U.S. aviation regulators will launch a comprehensive review of the Boeing 787 airplane, with a special focus on its electrical systems, following a series of recent safety incidents, the new head of the Federal Aviation Administration said on Friday.
"We believe this is a safe aircraft," Michael Huerta said at a press conference with officials including U.S. Transportation Secretary Ray LaHood and Boeing commercial airplanes chief Ray Conner.
Conner said the issues were not caused by outsourcing production or ramping up production too quickly.
Following are initial reactions of analysts and investors:
NEAL DIHORA, ANALYST, MORNINGSTAR INC, CHICAGO:
"Boeing is doing a good job getting in front (as much as a company can) of the FAA situation. My view is that if the FAA deems this as a non-design issue, Boeing will be fine. If this is a design issue, it will be more troublesome because we need to pause the production to fix the design and then proceed."
"I think the more Boeing tells the world it is willing to do whatever it takes to alleviate the situation, it is a great move -- it gives airline operators and passengers comfort that they are trying their best to maintain the safety standards we all expect." RUSSELL SOLOMON, SENIOR VICE PRESIDENT, MOODY'S INVESTORS SERVICE, NEW YORK:
"There hasn't been a new airframe certification of this scale for quite some time."
"We're not expecting any major design changes or any significant financial impediments upon the company and as such we don't think it will affect the company's credit profile."
"Clearly (the investigation is) not a positive development but again, we don't think it's anything out of the ordinary. This is a very novel airframe that's been constructed and so you would naturally be inclined to think that there may be some new issues that would pop up. Unfortunately a lot of them are electrically related and they've happened in a fairly short timeframe."
"From our perspective, they are performing largely in accordance with the overall expectations of the company."