"The Boeing Co. delayed its 787 jetliner program again Tuesday, pushing back its expected debut in commercial service to the third quarter of 2009 as it continues to grapple with problems involving its supply chain and the need to redo work done by contractors."

These new delays push the 787's schedule back approximately another six months, more than a year behind its original schedule.

Unfortunately for Boeing, this undermines their credibility and is going to irritate the more than 50 airlines that have placed about 900 orders for the plane. I am sure these buyers are going to seek compensation for the delays.

"Over the past few months, we have taken strong actions to confront and overcome start-up issues on the program, and we have made solid progress," said Scott Carson, president and CEO of Boeing's Seattle-based commercial airplanes unit. "Nevertheless, the traveled work situation and some unanticipated rework have prevented us from hitting the milestones we laid out in January."

The company said research and development costs will likely increase because of the latest delay but it expects no change to 2008 earnings guidance. It said it will disclose more financial details when it reports first-quarter earnings on April 23.

It looks, however, that analysts and customers had been expecting the latest delays as Boeing shares rose $3.01, or 4%, to $78.03 in morning trading.