Boeing 787 Awes Investors but for Norwegian It's 'Not Good Enough'

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CHICAGO (TheStreet) -- Investors may have decided that now everything is fine with the Boeing 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.

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