KUALA LUMPUR, Aug 28 (Bernama) -- Boeing announced that the first flight of the 787 Dreamliner is expected by year-end and first delivery in the fourth quarter of 2010.

In a statement, the aircraft maker said the new schedule reflected the need to reinforce an area within the side-of-body section of the aircraft, along with the addition of several weeks of schedule margin to reduce flight test and certification risk.

The company is projecting to achieve a production rate of 10 airplanes per month in late 2013.

"This new schedule provides us the time needed to complete the remaining work necessary to put the 787's game-changing capability in the hands of our customers," said Boeing Chairman, President and Chief Executive Officer Jim McNerney in a statement.

He said the design details and implementation plan were nearly complete, and the team was preparing airplanes for modification and testing.

Based on the revised schedule and other assumption updates, the company determined that the 787 programme is not in a forward-loss position.

However, separate from the updated programme profitability assessment, the company has concluded that the initial flight-test airplanes have no commercial market value beyond the development effort due to the inordinate amount of re-work and unique and extensive modifications made to those aircraft.

Therefore, it said costs previously recorded for the first three flight-test airplanes would be re-classified from programme inventory to research and development expense, resulting in an estimated non-cash charge of US$2.5 billion pre-tax, or US$2.21 per share, against third-quarter results.

This charge would have no impact on the company's cash outlook going forward, Boeing said.

The 787 team working the side-of-body reinforcement has completed initial testing and is finalizing design details of new fittings that are expected to ensure full structural integrity of the joint.

The first 787 test airplane and static test unit have been prepared for the new fittings with installation expected to begin within the next few weeks.

-- BERNAMA