Boeing’s Bad Dream: Will the Stock Suffer?

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A United Airlines (NYSE:UAL) flight from Houston to Newark was forced to make an emergency landing in New Orleans on Tuesday. The plane involved was a Boeing (NYSE:BA) 787 Dreamliner, and reports indicate that a fuel-line defect was the cause of the problem that forced the landing.

What’s the Significance?

The 787 Dreamliner has gained a lot of attention as Boeing’s new cash cow. The company has orders for at least 835 units valued over $180 billion, 50 of which are going to United Airlines. Early in November, United Air celebrated its first Dreamliner flight with a successful trip between Houston and Chicago.

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“If you want to be the world’s leading airline, you need to have the world’s leading airplane,” said United CEO Jeff Smisek on the day of the first flight. The Dreamliner is up to 20 percent more fuel efficient than similar models and is expected to save billions of dollars in fuel costs.

However, the U.S. Federal Aviation Administration confirmed on Wednesday that it is requiring the inspection of the entire Dreamliner fleet. The fuel-line defect discovered in the plane that was forced into an emergency landing was traced back to a manufacturing flaw at Boeing’s factories…

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