Boeing names new head for delayed 787 program
CHICAGO (Reuters) - Boeing Co (BA.N) on Tuesday named Pat Shanahan to replace Mike Bair as head of the 787 Dreamliner program, which has been delayed by at least six months.
The delay was an embarrassing setback for Boeing, which had insisted for months that it would meet its delivery timetable despite production problems.
Shanahan's appointment as vice president and general manager of the 787 program was effective immediately. Bair, meanwhile, will become vice president of business strategy and marketing for commercial airplanes.
Boeing, which vies with Airbus (EAD.PA) as the world's biggest plane maker, has delayed the first deliveries of the 787 as it struggles to assemble the new carbon-composite plane.
"It would appear as though Mr. Bair is paying for the six-seven month delay anticipated in the aircraft's first delivery," Bank of America analyst Robert Stallard said in a research note.
"While investors may be glad to see senior management taking decisive action on the 787 after the recent questions posed on credibility, a significant body of knowledge will depart with Mike Bair, and it will take time for Mr. Shanahan to get up to speed on the program," Stallard said.
Shares of Boeing were up 49 cents at $95.32 on the New York Stock Exchange in afternoon trade.
Chicago-based Boeing said last week that 787 deliveries are now slated to begin in late November or December 2008.
The carbon-composite plane is of great importance for Boeing. It has taken orders for more than 700 of the 787 planes from 48 airlines and leasing companies. The orders are worth more than $100 billion at list prices.
Shanahan "knows how to deliver results, understands our customers and their requirements and has the leadership skills to get the job done," said Scott Carson, chief executive of Boeing Commercial Airplanes.
Shanahan was vice president of missile defense systems at Boeing Integrated Defense Systems. He had previously led both the 757 and 767-400ER programs at Boeing Commercial Airplanes.
(Reporting by Kyle Peterson and Chris Reiter, additional reporting by Himani Sarkar, editing by Jeffrey Benkoe)
