CEO Jim McNerney said to attendees at Boeing’s (NYSE: BA) annual meeting that “The original promise of the 787 is fully intact.” His comments were premature. Japan’s two largest carriers said that fires started in the Dreamliner’s batteries and the resulting grounding of the plane will affect their financial situations. That means the companies may ask Boeing for compensation.
According to Bloomberg:
ANA Holdings Inc., and Japan Airlines Co., the world’s biggest operators of Boeing Co. 787s, forecast a bigger impact this year from the plane’s grounding as they prepare to start commercial flights with the Dreamliner.
The grounding will cut ANA’s sales by 9 billion yen ($92 million) in the year ending in March, compared with a 7 billion yen reduction a year earlier. Parking of the Dreamliner fleet will pare Japan Air’s operating profit by 2.6 billion yen this year, compared with 1.3 billion yen last year, said Norikazu Saito, a managing executive officer.
McNerney’s optimism about the 787 continues to be misplaced.
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.