MercoPress. South Atlantic News Agency

Dreamliner deliveries entangled within red tape and FAA inspections

Boeing faces cancelations of orders worth billions of dollars if the aircraft are not delivered on time

Boeing deliveries of the 787 model, known as the “Dreamliner” have been put on hold for a while now and are not expected to resume until at least the end of October, according to The Wall Street Journal.

As per the newspaper report, the aircraft manufacturer has not been able to persuade the US Federal Aviation Administration (FAA) to approve its proposal to inspect these aircraft, after some security experts from the company representing the agency did not support the plan.

Last May, Boeing stopped deliveries to provide the FAA with additional information on the analysis and documentation related to the verification work on the undelivered 787s.

Boeing's failing the FAA's last inspection has added to the company's financial difficulties, as well as endangered several orders for the 787 which may now be cancelled without penalty.

The aircraft manufacturer had proposed the FAA to submit for inspection 3 of the 106 Dreamliners already finished and awaiting authorization to be delivered, as a part of a program devised by Boeing for the agency to validate spot reviews instead of having to completely disassemble armed aircraft.

The WSJ said the FAA believed this review would be “insufficient” and “unrepresentative.”

Boeing has committed to expanding the sample for the next submission for review, which is not expected before the end of October. This review is key for the manufacturer since a new delay in deliveries can represent a huge economic loss.

The 100 aircraft represent, at market values, some US $ 12.5 billion and each delay put contracts at risk. A common clause in orders stipulates that if the factory delays delivery of an aircraft for more than 12 months for reasons beyond the control of the operator, the operator can cancel the order without penalties.

Cirium analysts indicate that some 54 aircraft will meet that deadline on October 1, which implies a potential loss of close to 6 billion dollars. A Boeing spokesperson told the WSJ that the company was committed to working in full transparency with regulators through a rigorous process that has already involved hundreds of hours of meetings and breakout sessions.

“Boeing wants and expects our colleagues to speak freely, ask questions and present different perspectives on very complex and technical issues,” the spokesman said.

The FAA, for its part, said the agency will not approve Boeing's inspections “until our safety experts are satisfied.”