Boeing 787 delay might affect Royal Jordanian aircraft order

The first MidEast airline to order the aircraft had been expecting to receive its first plane in 2013
Boeing 787 delay might affect Royal Jordanian aircraft order
MAJOR DELAYS: Boeing Co’s seventh postponement of the 787 Dreamliner may affect Royal Jordanian Airline’s plans to receive the aircraft
By Bloomberg
Wed 19 Jan 2011 01:42 PM

Boeing’s
seventh postponement of the 787 Dreamliner may affect when Royal
Jordanian, the first Middle East airline to order the aircraft,
receives the planes.

“Personally I
think there will be an effect, what or by how much I am waiting to hear
back,” the carrier’s chief executive officer Hussein Dabbas said in a
telephone interview on Wednesday from Amman. “We are talking to them about
this delay and they promised to come back to us by February to tell us
if there will be an effect on Royal Jordanian’s scheduled delivery or
not.”

The airline,
which operates 32 aircraft, committed to add 11 Boeing 787 Dreamliners
through direct purchases or leases. The company plans to use the planes
to fly to New York, Chicago, Detroit and Toronto and expected the first
plane to be delivered in the last quarter of 2013.

Asked if the
Jordanian carrier was discussing compensation from Boeing for the
delay, Dabbas said “it’s still too early to talk about it right now
because we still did not receive any kind of confirmation.” The
airline’s first plane is the 85th on the production line of the
aircraft manufacturer.

Boeing yesterday pushed back the 787 Dreamliner’s entry into service until the
third quarter, reflecting the fallout from the November 9 electrical fire
on one of the test planes that forced an emergency landing. Boeing
suspended Dreamliner flights for six weeks to investigate the incident
and redesign some of the jet’s power system.
                       

Boeing’s latest
target was for a first-quarter delivery as it struggled with new
materials, parts shortages, redesign work and a greater reliance on
suppliers. The blaze highlighted software flaws, and most investors
expected another four- to six-month setback, said analysts such as
Peter Arment of Gleacher & Co Securities in Greenwich, Connecticut.

Boeing faces
the risk of penalties as airlines get their 787s later than planned and
may need to pay advances to suppliers whose contracts call for payment
upon delivery of the completed, certified jet. The 787 is the first
airliner with a composite-plastic fuselage and wings, instead of
aluminum, and it has an all-electric system to save on fuel, using five
times as much electricity as a traditional jet.

Royal
Jordanian, which flies to 58 cities, plans to expand its network with
flights to Berlin in June. It is also considering starting a service
this year to Lagos, Nigeria and Johannesburg, Dabbas said in an
interview earlier this month.

For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.