There is more bad news for Boeing after the news that its entire fleet of 787s will be temporarily grounded.
The US Federal Aviation Administration took the decision after a second incident involving battery failures led to an emergency landing in Japan.
“I think we have now crossed past the threshold of just teething pains to an area of real concern. It is a tough story for Boeing and they have got their work cut out for them to get investor confidence back into the name.” said Carter Leake, an analyst with BB/T Capital Market.
What is bad news for Boeing could be good news for Airbus, however. The Dreamliner’s problems could sharpen competition between Boeing and its European rival whose own sales dipped after problems with wing cracks on its A380 superjumbo a year ago.
The A380 crisis has since eased and most airlines report the aircraft are flying full.
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