Lengthy Dreamliner 787 probe, fixing problem, may cost Boeing dear
Boeing does make four other kinds of jets, including the best-selling 737, and the company earns 40 percent of its revenue from its defense arm.
Still, the world's biggest planemaker is producing 787s, but not delivering any, a situation that could stretch the company financially and test investors' faith.
"One of our big concerns is that this investigation continues to drag on, and it looks like it may be more than just the battery overheating itself," said Russell Solomon, an analyst at Moody's Investors Service. "You start getting into three, six months out and it has a bigger impact and my guess is that they (Boeing) would have to potentially cut the production rate."
BREAKING DOWN THE COST
Besides the actual cost of fixing the 50 787s in service, plus another 50 or so in production or waiting for delivery, Boeing will have to compensate carriers unable to use 787s as planned and pay penalties for late deliveries, most likely in the form of discounts on future purchases.
It also is not clear whether any fix - particularly if the probes lead to the identification of a major design fault - would also be costly.
At the same time, it will be starved of the cash it was expecting for delivering 787s it is still producing at the current rate of five per month, which could add up to
Be the first to comment.