The 787 program continued flight testing during the quarter, as an additional two airplanes joined the two airplanes already in the flight test program.  The Dreamliner completed key flight test milestones such as flutter, stall and ground-effect tests.  On March 28, the static test unit successfully completed the ultimate load test with a fully pressurized cabin.  First delivery is expected in the fourth quarter of 2010.  Total firm orders for the 787 at quarter-end were 866 airplanes from 57 customers.  

The 747-8 program began its flight test program during the quarter, completed initial airworthiness testing, and ended the quarter with three airplanes in the flight test program.  Initial delivery is expected in the fourth quarter of 2010.

Boeing Defense, Space & Security  

Boeing Defense, Space & Security's first-quarter revenue was $7.6 billion on lower volume in Network & Space Systems, partially offset by favorable aircraft delivery mix and higher volume in services.  Operating margins were 8.7 percent on lower margins in military aircraft (Table 5).  

Boeing Military Aircraft (BMA) first-quarter revenue rose 6 percent to $3.2 billion on improved delivery mix and volume on F-18 programs.  Operating margin was 8.2 percent, as strong execution across its programs was offset by lower earnings on C-17 and higher R&D.  During the quarter, BMA delivered 25 aircraft, P8A successfully completed ground vibration testing, and the F/A18 completed India field trials.