Boeing Shares Plunge After Fire Aboard 787 Dreamliner

Joe Goldman |

A fire was reported aboard one of Boeing’s BA 787 Dreamliners at Heathrow Airport in London Friday afternoon, prompting Boeing shares to plunge just a few hours after reaching fresh all-time highs.

Luckily, no passengers were on board when the aircraft caught fire. While pictures suggest that the blaze was small, the event was significant enough to fully shut down arrivals and departures in Heathrow.

Boeing already has officials at Heathrow investigating the scene, and details are scare and still emerging at the moment.

The fire caps a brutal several months for Boeing, which has dealt with numerous 787 issues in the recent past.

December 2012: CEO James McNearny says times that the Dreamliner is experiencing battery issues, but insists they are typical for new models.

January 7, 2013: A lithium-Ion battery starts a small fire aboard an empty 787 in Boston’s Logan International Airport.

January 9, 2013: One of United Airlines’ six 787s experiences battery-related wiring issues.

January 11, 2013: FAA launches complete review of the 787’s critical systems, looking in to virtually every aspect of the aircraft.

January 16, 2013: FAA orders the grounding of all 787’s.

April 19, 2013: FAA ends grounding after Boeing takes major steps to overhaul the battery systems

June 24, 2013: A 787 was diverted to Houston after a break indicator failed. It marked the third such incident for Dreamliners in only six days. 

July 12, 2013: A 787 catches fire at Heathrow Airport in London.

Amid fears of continuing 787 malfunctions, Boeing shares dropped from an all-time high of $108.15 to a session-low of $98.99. Shares recovered some of the day’s losses, rising to $102.66. Despite the setback, Boeing is up 37 percent year-to-date.

Beoing suppliers Honeywell HON and Rockwell Collins COL were also hit during trading on Friday, each dropping around one percent from Friday’s high.

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Companies

Symbol Name Price Change % Volume
BA Boeing Company (The) 156.49 1.10 0.71 2,707,872
SBDK.P Stanley Black & Decker Inc 4.75% Perp Cum Conv Pfd n/a n/a n/a 0

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