787 Delay Threatens Qantas Cost and Emission Cuts

[Mike W]

http://www.theaustralian.news.com.au...-23349,00.html

Steve Creedy, Aviation writer | November 07, 2008

LONG-TERM Qantas moves to reduce costs and cut carbon emissions may be under threat.

This is because of predictions that Boeing's 787 delivery schedule to 2012 will be drastically cut.

Boeing confirmed this week that the troubled aircraft would not fly until next year after a 58-day strike stopped production and it discovered about 3 per cent of the fasteners in the first four planes were incorrectly installed.

The US aerospace giant's announcements came as Jetstar said its first deliveries could be up to six months late and may not arrive until May 2010.

The immediate problems may have some advantages for Qantas as it cuts capacity in the current economic crisis, but longer running delays will limit its ability to reduce costs through fleet replacement.

A report by respected US analysts Bernstein Research backs up predictions from Jetstar and US sources that there will be no Dreamliners delivered next year.

Continues