Boeing strike affects aircraft deliveries

Work on five planes for Emerates and Qatar airlines has been stopped, threatening delivery times.

Abu Dhabi // A strike at Boeing has reportedly halted production on five aircraft at its Everett, Washington plant destined for Emirates airline and Qatar Airways and worth more than US$1 billion (Dh3.67bn) at list prices. On Saturday, 27,000 members of the International Association of Machinists and Aerospace Workers downed tools after rejecting Boeing's latest contract offer. The last time Boeing workers staged a strike, in 2005, it lasted for four weeks and forced late deliveries on more than two dozen aircraft.

The strike could have particular impact among Gulf airlines, major customers of Boeing's twin-engined, wide-bodied aircraft such as the long-range 777 and the 787 Dreamliner, which is still under development. A shortage of long-range aircraft has been a major constraint for Gulf airlines such as Emirates, Etihad and Qatar Airways as they have sought to establish a growing international presence. Emirates airline is one of the largest customers of the Boeing 777, with 39 of the aircraft currently on order. The strike has halted production of four of those aircraft on the Everett assembly line, according to a report by Flight International magazine. List prices for the 777 range from $200m to $279m depending on the model.

A spokeswoman at Emirates said that it was too early to say how the labour strike may affect its orders, but conceded it was likely the airline had four or more aircraft on the production line at Boeing. "We have been working closely with Boeing on our delivery schedule, and will continue to do so," she said. The delays may also affect the deliveries for Qatar Airways, with one 777 destined for the carrier having been halted on the assembly line. The delays threaten not only its 777 deliveries, but also its order for 30 787 Dreamliners, which are expected to begin arriving in 2012. Due to supply chain problems, the 787 programme is already 15 months behind schedule. Qatar Airways declined to comment yesterday.