New York, Sep 1 (DPA) The Boeing executive in charge of the aerospace giant's much delayed 787 Dreamliner project will step down, the company has said.

Bill Carson, chief executive of Boeing Commercial Airplanes, is to be replaced by Jim Albaugh, the head of the company's military unit, Tuesday.

Last week Boeing again delayed delivery of the Dreamliner by nearly a year to late 2010. The project is nearly three years behind schedule, mostly because of problems with suppliers.

Albaugh is charged with making sure the Dreamliner can make a test flight as planned by the end of the year. He has led the military unit since 2002 and is to be replaced in that position by Dennis Muilenburg.

Boeing had received 850 orders for the highly anticipated craft and is now facing billions in losses due to the delays.