Boeing 787 Death Sentence?
Will this be the final strike against them? Cramer talked this morning about the seriousness of the situation not only because of the technical aspect, but because of the graphic images and videos. The emergency slides were extended and passengers were using them to get out.
As I write this, BA is down 3.2%.
Article: http://professional.wsj.com/article/SB100014241278873247349045782443830…
It's a new technology and there appear to be major problems with the lithium ion batteries within the plane. It's the first time they've ever been used, so Boeing is still ironing out the issues.
Things don't look good though - most of these events have been categorized in the 'teething' category, or just issues that happen in the initial stages of an airplane's release. But we'll see if this escalates.
I just don't get how a fuel leak (which happened to the 787 a few days/weeks back) can be considered anything other than pretty major...
From a PR standpoint, it's obviously not good for business when passengers are sliding down the emergency exits of your brand new flagship jet. The 787 is still the most-ordered jet in history, despite the fact that the first delivery was delayed 5 years amidst a host of problems in development. The airlines at the top of the delivery list knew that the first ones off the line would not be perfect, and received prices from Boeing on the jets to reflect that. That said, I'm sure the airlines didn't expect this though. Yes it's a serious problem, but Boeing will work it out.
this is minor, something happens just about every time a new aircraft is launched. a380 had problems (quite serious as well), 777 had problems, both had some airlines grounding fleets for a little bit. if it's not priced in already then people investing in this stuff are stupid.
Another thing: fuel costs for airlines have gone from 25% of expenses to 50% in recent years; the 787 is much more efficient than anything else flying. So its widespread use is inevitable, even if it takes a while for them to iron the kinks out.
Not Ideal, but not a death sentence. Its a plane, not engineering perfection. Yes, the PR is bad. Overall, however, the media has short attention spans. The news cycle will kill this in a week.
These problems all stem from the diverse supply chain, right? At least that's the conclusion I came to.
I think this won't be a big deal in the long run. Will cause short term problems for sure. But Boeing has dealt with these kind of issues before.
Seems like something that could be fixed without scrapping the whole airplane
it Seems like something that could be really fixed
Boeing Launches Dreamliner: All Aboard? (Originally Posted: 09/27/2011)
It took three years and several false starts (supposed to have been completed in 2008, but hey, who’s counting?), but Boeing Co. is at last ready to deliver its 787 Dreamliner. This is great news for a company whose PR has been dominated lately by its messy labor dispute with the National Labor Relations Board regarding its move to South Carolina.
Those of us who believe that cheap energy is gone forever should be pleased to see that it’s 20% more fuel efficient than Boeing’s other models. Its main competitor, Airbus, has even more problems of its own, and oil’s recent price declines bode well for an industry many believe to be negatively correlated with energy price movements.
It’s enough to make you want to go long on Boeing’s stock (NYSE: BA), which closed today at 62.78.
“Not so fast, Bucko,” say the Boeing bears. “I don’t like airlines—lousy unions. They’ll lose the NLRB dispute because it’s totally partisan. There isn’t enough global confidence for big capital purchases like new airplanes. People aren’t traveling as much. Any spike in oil prices, no matter how brief, and they’ll be hurting. And since airplane manufacturing is basically an oligopoly between Boeing and Airbus, competitive forces haven’t had the chance to make the company as great as it could be.”
All of which would seem like a fair argument. But in a market starved of any good news lately, are you bullish? Will the Dreamliner be just what Boeing needs? Or is it too little, too late as these other factors outweigh the benefits?
I haven't studied the stock too closely, but as a company, I like Boeing a lot. I think they're well-positioned on the commercial side with the Dreamliner (as well as the updated 747 cargo plane) and are in a strong position on the defense side considering the potential slowdown in defense spending.
In my opinion they should have decided to completely revamp the 737 instead of going with the stop-gap measure in the 737 MAX.
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