This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Boeing 787: A Paradigm Shift or Just a Nice Airplane?

"The A350 hasn't flown, but it has the same game plan as the 787, to be as efficient as possible in a smaller package," Hamlin said. "Singapore took 20 of them while returning bigger planes and taking (a few) A380s.

"We've seen that aircraft with too many seats haven't done so well," he added. "As (former AMR CEO) Bob Crandall once said, 'Nobody ever went broke with an aircraft that is too small.'"

United is the first U.S. carrier to fly the 787, but ANA, Japan Air Lines and Ethiopian have flown the aircraft to and from the U.S. Of the 33 now flying, ANA has 16, JAL has six, Ethiopian, Air India, LAN, and United have two each and Qatar has one. Boeing has 805 firm orders. Potential orders from American (AAMRQ.PK) and Delta (DAL - Get Report), which inherited an order from Northwest, have not yet been booked and are not counted.

Despite "teething problems," customers have been happy with the 787, said aviation consultant Scott Hamilton. "I haven't heard of any airline having any particular problems with the airplane once it entered service," he said. ANA and Air India briefly grounded aircraft due to engine problems.

Like many major construction projects, the 787 arrived late and over budget. The first delivery was three years late and, even last week, questions arose about how quickly the next three United 787s will arrive. Boeing long ago admitted to major flaws in its execution of a plan to outsource key components to an array of vendors around the world. In setting up a second 787 plant in Charleston, S.C., Boeing stepped into the hornet's nest of Congressional anti-labor hysteria, which the company reeled in by negotiating a new contract with the International Association of Machinists in 2011. Now, the IAM is seeking to organize the Charleston plant.

In August, Australia's Qantas Airways said it would cancel orders for 35 787s; the airline still has options for 50 of the planes. In March, China Eastern cancelled an order for 24 aircraft. But orders come and go. Boeing once had about 860 orders. Now, it has orders for 805 after delivering 33.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BA $122.56 -0.85%
DAL $42.01 -4.61%
UAL $46.86 -3.20%
AAPL $94.02 -2.67%
FB $104.07 -5.81%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs