Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Boeing finds new defect in continuing struggle to produce Dreamliner 787

Published 10/14/2021, 07:24 AM
Updated 10/14/2021, 05:15 PM
© Reuters. FILE PHOTO: A Boeing logo is seen at the company's facility in Everett, Washington, U.S., Jan. 21, 2020. REUTERS/Lindsey Wasson

By Sanjana Shivdas and David Shepardson

WASHINGTON (Reuters) - Boeing (NYSE:BA) Co said on Thursday that some titanium 787 Dreamliner parts were improperly manufactured over the past three years, the latest in a series of problems to plague the wide-body aircraft.

The quality issue does not affect the immediate safety of flights, the company said, adding it had notified the Federal Aviation Administration (FAA). Boeing is working to determine how many planes contain the defective part.

Boeing said the parts were provided by Leonardo SpA, which bought the items from Italy-based Manufacturing Processes Specification (MPS). MPS is no longer a supplier to Leonardo, Leonardo confirmed. Shares in Italy's Leonardo extended losses and closed down 7%. Boeing shares closed down 2%.

Leonardo said in a statement the issues are ascribed to MPS. Leonardo said that MPS "is under scrutiny by prosecutors therefore Leonardo is (an) injured party and will not bear any potential costs associated with this issue."

Italian prosecutors could not be reached for comment late Thursday.

MPS did not immediately respond to a request for comment. MPS is listed in Italy and some industry directives as Manufacturing Process Specification.

The parts include fittings that help secure the floor beam in one fuselage section, as well as other fittings, spacers, brackets, and clips within other assemblies.

Undelivered planes will be reworked, and planes already carrying passengers will go through a review process with Boeing and receive FAA confirmation.

The defect was found as the planemaker grapples with other problems in its 787 that have caused it to cut production and halt deliveries since May.

Problems started in September 2020 when the FAA said it was investigating manufacturing flaws. Airlines using that model removed eight jets from service.

Boeing was able to resume deliveries of the 787s in March after a five-month hiatus - only to halt them again in May after the FAA raised concerns about its proposed inspection method.

© Reuters. FILE PHOTO: A Boeing logo is seen at the company's facility in Everett, Washington, U.S., Jan. 21, 2020. REUTERS/Lindsey Wasson

In July, the FAA said some Dreamliners had a manufacturing quality issue near the nose of the plane that must be fixed before Boeing can deliver to customers.

Earlier this month Leonardo's chief executive said Boeing was expected to release an updated production plan for its 787.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.