Dreamliner Delays: Outsourcing Goes Too Far

AOL FINANCE:  Earlier this week, Boeing announced yet another — now the seventh — delay in the delivery schedule for its first 787 Dreamliner, pushing its initial delivery back at least three years later than originally planned. These delays raise important questions for a management practice that has been around for decades: outsourcing.

Specifically, did Boeing outsource too much of the Dreamliner’s components to other companies in other countries? Will the 787’s outsourcing problems persist? And what might this mean for airlines, passengers and investors in Boeing stock? The short answers are: yes, probably, and it’s too early to tell.

The latest announced delay came as no surprise after a 787 test flight in Laredo, Texas, suffered an electrical fire in November 2010. Boeing now plans to deliver its first aircraft in the third quarter of 2011 — six months later than the previous expected date. The airline that’s supposed to get that first 787, Japan’s ANA, says it’s glad to learn of the new schedule and is adjusting by keeping its old aircraft going longer than planned…  (more)

Share