Boeing Back at Pre-Fire Price as Probe Turns to Honeywell BeaconJulie Johnsson
Boeing Co. shares recovered to the price before last week’s fire on board a 787 Dreamliner in London after U.K. regulators said a beacon made by Honeywell International Inc. should be deactivated on all other planes.
The comments eased investors’ renewed concerns about the innovative architecture of the 787, which relies on electricity to power almost every function. The Dreamliner was grounded for three months this year after lithium-ion batteries overheated on two aircraft.
The stock rose 2.6 percent to $107.52 at 11:39 a.m in New York. Boeing was trading at about $107.50 on July 12 before reports of the blaze at Heathrow Airport on the parked 787 operated by Ethiopian Airlines Enterprise sent the shares to their biggest drop in two years. The Dreamliner was empty at the time and no one was injured.
The U.K. Air Accidents Investigation Branch said today that the Honeywell emergency locater transmitter should be deactivated on all other Dreamliners as a precautionary measure “until appropriate airworthiness actions can be completed.”
Morris Township, New Jersey-based Honeywell, which makes dozens of components for the aircraft, from distance measuring equipment to tail-cone lights, has been invited to join the investigation.
Honeywell rose 0.8 percent to $83.11.