Boeing Dreamliner Grounded in Japan
Japanese airlines All Nippon Airways (ANA) grounded 5 of its 11 787 Dreamliners from Boeing Co. (NYSE: BA) following tests that indicate a risk of corrosion in the plane’s Rolls-Royce engines. Three planes have been repaired and are flying again…
The Dreamliner, which carries a list price of $193.5 million, has suffered several problems since the first planes were shipped to ANA last year. A problem with the plane’s landing gear came to light shortly after ANA received the first planes last October and a delamination of the Dreamliners carbon-fiber fuselage was discovered early this year.
The engine problem in ANA’s plane was due to a faulty gearbox supplied by a division of United Technologies Inc. (NYSE: UTX). Engine-maker Rolls-Royce has also faced some problems with the engines it supplies to Airbus for its A380 aircraft.
Shares of Boeing are down about -1.4% at $72.84 in mid-afternoon today, in a 52-week range of $56.01-$77.83. UTX shares are also down about -1.5% at $73.06 in a 52-week range of $66.87-$87.87.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
