Boeing and China to compete and cooperate

China ordered its first Boeing airplane in 1972, the same year that US president Richard Nixon made his historic visit to the People's Republic of China. More orders followed after 1979 when a strong relationship between the US and China was established. Today about 60 percent of China's fleet are made up of Boeing jets. Earlier this month Jim McNerney, board chairman, president and CEO of The Boeing Company, took a three-day visit to China. McNerney, 58, oversees the strategic direction of the Chicago-based, $66.4 billion aerospace company. He talked with China Daily reporter Lu Haoting about the development of the B787 project and Boeing's position in China's large airplane project.

Q: The first delivery of the B787 Dreamliner will be delayed until the third quarter of 2009. China ordered a total of 60 planes. When will Chinese airlines receive the first B787? How will they be compensated? And what is the impact of the delay on Boeing?

A: The first delivery will be late next year. For Boeing the delay will have a financial impact - we will be making money later. We also have to work with the airlines to help them manage the delay of the B787, which will involve some costs. Every contract we have with airlines is different. But we usually find a mutually beneficial solution. We are working with the Chinese airlines right now to define that. It could mean a penalty, it could also mean helping with interim airplane capacity.