Midday Friday July 12, shares of Boeing Co. dropped 7% on news that an Ethiopian Airlines 787 Dreamliner caught on fire at London’s Heathrow International Airport.
The fire led to suspensions of incoming and outgoing flights at London’s busiest international hub.
It’s the latest hole in Boeing’s armor and the fallout could affect future orders of the much-maligned 787 Dreamliner. From a competitive standpoint, it’s good news for Boeing’s chief rival, Airbus.
Shares of related companies, such as Precision Cast (PCP), are also down on Friday.
Details of the fire are still forthcoming, so I’d say that the 7% drop is perhaps a bit premature. Depending on what caused the fire, it may or may not have long-term consequences for the company. Nevertheless, it’s terrible publicity for Boeing.