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Spokane, Washington  Est. May 19, 1883

Boeing Will Delay Delivery Of Some 767s

Bloomberg News

Boeing Co. will delay the delivery of four 767 jetliners to AMR Corp.’s American Airlines unit by one month, AMR Chairman Robert Crandall said.

American was scheduled to receive one of the jets a month beginning in March. Assembly-line bottlenecks forced the Seattle-based jet maker to push the start of the deliveries back to April.

“We have had an indication from Boeing that there will be a very modest slip,” Crandall said. “It will not adversely affect our 1998 performance.”

AMR ordered 103 jets costing more than $6 billion from Boeing late last year. The 767s were among the first scheduled deliveries from the order.

AMR won’t receive any penalty payments, Crandall said.

Boeing’s delivery problems have grown as the company tries to increase production and efficiency to meet record demand. The delays now affect more than 10 customers, and the jet maker has said it may face penalties for late deliveries.

Last week, UAL Corp. said 18 aircraft scheduled for delivery to its United Airlines unit in the third quarter of 1999 will be one to two months late.

Boeing has said it will take $2.6 billion in pretax charges through the end of next year for late-delivery penalties and parts and labor shortages.

Crandall’s comments on the Boeing order came after a news conference about AMR’s marketing alliance with China Airlines.

The agreement, first announced 18 months ago, will enable American to ticket passengers on China Airlines’ flights from the western U.S. to Taiwan.