Boeing insists Dreamliner will fly soon

Boeing Co. reaffirmed its plans to fly the 787 Dreamliner for the first time in the second quarter and deliver the plane in the first three months of 2010.

The first test plane "is essentially factory complete now" and will be painted soon, Scott Carson, the head of the commercial unit, said in remarks Webcast from a JPMorgan Chase & Co. conference today. "We can see the time when the production line will operate as we had planned."

Boeing is slashing about 10,000 jobs, or 6 percent of its workforce, and has said it could cut production by about 10 percent next year if more orders are deferred or canceled because of the global recession. The Chicago-based planemaker, which has a record backlog for 3,633 planes valued at about $279 billion, has won just 22 orders this year, less than an eighth of the total by this time last year.

"We believe every one of the airplanes scheduled for this year will be delivered, and the draw on us for financing will be relatively minimal," Carson said. "So 2009 looks OK; 2010 is a little bit more of a question depending on global economic conditions."

Carson backed his delivery forecast from January for 480 to 485 commercial planes this year. Demand is "slowing significantly" for planes to be added to fleets to fuel route expansion, though airlines are still anxious for new, more fuel- efficient models to replace older jets, he said.

The Dreamliner is about two years behind schedule because of parts shortages and defects, redesign work and problems with the suppliers who are building most of the plane and shipping sections to be joined at Boeing's plant in Everett, Washington.

"We're humbled by our mistakes but optimistic about the products we're bringing into the marketplace," Carson told investors.