Boeing May Suffer From Lengthy 787 Investigation | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 05.18.15

Airborne 05.19.15

Airborne 05.20.15

Airborne 05.21.15

Airborne 05.22.15

Airborne Hi-Def On YouTube

Airborne 05.18.15

Airborne 05.19.15

Airborne 05.20.15

Airborne 05.21.15

Airborne 05.22.15

 

Tue, Jan 29, 2013

Boeing May Suffer From Lengthy 787 Investigation

Problems Could Compound If Dreamliner Grounded For Months, Analysts Say

With the NTSB saying it is in the "early stages" of its investigation of a battery fire aboard a JAL Dreamliner, some analysts are looking at the potential impact of the probe on Boeing as a company ... and they are not entirely optimistic.

While investors are not yet shedding the planemakers shares, Carter Leake, an aerospace analyst with BB&T Capital Markets, told Reuters recently that if the investigation drags into six or nine months, airlines may begin cancelling orders for the airliner.

The initial reaction from Wall Street ... Boeing's value has dropped only about 2.5 percent since the problems cropped up ... seemed to indicate that there was confidence that the issue would quickly be identified, and that the fix would be relatively inexpensive. But a lengthy probe could mean production cuts for the Dreamliner, and that raises concerns, according to Moody's Investors Service analyst Russell Solomon. Boeing had planned to increase production to 10 airplanes per month by the end of 2013. Cuts in production would also likely spread through the planemaker's supply chain.

Another concern is that the eventual solution to the problem may add weight to the airplane, decreasing its gains in fuel efficiency.

Boeing still has strong orders for its other airplanes, such as the workhorse 737, and the company gets as much as 40 percent of its revenue from its defense sector. Analysts say that could help mitigate problems stemming from the 787 investigation. But Leake said that it would be enormously expensive for Boeing to slow its production and then bring it back to its current level.

(Image provided by the NTSB)

FMI: www.boeing.com

Advertisement

More News

ANN Special Report: Colorado NIMBYs Defeated... For Now

Vicious Campaign Against Skydiving Operation By Small, But Vocal, Group Loses Court Case News/Analysis by ANN CEO/Editor-In-Chief, Jim Campbell Those of us who work and play in the>[...]

Airborne 05.22.15: Falcon 5X Readies, Avidyne AD, LadiesLoveTaildraggers 2015

Also: Air Power Museum, ANN Could Use A Little Help From Its Friends, GE Honda, Mexican-Registry TBM 900, Legacy 500, BBJ Winglets, Wheels Up Order The new Falcon 5X is getting clo>[...]

Deadline For $30 Million Google Lunar XPRIZE Extended To End Of 2017

Progress Continues To Be Made To Return Humanity To The Moon XPRIZE and Google have officially confirmed a further extension of the $30 million Google Lunar XPRIZE. XPRIZE notes th>[...]

Aero-News: Quote Of The Day (05.25.15)

“It is the Sikorsky Innovations charter to identify the toughest challenges in vertical flight, and to demonstrate solutions to them. Getting an all-new aircraft into flight,>[...]

S-97 Raider Starts Flight Test Program

CoAxial Helo Heralds Development Of Exciting New Rotorcraft We knew it was close... and now it's real. Sikorsky has confirmed the successful first flight of the S-97 RAIDER helicop>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC