Boeing’s Rally Moves the Dow Despite Dreamliner Concerns
As of January 4, Boeing had 848 total orders for the 787 Dreamliner, 49 of which have been delivered, leaving 799 unfilled. At about $225.2 million per plane ($206.8 million for the 787-8, $243.6 million for the 787-9), it doesn’t take a quant to figure out that there is nearly $200 billion sitting on the table here. (Fun fact, Boeing invested about $32 billion to develop the Dreamliner.)
Here are the airlines who have received deliveries so far:
|All Nippon Airways||66||17|
|LOT Polish Airlines||8||2|
|United Air Lines||50||6|
The fire and the fuel leak happened on Dreamliners owned by Japan Airlines, while the break problems were with a plane owned by All Nippon Airways. Both companies have since reiterated their commitment to their orders. An Air India spokesman commented on the news, “It’s a new plane, and some minor glitches do happen. It’s not a cause of concern.”
Even Qatar Airways CEO Akbar Al Baker, who previously criticized the plane for some minor faults — particularly an issue with engines made by General Electric (NYSE:GE) — said that the recent string of events “doesn’t mean we are going to cancel our orders. It’s a revolutionary airplane.”
Curiously enough, Boeing’s Wednesday rally makes it the day’s biggest Dow-component gainer, and has helped pull the index up 0.30 percent despite some steep losses from other members.
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