China Southern: See Further Delays In First Boeing 787 Dreamliner Delivery
18 October 2011 - 3:21PM
Dow Jones News
China Southern Airlines Co. (ZNH) said Tuesday the delivery of
its first Boeing Co. (BA) 787 Dreamliner would likely be delayed by
at least another seven months, but the Guangzhou-based carrier
remains committed to its orders for the U.S. aircraft maker's
newest passenger aircraft.
"We are very disappointed with the continued delays" in Boeing
787 deliveries, China Southern Chief Financial Officer Xu Jiebo
told Dow Jones Newswires, adding that compensation for the latest
delays is "necessary," though he declined to elaborate further.
Xu said Boeing recently informed the airline that delivery of
the first of 10 787s it ordered will be delayed again to July next
year from the end of this year.
The comments from China Southern, the country's biggest airline
by fleet size, come after rival China Eastern Airlines Corp.
(0670.HK) said late Monday it was cancelling its order for 24
Boeing 787s and instead buying 45 smaller 737 models as a result of
continued delivery delays.
Despite the continued delays, Xu said the carrier is committed
to its plans to buy the new fuel-efficient airliner, which the
airline hopes can significantly reduce fuel costs. The airline was
originally scheduled to receive its first 787 in 2008, but constant
production and design delays at Boeing have pushed back the launch
of the new aircraft.
Japan's All Nippon Airways Co.--the launch customer for the
787--will inaugurate services using the aircraft next week.
-By Joanne Chiu, Dow Jones Newswires; 852-2802-7002;
joanne.chiu@dowjones.com
China Southern Airlines (NYSE:ZNH)
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