This Day On The Street
Continue to site
ADVERTISEMENT
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 Awes Investors but for Norwegian It's 'Not Good Enough'

CHICAGO ( TheStreet) -- Investors may have decided that now everything is fine with the Boeing (BA - Get Report) 787, but Norwegian Air Shuttle isn't there yet.

The Oslo-based carrier began flying the Dreamliner in August, the start of a highly publicized effort to expand its international flying, including U.S. service, a unique move for a low-fare, low-cost European carrier.

But Norwegian's two 787s have suffered from a series of problems, including failures of the brakes, hydraulic pumps and power systems, causing cancellations of several flights and, in other cases, requiring the use of leased Airbus aircraft. Norwegian flies the 787 on routes from Oslo and Stockholm to Bangkok and New York.

Executives from the airline and from Boeing on Wednesday are scheduled to meet in Oslo to review the problems. "We will discuss the issues with our 787 fleet and the fact that the reliability of the aircraft hasn't been good enough," said Norwegian Air spokesman Lasse Sandaker-Nielsen. "We expect new aircraft to be more reliable."

Asked if Norwegian would seek compensation, he responded: "We expect Boeing to take its fair share of the responsibility."

Norwegian has taken delivery of two 787s and has six more on order, with the next delivery scheduled for late November. It has four deliveries scheduled for 2014 and one for 2015. The carrier has announced plans to fly the 787 from Stockholm to Los Angeles in March, from Copenhagen to Los Angeles in April, from Oslo to Los Angeles in June, from Stockholm to Oakland in May, and from Oslo to Oakland and Orlando in May.

Boeing has been the hottest stock in the Dow Jones Industrial Average this year, with shares up 58%, as 787 deliveries have ramped up and the clouds hovering over the aircraft have seemingly parted. Shortly after the opening bell on Wednesday, shares were trading up 6 cents to $119.06.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

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
Submit an article to us!
SYM TRADE IT LAST %CHG
BA $144.02 0.00%
AAPL $128.70 0.00%
FB $78.81 0.00%
GOOG $540.78 0.00%
TSLA $230.51 0.00%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs