Boeing Scraps Wireless IFE for 787

[Matt Molnar]

WSJ:

Boeing's 'Dreamliner' Hits New Bump
Move to Scrap Wireless System
For In-Flight Entertainment
Heightens Production Scrutiny

By J. LYNN LUNSFORD
January 24, 2007 10:17 p.m.; Page A13

Boeing Co. is abandoning plans to use a wireless network to deliver in-flight entertainment on its 787 "Dreamliner" after encountering problems in developing the technology, a move that comes as the development schedule for the twin-aisle airplane is coming under greater scrutiny.

Monday, Boeing's stock tumbled 3.4% after one aerospace analyst suggested Boeing would be at least three months late delivering what has become the biggest-selling new plane in the company's history, with 448 preproduction orders. Boeing officials have acknowledged "challenges" with the schedule, but they insist the jet maker is on track to deliver the first of the $160 million airplanes as promised in May 2008.

The change is likely to stir speculation about other issues that may be lurking in the 787's development. With less than eight months until the scheduled first flight, Boeing has poured an extra $635 million into additional research and development meant to address schedule problems.

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[nwafan20]

It was expected. Issues with interference and development of the systems.