All Nippon Airways in February 2010, nearly two years behind schedule. Qantas' Jetstar had expected delivery of 787s beginning in mid-2010. "Delaying delivery, and reducing overall B787 capacity, is prudent, while still enabling Qantas and Jetstar to take advantage of growth opportunities and market demands, both domestically and internationally," Joyce said. Qantas' cancellation reduces the airline's total firm 787 orders to 50 from 65. The airline retains options for 50 additional Dreamliner jets. Japan's All Nippon Airways also has orders for 50 787s. Only lessor International Lease Finance Company has more Dreamliners on order, with 74 unfilled requests. As of June 23, Boeing had received 58 cancellations for its 787 this year. A Boeing spokeswoman did not return phone calls to clarify whether Qantas' cancellation was included in the 58. Through June 23, Boeing has just nine net orders for the year. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

1. Good grief! 2. Swine flu lingers, making traditional flu season unpredictable 3. Two vie to serve as Snohomish County prosecutor 4. Last hurrah for Huskies’ Locker? 5. Koster for Congress? He’s still undecided 6. Here’s how home foreclosure sales really work 7. A store credit card can save you cash, but is it worth it? 8. New site sought for Snohomish pool project 9. Families get an early gift: free Christmas trees 10. Prep Roundup: Lake Stevens wins two wrestling meets 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• Wildcats fall to familar foe in semis • ‘Nutcracker' times three • Road warrior • Mavericks reloading • Holiday Lightings & Santa Sightings • Cities prepare for winter blast repeat • Wolfpack duo takes last shot at state tourney • This Weekend in Your Town • Tips for the stormy season • Boeing will build, flight test and deliver 787s in South Carolina to spe ... • Snohomish County EDC promoting job growth in key industry clusters • $4 million grant to advance brain tumor research has Everett links • Providence medical center construction tops off its 12-story steel frame ... • Tulalip affordable housing project to be financed by KeyBank, Raymond Ja ... • Arlington's Lak of Ink has a growing following for Luke Kooyman's creati ... • Bank of the Northwest formed • Cascade Bank earns $1.6 million