Boeing's Dreamliner still grounded

Risk Management, March, 2008 by Rebecca Urbelis

Commercial aircraft that rely heavily upon automated flight decks and other technological flight aids have been the industry standard since the late 1980s, but a new twist on technological safety has put hackers in the spotlight--even at 36,000 feet.

These new cyber-terrorism fears follow Boeing's recent development setbacks in its new commercial airliner project, the Dreamliner. The jet was originally denied certification by the Federal Aviation Association (FAA) due to dangerously unregulated computer systems, as FAA officials warned that the in-flight internet system provided to passengers "allows new kinds of passenger connectivity to previously isolated data networks connected for systems that perform functions required to the safe operation of the airplane." In leaving the pilot's computers vulnerable to attack through the Dreamliner's entertainment system, a hacker with a laptop and the right intelligence could theoretically hijack the system from his or her seat.

Boeing's latest airplane woes represent the tail end of a struggle with European competitor Airbus in a race to supply airlines with more efficient and environmentally friendly planes. Following September 11 and the subsequent global airline market shakeup, Boeing began work on a new jetliner: one which would use less fuel and feature a body made out of lighter and more durable composite materials. Boeing formally announced plans to build this 787 "Dreamliner" in 2004 and quickly began placing orders, outselling Airbus, which countered in 2006 with its redesigned A350-XWB, boasting improved fuel efficiency and range. Airbus has continued to lag behind Boeing in volume of orders, but can take solace in Boeing's difficulty meeting projected deadlines.

Early this year, Boeing faced another setback related to supply-chain problems rooted in new assembly protocols. Boeing models are typically built and assembled on site, but in an attempt to increase efficiency and rush to market, the Dreamliner production plan relied on largescale preassembly by independent suppliers. These preassembled pieces would be collected and then shipped to the company's Seattle plant for final assembly. Problems arose, however, as suppliers experienced complications such as parts shortages, and more recently, with the assembly process itself.

Multiple delays may leave Boeing with credibility problems. With more than 50 customers that have ordered over 800 planes--valued at a total of $100 billion at list prices--the Dreamliner's delay may frustrate expansion plans for clients in burgeoning Asian markets.

Currently, the 787's maiden flight is scheduled for mid-2008 with aircraft deliveries announced for early 2009. But other added pressures from the FAA may also keep the ill-fated Dreamliner grounded longer. Boeing is now required to fulfill "special conditions" before the Dreamliner can become FAA certified. Boeing must be able to prove that its passenger entertainment systems are prevented from actively accessing data networks connected to the function of the plane. These conditions are the precursors for what is quickly becoming a FAA precedent regarding internet capabilities.