Impact of Boeing’s new defect on its 787 Dreamliner

Yahoo Finance’s Emily McCormick breaks down concerns of Boeing’s 787 Dreamliner and the impact of this new concern for Boeing.

Video Transcript

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ALEXIS CHRISTOFOROUS: More problems for Boeing's Dreamliner. US regulators say some 787 Dreamliner parts were improperly manufactured over the past three years. And we're seeing the stock take a hit as a result. Yahoo Finance's Emily McCormick here now with more details. Emily.

EMILY MCCORMICK: Well, Alexis, as you mentioned, some fresh concerns here for Boeing and investors in Boeing. That stock is down this afternoon, and it is the worst performer in the Dow, after multiple reports detailed that some titanium parts in Boeing 787 Dreamliners were not properly manufactured in the aircraft made over the last three years. Now these parts would need to be replaced. And they were supplied via the Italian company, Leonardo SPA, which had in turn, bought the items from Italy-based Manufacturing Processes Specification. That's the name of that company.

But according to a report from Bloomberg in terms of what the impact of this new concern is going to be, Boeing said that it's currently inspecting aircraft that have not yet been delivered for these defective parts, and it's already in the process of preparing two Dreamliners that have been sent to customers that had not yet begun commercial flights. But as of now, the total number of aircraft that are impacted by these faulty parts is still not known.

Now Boeing has also said that the quality issue does not affect the immediate safety of flights, though the company has notified the FAA about these concerns. But of course, this does add to a string of issues around Boeing's quality control procedures. That's in turn, prompted additional scrutiny by air safety regulators and numerous production cuts and delivery halts for the 787 Dreamliner specifically.

Now currently, those deliveries are still halted. If we take a look here at the timeline of what these production delays and halts had actually looked like, the FAA had said back in September 2020 that it was investigating manufacturing with the 787 Dreamliner. That had in turn led to a five-month halt in deliveries of the 787 that resumed in March this year. But then another delay and a halt on production was implemented in May. So again, not really seeing any handovers of the 787 Dreamliner at present. And this latest concern is probably only going to add to some of those delays, Alexis.

ALEXIS CHRISTOFOROUS: All right, thanks for breaking it down for us. Yahoo Finance's Emily McCormick.

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