Delayed jets set to fly, pledge Boeing and Airbus

By Martina Fuchs and Tim Hepher

DUBAI (Reuters) - Boeing (BA.N) and Airbus (EAD.PA), hurt by delays in new models, are vowing to get the overdue 787 Dreamliner and A400M military transport plane into the air by year end.

The maiden flights would offer a welcome boost for the world's top two planemakers, which are grappling with sluggish demand in the wake of the financial crisis, as seen at this week's Dubai air show.

"I am confident that we will have a first flight by the end of the year," Airbus Chief Executive Tom Enders told Reuters Television.

Airbus parent EADS reported a 77 percent drop in third-quarter core earnings on Monday, hit by the delay of the A400M, softer airliner demand and the adverse effect of a weak dollar.

Enders also said production on the A380 superjumbo was still slower than hoped for.

"There is no secret about it. We are still having production hiccups. Production is not where we want to it to be," he said.

The Dubai air show showcases a Gulf region that has helped offset slowdowns in North America and Europe and led demand for planes including the A380.

"The Middle East market encompasses all aircraft segments and is a barometer for the rest of the world," said John Leahy, Airbus' chief operating officer. "The recovery begins here."