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Nightmare threatens Boeing's Dreamliner

Boeing's 787 jet is suffering glitches, enough to put our 'buy' recommendation on hold
January 16, 2013

Boeing's (US:BA) new 787 Dreamliner is making unwelcome headlines in what is a crucial year for the new lightweight jet. Investigations are under way following fuel leaks, electrical fires and a cracked cockpit window on planes sold to Japan Airlines and All Nippon Airways. Both have grounded their 787 fleets - 24 jets in total - and a quick fix is essential if Boeing is to avoid losing orders.

IC TIP: Hold at $76.5

For now, these look like teething problems. Remember, Airbus was forced to take its A380 superjumbo out of service last year after wings began to crack. Before the Japanese decision to ground planes, Deutsche Bank guessed the latest issues would be "addressed and fade within a few weeks to a month". Boeing will hope so. It has about 800 on order, and could make nearly 100 this year and 120 in 2014.