Boeing Delays 747-8 First Flight, Sees $1bn Billion Q3 Charge

Today, Boeing have announced that their 747-8 Freighter program is
suffering further delays as production costs have gone North due to
design issues. Delaying the first flight and delivery on their
commercial aircraft unit to 2010 instead of Q4 2009, means that the
company will take a nearly $1 billion third-quarter charge which is a
big blow to the world s second-largest aircraft-maker.

Boeing 747-8 is the stretched version of the 747 jumbo we've seen in the
air for so many years, and although it's expected to be more technically
advanced (with improved aerodynamics) and cheaper for a carrier to
operate it, the new aircraft is not a winner already. Up until today,
only Deutsche Lufthansa AG are interested in their passenger version
while the freighter version has 78 angry customers lined up.

The whole 747-8 programme is a big question mark, said Brian Nelson
at Morningstar in Chicago. Should Boeing really be wasting resources on
the 747 given the demand or should they reallocate them to the 787? In
any case, Boeing s third-quarter results are going to be very, very messy.

After the announcement on Tuesday, Boeing shares traded slightly lower
at $52.21 in New York.