Aerospace and defense major
The Boeing Company
) completed the production of its first 787-9 Dreamliner. This
new variant exceeds the 787-8 by 20 feet in length and has a
superior flying range of 300 nautical miles (555 km). Most
importantly, 787-9 will be able to carry 40 more passengers than
Boeing officials are planning to take this aeroplane for a test
flight later this summer. First delivery is scheduled to take
place in mid 2014 to the launch customer Air New Zealand. To date
Boeing has received 366 airplane orders for this variant. The
average cost of a 787-9 dreamliner is $249.5 million at list
The newest incarnation features the advanced design of the 787-8
model with 50% composite materials being used to manufacture the
primary structure of this aeroplane. This makes the plane lighter
and stronger than conventional aluminum that goes into the making
of most aircraft. In addition, this aeroplane features advanced
General Electric Company
) and Rolls-Royce, which make them 20% more fuel efficient
than similar-sized aircraft.
Boeing has officially launched another model of the 787 family,
787-10, at the Paris Air Show held in Jun 2013. The company has
already started to receive positive response from commercial
jetliners and is scheduled to make first delivery in 2018.
Boeing has so far been able to maintain its schedule for the
787-9 Dreamliner. This is creditable given the glitches and
technical problems that had beset the 787-8, inordinately
delaying its first delivery. Moreover, the dramatic grounding of
all 787-8 airplanes due to battery related issues earlier in the
year had sparked off a series of setbacks for Boeing's commercial
Will Boeing be able to overcome the technical issues for 787-9?
We are hopeful that these issues are not going to be repeated,
but none the less raise our concern.
In addition to expanding its presence in the commercial airplane
market, Boeing is also an important operator in the defense
space. Boeing presently has a Zacks Rank #3 (Hold). Other
well-placed defense operators having a favorable Zacks Rank are
Lockheed Martin Corporation
Northrop Grumman Corporation
), both with a Zacks Rank #2 (Buy).
BOEING CO (BA): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
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