FAA Places Tighter Restrictions on Boeing (BA) 787 Amid Battery Issue
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Price: $214.69 -1.18%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.4%
EPS Growth %: +77.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.4%
EPS Growth %: +77.4%
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Boeing (NYSE: BA) and the Federal Aviation Administration (FAA) appear to be as far away as ever on getting the 787 Dreamliner back to its intended service schedule.
Facts:
Reuters reports that the FAA is planning to shorted approved flying time when it approves a new lithium-ion battery system submitted by the company later on this month. The approval will come as caution until more flights are conducted and the agency becomes more comfortable with the solution.
The design of Boeing's 787 is for better fuel-efficiency on long-distance flights that don't require a higher-capacity like that of the 777 aircraft.
Estimates have the grounding of Boeing's 787 Dreamliner already costing the company $450 million in income and compensation to airlines affected by the event.
No speculation has been made about how long the restriction would be made.
Shares of Boeing are down about 0.6 percent early.
Facts:
- The FAA wants the Boeing 787 to travel no more than two hours away from the nearest landing strip;
- That number is lower than three hours given when the 787 was grounded in January;
- Boeing has been aiming for allowances of 5.5 hours or more on the 787 to conduct intercontinental flights.
Reuters reports that the FAA is planning to shorted approved flying time when it approves a new lithium-ion battery system submitted by the company later on this month. The approval will come as caution until more flights are conducted and the agency becomes more comfortable with the solution.
The design of Boeing's 787 is for better fuel-efficiency on long-distance flights that don't require a higher-capacity like that of the 777 aircraft.
Estimates have the grounding of Boeing's 787 Dreamliner already costing the company $450 million in income and compensation to airlines affected by the event.
No speculation has been made about how long the restriction would be made.
Shares of Boeing are down about 0.6 percent early.
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