Talks fail over machinists strike at Boeing, putting launch at risk

Boeing has failed to reach agreement with its striking machinists who threaten to delay the launch date of the company's 787 Dreamliner, its answer to arch-rival Airbus' A380.

The strike has gone on for five weeks, costing the company more than $100million a day in lost revenue, analysts say.

Boeing 787 Dreamliner airplane

Strikes look set to delay the production of the Boeing 787 Dreamliner airplane

The Dreamliner is already at least 15 months behind schedule and was supposed to fly for the first time next month, but the company has said that will have to be postponed.

'We worked very hard to find solutions, and we are extremely disappointed that the talks broke off,' said Doug Kight, Boeing's lead negotiator.

Machinists are striking for a better pay deal as well as clawing back some work that is being farmed out to contractors.

Boeing says outsourcing is an integral part of its business strategy and any improvements to wages and benefits must be sustainable as competition increases.