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.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
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.