Flag Counter

Wednesday, January 9, 2013

BB&T cuts Boeing, says 787 fire too serious to ignore

A string of electrical problems, including a fire, in Boeing Co's 787 Dreamliner jets are too critical to overlook and any further problem with the aircraft could prompt regulators to take severe action, said analysts at BB&T Capital Markets.

BB&T analyst Carter Leake lowered his rating on the stock to "hold" from "buy," saying it was prudent for investors to stay on the sidelines until the electrical problems were sorted out.

Boeing shares fell 2 percent to $74.90 in premarket trade on Tuesday.

A fire broke out on an empty 787 jet in Boston on Monday, putting safety concerns about the new, carbon-composite jet back in the spotlight.

This comes soon after 787s operated by United Airlines and Qatar Airways suffered problems with power generators in December.

"The FAA is not likely to take any immediate action," said BB&T analyst Leake.

"But the 787 has run out of mulligans, and even though this may be an unrelated battery issue, any new electrical event could have the FAA take more drastic measures to include the grounding of the fleet."

The Dreamliner, which is Boeing's first jet to be made of carbon composites rather than aluminum, relies heavily on electrical power to drive onboard systems that in other jet models are run by air pressure generated by the engines.

These electrical systems offer significant savings in weight, but the power required to drive them is almost four times more than that needed for the much larger 777, Leake said.

"Recent events suggest that something is amiss with how all of these new power hungry components are interacting once installed in the aircraft," Leake said.


No comments:

Post a Comment