The Dreamliner's Cost to Boeing

By the time Boeing (BA) puts its first new 787 into the air this fall, after delaying the so-called Dreamliner for more than a year, the company will have racked up extra costs that may top $2 billion. That hit comes with deferred sales worth at least $3.5 billion, and a roughly 40% slide in its stock market value.

Such dismal numbers—and the possibility of even further delay—pressured Boeing at the contract bargaining table since it can ill afford a work disruption. On Aug. 28 the company presented a final offer to machinists and dropped proposals to end some retiree medical benefits and scrap a traditional pension program—terms the International Association of Machinists had said were deal-breakers. The contract offers wage hikes of 5%, 3%, and 3% for each year of the pact. In addition, Boeing will pay $2,500 to each machinist if more than half vote for the contract on Sept. 3.