Latest Dreamliner delay "the last straw"
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Boeing’s fifth delay on the 787 Dreamliner triggered a bigger share sell-off than any of the previous four, surprising investors just a week after the company said the plane was ready to fly. According to a Bloomberg report, Boeing CEO Scott Carson’s statement at last week’s Paris Air Show that the Dreamliner “could fly today”, made the latest delay an even bigger blow to investors.
“Because this happened at the last minute and because Scott was at the air show promising everyone it would fly, this was the last straw for many investors,” Bloomberg quoted Jon Kutler, CEO of Admiralty Partners, a private equity investor in aerospace. “After that, the management team loses a lot of credibility.”
The Dreamliner, already running two years behind schedule, will miss its 30 June maiden-flight target after engineers found areas that need reinforcing, Boeing said yesterday. The company said a new delivery timetable won’t be available for weeks and Boeing shares fell 6.5%, their biggest slide since 6 November last year.
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