Boeing Co (NYSE: BA) can no longer self-certify its 787 Dreamliners for airworthiness, announced the U.S. FAA on Tuesday. The newly produced units will need a final inspection by the regulator before they can be delivered.
Boeing last delivered 787 in May 2021
The authority to inspect and certify the 787s will remain with the Federal Aviation Administration unless it’s convinced that Boeing can consistently produce the wide-body airliners that fully comply with the regulator’s design standards.
Boeing was likely to resume 787 deliveries in the coming months after almost a year-long pause. The FAA announcement on Tuesday, however, raises the question if further delays are to be expected.
Baird, however, called the regulator’s decision “old news” and reiterated its “outperform” rating on Boeing with a price target of $306 that represents a 40% upside from here. Boeing doesn’t have the authority to self-certify its 737 Max either.
Boeing’s Stanley Deal: Asia has started to recover
Also on Tuesday, Boeing Commercial Airplanes’ CEO Stanley Deal said Asia had started to recover, but it will take time to return to 2018 levels. Speaking with CNBC at the 2022 Singapore Air Show, he said:
We’re starting to see Asia recover; the freight market has been leading there. But it’ll take time to return to 2018 levels. It’s a two-speed recovery; domestic markets first, and then the international market. I think that carries us into the 2024 time frame.
Deal expects the international recovery to catch pace as the COVID restrictions continue to ease. In January, Boeing reported financial results for its fourth quarter that came in shy of Street estimates.
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