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/NBAA2014 10.24.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.24.14 **
** Airborne/NBAA2014 10.22.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.22.14 **
** Airborne/NBAA2014 10.21.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.21.14 **
** Airborne/NBAA2014 10.20.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.20.14 **

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

Airborne 10.24.14: AML's Innovations, NASA Preps For Mars, LightHawk Saves

Also: AW609 Pilots Honored, Airbus' VIP Cabin, FreeFlight's FTX-200, Quicksilver S-LSA Milestone During our visit this week to NBAA 2014, Jim Campbell had a chance to talk with Mar>[...]

Airborne at NBAA-10.22.14: Legacy 500, Universal InSight, BendixKing AeroWave

Also: GE Honda, Sagem's Active SideStick, Syberjet Update, Techno Aerospace Knows How to Party The FAA handed over certification papers for Embraer's Legacy 500 executive jet durin>[...]

Airborne 10.24.14: AML's Innovations, NASA Preps For Mars, LightHawk Saves

Also: AW609 Pilots Honored, Airbus' VIP Cabin, FreeFlight's FTX-200, Quicksilver S-LSA Milestone During our visit this week to NBAA 2014, Jim Campbell had a chance to talk with Mar>[...]

AD: Pacific Aerospace Limited Airplanes

AD NUMBER: 2014-21-02 PRODUCT: Pacific Aerospace Limited Model FU24-954 and FU24A-954 airplanes.>[...]

ANN's Daily Aero-Linx (10.25.14)

The Canard Zone An online forum by and for owners and builders of canard aircraft.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC