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 03.23.15

Airborne 03.24.15

Airborne 03.25.15

Airborne 03.26.15

Airborne 03.20.15

Airborne Hi-Def On YouTube

Airborne 03.23.15

Airborne 03.24.15

Airborne 03.25.15

Airborne 03.26.15

Airborne 03.20.15

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

Germanwings Pilot Apparently Locked Out Of Cockpit

CVR Indicates Pounding On Cockpit Door, Shouting For It To Be Opened Data retrieved from the Cockpit Voice Recorder (CVR) aboard the Germanwings Airbus A320 that went down in the F>[...]

Airborne 03.25.15: HR476 Opposed, AEA2015 LIVE Schedule, Airbus' 9000th A/C

Also: Nanchang CJ-6A, USAF T-X Program, UK AAIB Withholds Info, Aussie Aero-Politics, GPS Errors Found, ATC Reform House Bill HR 476 will eliminate G.I. training benefits for those>[...]

Airborne 03.26.15: Airbus Crash 'Pilot Induced', B-29 Rollout, CC Rockets Ready

Also: ALPA v UAVs, Aero-Community Update: XPrize, FAA Streamlines UAS COAs, Airport Infrastructure, ATC Reform, New SpaceX Rocket Data retrieved from the Cockpit Voice Recorder (CV>[...]

ANN's Daily Aero-Linx (03.27.15)

Fun Places To Fly It may still be cold and snowy where you are, but spring is here and the flying weather will soon start to get better everywhere.>[...]

ANN's Daily Aero-Term (03.27.15): Fly-By Waypoint

A waypoint designed to permit early turns, thus allowing the aircraft to roll out onto the center of the desired track to the next waypoint.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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