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Boeing Dreamliner Incidents Raise Safety Concerns

By By Alwyn Scott and James Topham
Source: AWIN First

No passengers or crew were injured in either incident, though firefighters were called out on both occasions.

Boeing shares fell nearly 2.7 percent on Tuesday, following a 2 percent drop on Monday - wiping around $2.8 billion off its market value, or more than a dozen Dreamliners at list price.

While many Wall Street analysts rate Boeing stock a ‘buy’ or ‘outperform’ - the manufacturer has delivered jets faster than the market predicted - some noted the potential for the combination of a fire and a fuel leak to affect public perception of Boeing and the new aircraft.

People working at OG Travel and Eurex, travel agents in Tokyo, said they had not seen any impact on reservations on flights using the 787 aircraft. “I’ve not heard of any cancellations following these incidents,” Eurex staffer Yasuhiro Hirashiki told Reuters.

Carter Leake, an analyst at BB&T Capital Markets in Virginia, downgraded Boeing shares, noting that fires are potentially lethal and electrical issues are tough to solve, though he and others stopped short of calling it a game changer for the Seattle-based manufacturer.

“We’re getting to a tipping point where they go from needing to rectify problems to doing major damage control to the image of the company and the plane,” said Richard Aboulafia, a defense and aerospace analyst with Teal Group, a consulting firm based in Fairfax, Virginia.

“While they delivered a large and unexpected number of 787s last year, it’s possible that they should have instead focused on identifying glitches and flaws, rather than pushing ahead with volume production,” he said.

BATTERY FIRE

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