Chinese airlines are currently in talks with Boeing to delay the delivery of the new 787 Dreamliner, a senior Boeing executive said on Monday, as carriers continue to implement cost-cutting measures amidst the downturn in air travel.

The downturn in the airline industry has had a dramatic effect on the Chinese airline industry, with the top three airlines recording a combined $4 billion loss in 2008, forcing them to cut back on expenditures.

Meanwhile, aircraft manufacturer Boeing has been struggling with a range of problems that have dogged the launch of the Dreamliner, as well as a two-month strike at its Seattle plant last year.

David Wang, president of Boeing’s China operations said that based on their delays, aircraft could be ready by the end of the year, however the airlines are not in a position to receive the aircraft.

China Southern Airlines has ordered nearly 60 Boeing 787 jets, saying that the Dreamliner is expected to make its first flight later this year with the first delivery of the jet to take place at the end of 2010.

Meanwhile the Chinese government has offered handouts to aid the airlines to fight the downturn in global travel and encouraged them to delay or scrap aircraft orders.