Boeing's 787 is on track

FARNBOROUGH (Reuters) - Boeing's troubled 787 Dreamliner is on track for a first test flight toward the end of this year, but tough financial conditions could hold back orders for its range of commercial planes.

The 787, at least 14 months behind its original schedule, should fly in the fourth quarter and be delivered from the third quarter of 2009, Scott Carson, chief executive of Boeing's commercial planes unit, said at the Farnborough air show.

That repeated Boeing's last timetable, issued in April when it announced the third major delay on the program due to persistent production problems.

Despite airlines struggling in the face of record oil prices, Boeing has seen no cancellations and only a "handful" of deferrals of orders from existing customers, Carson said on Monday.

He did acknowledge the credit crunch as a "potential constraint" on future orders, and that Boeing's credit unit was prepared for more of an active role in financing customer purchases.

He declined to comment on the prospect of large-scale cancellations from airlines next year, which some in the industry are predicting.

(Editing by Dan Lalor)