Boeing at All-Time High as 787-9 Flies, Safety Fears Recede
CHICAGO ( TheStreet) -- For investors, the payoff on the Boeing
Still, the teething pains for the aircraft continue. On Sunday, Norwegian Air Shuttle had to leave 70 passengers in New York because of a hydraulic pump problem. Earlier this month, Boeing briefly grounded its two 787s due to brake problems and other issues. The planes were grounded even as the airline was touting its 787 purchases and route expansion that will have its Dreamliners in four U.S. cities by this summer.
John Goglia, a former member of the National Transportation Safety Board who blogs on airline safety for Forbes, said the 787 is now safe even if no one knows the cause of the battery fires that caused the FAA to ground the aircraft for three months early this year.
"We don't know enough to blame the battery and we don't know enough to blame the airplane," Goglia said. "Boeing put in a containment vessel for the battery and they added additional sensors so they can tell sooner what is going on with the battery and the electrical system.
"There's not much else they can do," Goglia said. "I believe they have done enough that we won't see the problem again."
Investors are equally confident. Boeing shares closed Tuesday at $117.11, up 55% this year. Shares reached an all-time high of $117.48 in intraday trading Tuesday.
On Tuesday, the Boeing 787-9 took its first test flight (pictured). The current model 787-8 can carry 210 to 250 passengers and has a range of 7,650 to 8,200 miles. The 787-9 can carry 250 to 290 passengers and has a range of 8,000 to 8,500 miles. The planned 787-10 will be able to carry 300 to 330 passengers and has a projected range of about 7,000 miles.
The 787-9 has a list price of $244 million, compared with a list price of $207 million for the 787-8. No one pays list price and many customers pay about 50% of list, analysts say.
The airplane flew for five hours and 16 minutes, taking off from Paine Field in Everett, Wash., and landing at Seattle's Boeing Field. "We've got five more hours of gas left in there," Bryan said after the plane landed, according to The Associated Press . "We'd still be flying if they hadn't told us to bring it back."
Two additional airplanes are in the final stages of assembly in Boeing's Everett factory and will soon take to the skies for testing, the company said.
Air New Zealand will take the first 787-9, with delivery scheduled for mid-2014. Twenty-five customers from around the world have ordered 388 787-9s, accounting for 40% of all 787 orders. First delivery of the 787-10 is tentatively scheduled for 2018.