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Boyd Group International President Michael Boyd on the FAA temporarily grounding Boeing’s 787 Dreamliner.
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Now when he FAA first announce its review of the dreamliner my next guest told me just last week that he expected the issue to pass quickly is -- would bring more 780 sevens online.
Mike Boyd is president and an aviation consulting firm Boyd group international welcome back -- selling out of the FAA's grading the entire 787 fleet.
It's problem perhaps especially with those lithium ion batteries is it worse than we initially thought.
Well I think -- -- judging my my prediction last week I better not go to Las Vegas and start -- I hope I don't know you're very self deprecating.
But but Mary Schiavo was right the FAA knew about these batteries the FAA certified and all the way now the FAA -- Yeah capital -- now is this I'm shocked shocked to find lithium batteries here.
So that they bear some of the responsibility of this as well as does Boeing.
This better get fixed soon -- gonna really start to tell on Boeing's bottom line.
It was interesting last week right we spoke shortly after the FAA said you know we think the dreamliner.
Is safe we believe in this airliner but we're gonna conduct this review tens of thousands a flying our hours already.
ID 787 dreamliner so what's going on behind the scenes here.
I think -- abundance of caution and I think.
The FA kind of got forced into doing this because the Japanese granted -- -- the keep in mind two days ago United Airlines came out to the airlines airplane for safe.
United knows what to do when they didn't fall off a turnip truck -- they -- the early airplane is safe I would take their word for but if the FAA wants to go ahead and try to make.
Our case for fixing something that might have a problem in the future after that -- but it's gonna be a problem for -- if it doesn't get fixed soon.
We understand the polish airline lot is demanding cash back for its order.
Why when airlines be canceling their Boeing 787 orders left and right at this point.
Well number one the other this battery deal and a few other glitches this airplane has performed beautifully it's it's the only airplane for example united could fly.
But in Tokyo in Denver -- because of its performance that a lot of neat things about this airplane so you're not gonna find people canceling unless something of that and says.
We found major problems than it did two years to fix we're gonna have issues but short of that and I think so.
Years of production delays for the 787 billions of dollars already in cost over -- what do you think -- -- gonna cost Boeing this latest chapter.
It might be this airplane could be a lost leader well well into the future for Boeing.
I mean look at what happened at lot last night it wasn't just the airplane being canceled they had a welcoming party that the media -- descended on.
I mean it -- humiliation for those executives that's worth some money do so I think going forward it's gonna be one of those things is gonna cost Boeing.
Tens of million hundreds of millions of dollars.
-- watching it shares selloff yet again here today for the airlines in particular the united only has six of the 780 sevens probably not a huge destruction for them but.
In Japan JAL and on the economy such a significant portion of their fleet is made up of 780 -- -- necessity -- huge revenue -- for them.
Well we have seventeen -- very seventeen very expensive airplane sitting that means you're not flying to Beijing and enough flying to Shanghai.
You're not flying to it to LA or San Francisco.
Costing you a lot of money.
Here in the US United Airlines that they get for them flying and they they -- many cancellations that they normally don't they'll fill that and we won't even notice it.
But for all the -- in Japan airlines this is severe.
So let's talk a little history I think you brought up the point of the -- 747.
When it was first introduced something like forty years ago.
Had some hiccups as well obviously it's a classic airline now it's flying it's in the mix it's a standard -- aircraft equipment.
What's the likelihood this turns out to be just a -- up getting started for the 787 and it just kind of picks up from here -- or it's just a total bust what what.
What's your take -- up.
You know I think it's gonna be -- -- It might be a very very big -- up.
But I think it's gonna be -- up the other example with the Lockheed -- that came out.
Back in the ninety.
Late 1950s.
It put Lockheed out of the airliner business because of major problems I don't think that'll be the case here -- -- -- half the passenger business for -- Right right after airliner business that didn't -- Michael -- thank you so much appreciate your time here now office.
Thank you.
