Spirit AeroSystems has not resumed winding the composite barrels for Boeing’s new 787 Dreamliner, the company’s top executive said recently. Spirit halted the building of the nose sections as Boeing delayed the 787 project. “It will be several more months before we start that up,” Spirit chief executive Jeff Turner told analysts in a webcast recently.
There have been bottlenecks related to engineering changes incorporated into the airplane, Turner said.
Still, delays also have had a silver lining. “The delays in the program have allowed a lot of ‘get out of jail free’ cards” that it otherwise would not have had, Turner said. For one, “we should have a quicker ramp-up than we would have had otherwise” once the program gets into full swing since suppliers have had the extra time.
The first 500 Boeing 787s, however, will have lower margins, he said.
Spirit has made significant investments in the 787 program. “We believe in the value of this airplane,” Turner said. “We feel good about our support to the customer and stepping up to teh challenges of this program.”
What do you think? Do you think there will be more delays on the 787?
Eclipse Aviation made news this week announced it filed for Chapter 11 bankruptcy protection and that it’s found a buyer for its assets. Over the years, investors have poured more than $1 billion into the company and the development of the Eclipse 500 very light jet. Eclipse is often credited for giving rise to the new very light jet segment in business aviation.
Some start-up companies have found similar difficulties. Aviation Technology Group and Adam Aircraft, for example, have folded or gone into bankruptcy.
But should Eclipse fail to survive, don’t count the very light jet segment out.
Others are finding success. Such is the case for Cessna Aircraft’s Citation Mustang and Embraer’s Phenom 100. Both have strong backlogs of orders. Cessna plans to build 150 Mustangs at its Independence plant next year. HondaJet is expected to begin deliveries in 2011. And Diamond Aircraft, Piper Aircraft and Cirrus also have the small jets in development.
Honeywell Aerospace, in its October business aviation forecast, predicted demand potential for the very light jets and personal jets to range from 7,000 to 8,000 aircraft.
The long-estabished companies such as Cessna, Embraer and Honda, are financially more able to weather economic downturns. And Cessna and Embraer are more experienced at bringing a new plane to market.
AAI Acquisition, which bought the assets of bankrupt Adam Aircraft earlier this year, shut its doors last month and laid off most of its workforce as the economic crisis hit the company.
Now, however, AAI has begun marketing is services. It will provide engineering and manufacturing services to companies and organizations needing expertise in composite design and technology, its website says.
According to Aero-News, the company hopes that it can take in enough outside contract work to weather the down economy, so it may resume development of the A700 aircraft once things improve.
Cirrus Design will reduce production through the end of the year and furlough about 500 employees for about 30 days, the company said.
Employees will be furloughed at its headquarters in Duluth, Minn. and a facility in Grand Forks, N.D. Workers will begin returning to work on January 5 when production on Cirrus’ 2009 models begins, said spokesman William King.
Order cancellations have not been higher than usual, King, said although orders have slowed .
