Boeing (BA) 787 Traditional Battery Fix Contemplated, Grounding Costs $300M/Month

Shares of Boeing Company (NYSE: BA) entered a holding pattern this month after a fire prompted FAA officials to ground the new 787. Since then many have speculated about the cause of the problem, with special attention being paid to the aircraft's lithium-ion battery, but so far investigators are left scratching their heads.

According to a report by Deutsche Bank, Boeing may already be contemplating ways to modify the 787 to use traditional batteries. They are also very likely contemplating traditional batteries which can be used if the root cause of the problem is not found.

According to industry expert John Hansman, the footprint of a traditional battery could be accommodated in the avionics bays or via split system, and weight would be manageable, noted Deutsche Bank. In a worst case scenario, it could take Boeing 3 to 6 months to develop a traditional battery solution for use in the 787. Meanwhile, the cost pf grounding the 787 is estimated at $300 million per month in airline penalties plus R&D and related costs.

Deutsche Bank has a Buy rating on Boeing with a price target of $85.00.

For an analyst ratings summary and ratings history on Boeing (NYSE: BA) click here. For more ratings news on Boeing click here.

Shares of Boeing closed at $74.00 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Deutsche Bank Downgrades Workday (WDAY) to Hold
• Deutsche Bank Upgrades Huizhou Desay Sv Automotive Co (002920:CH) to Hold
• Guggenheim Reiterates Buy Rating on EyePoint Inc. (EYPT)