The FAA May Limit the 787 -- Who Loses?

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Reuters is reporting that the Federal Aviation Administration (FAA) may restrict operations of Boeing's (NYSE: BA  ) troubled 787 jetliner when it returns to service in the coming weeks.

Instead of flying long-haul routes over water, the so-called "Dreamliner" could be required to remain within two hours of an airport capable of handling an emergency landing, the wire service says, citing unnamed sources.

How bad might this be, and for whom? Certainly for Boeing, which has delivered less than 6% of the 787 aircraft ordered as of this writing. United Continental Holdings (NYSE: UAL  ) also stands to lose, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova.

In the following video, Tim explains that United's most profitable routes run over water, and several of those were to be serviced by the 787 this year. Now, the carrier may be forced to substitute with existing 757 and 777 aircraft.

Will the threat of FAA action keep you out of this stock? What about shares of competing airlines? Let us know what you think about United's prospects in the comments box below.

For as much as airlines are dependent on benevolent fuel prices for sustainable profits, there are other ways to profit from volatile oil prices. We name a few of the more intriguing options in a new special report, "3 Stocks for $100 Oil." For FREE access to this research, simply click here now.

Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 31, 2013, at 12:14 PM, TMFGemHunter wrote:

    Hi Tim,

    Glad you caught this story. However, I don't think the impact is as big as you suggest. Even with a 120 minute diversion time, you can fly most North Atlantic or North Pacific routes. The diversion points in Iceland/Alaska/Russia are close enough to the great circle routes to make that possible.

    The only announced 787 route that might be impractical with ETOPS 120 certification is Houston-Lagos (the Houston-Auckland flight that was canceled last year also would have required a longer diversion time). So United could still use the 787 for international routes even if it is limited to ETOPS 120 certification initially. The only reason to go all-domestic would be if United management is worried that the Boeing fix is inadequate.



  • Report this Comment On April 01, 2013, at 12:12 PM, EirikRaude2000 wrote:

    Problem is: Japan Air Lines (JAL) will not be so lucky.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2338068, ~/Articles/ArticleHandler.aspx, 9/24/2016 11:51:46 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
UAL $50.95 Down -0.09 -0.18%
United Continental… CAPS Rating: **
BA $131.78 Down -0.09 -0.07%
Boeing CAPS Rating: ****