This past weekend Boeing unveiled its 787 family (symbolically on 7/8/07), but it isn't flight worthy quite yet, as Boeing plans to being flight testing in September and prove it ready for commercial use in just eight months (the shortest test-flight program in the company's 90-year history) and delivery of the first plane in May 2008. The 787 is Boeing first new jetliner since 1995 and, with 677 already on pre-order, its most successful ever. But with so many orders, new customers shouldn't expect Boeing to work through their backlog of planes until 2015, leaving a couple of years worth of gap for the Airbus A350, planned for introduction in 2013, to presumably pick up where Boeing might leave off.

Likewise, with demand booming, suppliers can't keep up either. A shortage of the specialized bolts that hold the airplane together (a high-priority goal to say the least) has tripped up Boeing's meticulous production planning with concerns about meeting the already higher-than-expected demand. It is believed it could take six months for the bolt suppliers to catch up, but Boeing believes they should have enough on hand to keep production moving, fully aware that, any announcement of a production delay could significantly hurt Boeing's now-lofty stock price.

While Boeing is facing a few minor setbacks, Airbus is continuing to face far harsher problems. First the design of A350 didn't meet expectations, which required a remodel that drastically set back the calendar. Then, just as Airbus was gaining credibility with customers, issues with getting jet engines from General Electric arose because GE has an exclusive agreement with Boeing for the 777, which directly competes with the largest version of the A350.(read more)