Qantas may seek Dreamliner payout

BA is one Boeing customer who may be affected by the delays

Australian airline Qantas has said it will seek compensation from Boeing after a second delay in the delivery of the planemaker's 787 Dreamliner jet.

Qantas has ordered 65 of the fuel-efficient aircraft as part of plans to expand its network of flights in Australia and Asia.

It said that the further delays to the delivery announced earlier this week would hurt its growth plans.

Another Dreamliner customer Japan's All Nippon Airways will also be affected.

Production problems mean Boeing will not start deliveries of the Dreamliner until early 2009, with Japan's All Nippon Airways due to be the first recipient.

We will be discussing the issue of liquidated damages with Boeing in the coming weeks Geoff Dixon, Qantas chief executive

Qantas said it would not get the first batch of its planes before next May, although a delivery date was yet to be confirmed.

The firm's chief executive Geoff Dixon said the delays would have a short-term effect on the group's international expansion but would not dent the group's expected earnings.

He said Qantas could claim damages in certain circumstances under the terms of its contract with Boeing.

"We will be discussing the issue of liquidated damages with Boeing in the coming weeks," Mr Dixon added.

Further problems

Other Boeing customers could also seek compensation for the delays - the second time the US firm has put back its planned production schedule because of manufacturing problems.

The new delay, estimated at three-months, puts it 10 months behind schedule.

All Nippon Airways, which has 50 planes on order, said it would examine the effects the delays will have on its business before making a decision about whether to claim compensation.

Other customers that could be affected include British Airways, Virgin Atlantic and First Choice, as well as a number of Chinese airlines.

Analysts have compared the problems to those suffered by Boeing's rival European planemaker Airbus, which was hit by costly production problems to its flagship superjumbo A380 and had to pay huge compensation costs.