On Sunday 7-8-07, Boeing premiers its first new commercial airplane in 12 years, the 787 Dreamliner. This premier is only an exhibit of the structure of the plane, none of the components from seats to flight controls are installed yet. Still, I believe the 787 will fly as scheduled at the end of August. Boeing estimates that a Dreamliner will only take 3 days to manufacture once production and manufacturing capabilities are in full swing. Even though Boeing is still in the development stage this test flight “prototype” for the August, the manufacturing and production methods are likely being developed alongside the prototype construction. Thus, with the components being developed and tested independently, it is reasonable to assume the completed components can be fully installed in a matter of days. The only difference with the actual production model is the prototype will still require time for the components to be tested together in the plane and ultimately, a test flight at the end of august. With the first scheduled delivery in May 2008, I believe all these concerns about shortage of bolts and cost overruns will be solved by then. The much more efficient production methods of the 787 should more than make up for any cost overruns in the early stages of the 787 production. And remember, about 50% of Boeing’s business is defense, which is also in super-bull mode. Don’t just look at Boeing as a commercial plane manufacturer. If Boeing can blow up million dollar test rockets for fun and you never see it hit its EPS, some cost overruns for the 787 wouldn’t matter much either. Read the rest of this entry »