Boeing Dreamliner 787-10 assembly in Japan ahead of schedule

Construction of Boeing’s latest Dreamliner aircraft has begun two weeks ahead of schedule.

Kawasaki Heavy Industries begins construction on Boeing's Dreamliner 787-10 in its factory in Nagoya, Japan.

Construction of Boeing’s latest Dreamliner aircraft has begun two weeks ahead of schedule as the plane maker seeks to consolidate parts of its commercial jet unit to reduce its overhead costs.

Kawasaki Heavy Industries this week began the installation of circular frames into a fuselage section on the 787-10 in its factory in Nagoya, Japan.

More than 150 orders have been placed for the 787-10 which has been designed as a longer version of the 787-9 Dreamliner.

Commercial airlines have been flying the 787-9 since 2014 and Qantas will start using them from next year. Ninety-five per cent of the build of the 787-10 and 787-9 are identical, allowing the plane maker to reduce com­plexity and costs associated with the design.

The 787-10 — which boasts 25 per cent better fuel efficiency and reduced carbon emissions — will undergo final assembly at Boeing South Carolina in North Charleston and first deliveries of the aircraft will take place in 2018.

“Beginning major assembly early underscores the commitment, discipline and performance of the entire Boeing and partner team worldwide,” said Ken ­Sanger, vice-president of 787 development at Boeing com­m­ercial. “We are taking all the right steps to ensure we integrate the 787-10 into the production system smoothly,” he said.

The construction of the 787-10 comes not long after Boeing triggered a restructure of its business that has seen it do away with layers of middle management and simplify its operations. The restructure comes amid continued pressure from European rival Airbus, which over the past three decades has chipped away at Boeing’s market share and forced jet prices down.

Boeing in February announced a wide-ranging plan to cut costs and has sought to eliminate layers of executive management “to lean out our structure from the top down while continuing to perform on our development programs and keep our delivery commitments to customers”, Boeing commercial chief executive Ray Conner wrote in a note to employees.

Some of the cost cuts have been made to offset the high development and production costs of the 787 Dreamliner as the plane maker continues on course to recover nearly $US30 billion in deferred expenses from building its first several hundred aircraft.

The restructures also take Boeing’s two oldest and lowest volume twin-aisle jets, the 767 and 747 jumbo jet, and places them under the oversight of Elizabeth Lund, the company’s vice-president and general manager of the long-range 777 program.

The 747 and 767 are almost entirely produced today as freighter aircraft and as the US Air Force’s new aerial refuelling tankers.

Boeing in January announced plans to cut production of the ageing jumbo jet to just six annually starting in September.