Shares of Boeing have shed as much as 3% today after Wall Street aired concerns that the firm is unlikely to meet the delivery schedule for its 787 Dreamliner. In the grand equation of business, late deliveries = pushing back cash flow, which is not good for a company. The 787 program has provided a huge boost to BA's order books, with commercial airlines already signing up for 710 of the ginormous commercial aircraft. The first delivery is scheduled for May 2008, and BA hopes to turn out 6 of the new aircraft per month within 6 months of its entry into service, which the company continues to maintain as a target.
This is just the latest in a string of problems for BA's program. Last month, the company warned that a shortage of key parts from subcontractors was hampering assembly of the airliner. In addition, BA lacked enough titanium fasteners to button the aircraft together. BA's drop today totals 1.7% and has been contained by its 20-day moving average.