The FAA May Limit the 787 -- Who Loses?
Mar 29th 2013 3:02PM
Updated Mar 29th 2013 3:06PM
Instead of flying long-haul routes over water, the so-called "Dreamliner" could be required to remain within two hours of an airport capable of handling an emergency landing, the wire service says, citing unnamed sources.
How bad might this be, and for whom? Certainly for Boeing, which has delivered less than 6% of the 787 aircraft ordered as of this writing. United Continental Holdings also stands to lose, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova.
In the following video, Tim explains that United's most profitable routes run over water, and several of those were to be serviced by the 787 this year. Now, the carrier may be forced to substitute with existing 757 and 777 aircraft.
Will the threat of FAA action keep you out of this stock? What about shares of competing airlines? Let us know what you think about United's prospects in the comments box below.
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The article The FAA May Limit the 787 -- Who Loses? originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings, or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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