The Seattle Post Intelligencer aviation reporter, James Wallace, is now reporting the possibility that Boeing’s new 787 may not make its first flight until February or March of 2009.  Citing the 57 day long strike just settled by Boeing, the program is now supposed to be under review.  At the beginning of the strike, Boeing’s 787 program manager had stated that it would be a day for day slip until first flight. 

However, late February or early March is not a day for day slip and I think this news begins to reveal that there are indeed other problems on finalizing the 787 for its first flight.  The 787 is now more than a year past its original forecast for first flight and had been definitively scheduled for a 4th quarter first flight this year.  Prior to the strike, that was expected to be some time in the middle of November, 2008. 

The delays to the program really should come as no surprise since this aircraft involves far more innovative engineering than probably any other commercial aircraft designed in the past 40 years including the 747 and A380.    Still, another schedule slip after re-defining the program schedule and including plenty of time for more unanticipated problems begins to reveal that this is in fact a program in trouble.   At this point, it is safe to say that Boeing is likely to experience a great deal of trouble getting the production ramped up to meet demand. 

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USA Today’s Today In The Sky Blog is reporting this morning that Delta CEO Richard Anderson and Delta President Ed Bastian have been rewarded handsomely for achieving the Delta / Northwest Merger.  Anderson will receive more than $13 Million in stock awards and Bastian receives just over $5 Million in stock awards.  Both men aren’t fully vested in the compensation until 2011.

While I think it appropriate to compensate two men who obviously worked very hard at making this merger happen, I do think this news comes out at the wrong time and I do think the reward is perhaps premature.  The unions involved in this merger, particularly the IAM, will no doubt bristle at this news despite the fact that Delta / Northwest employees will be receiving stock in the new company.  About 5% for the pilots and 4% for most other employees.  

It would have been better to tie this award to milestones for achieving all of the merger.  First, award some percentage, perhaps 50%, for bringing the two companies under one corporate structure.  Second, set milestones based on the full integration of the company such as pilot seniority lists being fully merged, flight attendant senior lists merged, both sides of the company operating under the same certificate, etc.   There isn’t anything wrong with rewarding accomplishments but I feel this job is only half done at best and there should be some strong incentives to complete the work before granting the prize.

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