HONG KONG -(Dow Jones)- China Southern Airlines Co. (ZNH) said Tuesday the delivery of its first Boeing Co. (BA) 787 Dreamliner would likely be delayed by at least another seven months, but the Guangzhou-based carrier remains committed to its orders for the U.S. aircraft maker's newest passenger aircraft. "We are very disappointed with the continued delays" in Boeing 787 deliveries, China Southern Chief Financial Officer Xu Jiebo told Dow Jones Newswires, adding that compensation for the latest delays is "necessary," though he declined to elaborate further. Xu said Boeing recently informed the airline that delivery of the first of 10 787s it ordered will be delayed again to July next year from the end of this year. The comments from China Southern, the country's biggest airline by fleet size, come after rival China Eastern Airlines Corp. (0670.HK) said late Monday it was cancelling its order for 24 Boeing 787s and instead buying 45 smaller 737 models as a result of continued delivery delays. Despite the continued delays, Xu said the carrier is committed to its plans to buy the new fuel-efficient airliner, which the airline hopes can significantly reduce fuel costs. The airline was originally scheduled to receive its first 787 in 2008, but constant production and design delays at Boeing have pushed back the launch of the new aircraft. Japan's All Nippon Airways Co.--the launch customer for the 787--will inaugurate services using the aircraft next week. -By Joanne Chiu, Dow Jones Newswires; 852-2802-7002; joanne.chiu@dowjones.com
