logo
  Join        Login             Stock Quote

Boeing (BA) 787 Dreamliner To Be Reviewed For Safety

 January 11, 2013 12:29 PM
 


(By Balachander) Boeing Co. (NYSE: BA) shares are off on Friday as the U.S. Federal Aviation Administration (FAA) said it will review the 787 Dreamliner's recent issues and critical systems.

"While the 787's reliability is on par with the best in class, we have experienced in-service issues in recent months and we are never satisfied while there is room for improvement,"  Boeing said.

The 787, which is mainly built out of composite materials, is touted as the Boeing's future cash cow as each plane costs about $200 million.

However, the 787, is not giving a "Dream Run" for Boeing with several incidents causing negative publicity. This week, one 787 plane caught fire, and another suffered a fuel leak.

[Related -United Technologies Corporation (NYSE:UTX): How Pension Shift Will Drive EPS?]

"We are confident that the aircraft is safe.  But we need to have a complete understanding of what is happening," said FAA Administrator Michael P. Huerta.

The FAA said it reviews 787 in-service events as part of its continued operational safety process.

The regulator will conduct a comprehensive review of the Boeing 787 critical systems, including the design, manufacture and assembly.

"The safety of the traveling public is our top priority," U.S. Transportation Secretary Ray LaHood said. "This review will help us look at the root causes and do everything we can to safeguard against similar events in the future."

Boeing said it remains "fully confident" in the airplane's design and production system.

[Related -The Boeing Company (BA): Why You Should Look At Boeing's Defense Business?]

Regulators expects the review to begin in Seattle, but may expand to other locations over the course of several months.

Boeing is one of two large commercial aircraft manufacturers globally, and one of the largest defense contractors in the world. iStock believes that the 787 program has begun to find its footing, and successful execution could drive Boeing's fundamentals and stock.

The company reported higher than expected 787 deliveries for the fourth quarter at 23, including 11 in December, totaling 46 in 2012. The strong deliveries would help the company reducing cash burn.

BA shares retreated 2.40 percent to trade at $75.22. Over the past year, the stock has been trading between $66.82 and $78.02.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.