Breaking Finance News

Newest Dreamliner Incident Likely Not Related to Batteries

Boeing breathed a giant sigh of relief on Saturday as British investigators released a statement saying that the fire was likely not related to the batteries. The statement read:

“…it is clear that this heat damage is remote from the area in which the aircraft main and APU (Auxiliary Power Unit) batteries are located, and, at this stage, there is no evidence of a direct causal relationship.”

Although that doesn’t completely rule out a battery issue, this, along with pictures that show the fire on the upper part of the fuselage just in front of the tail, lend more evidence to the fire being unrelated to the recent battery issues that kept the 787 fleet grounded for three months at the beginning of the year.

That doesn’t mean that Boeing is in the clear. Experts say that the area of the fire contains a lot of key systems including the oxygen system of the plane. Whether it was a coffee pot left on or a systemic problem is not known. If the problem is found to be confined to this aircraft and not a design issue, that should send the stock sharply higher but that won’t be known until the investigation is completed.

No airline with 787s in its fleet have plans to ground the aircraft until the cause of the fire is known.

[stock-tools exchange="NYSE" symbol="BA" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company listed.

 

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.