Boeing shares downgraded on 787 concerns

Published 8:32 am Tuesday, October 20, 2009

Boeing Co. shares have dropped more than 3 percent this morning after Morgan Stanley downgraded the aerospace giant’s stock.

According to a Wall Street Journal report, Morgan Stanley is concerned that Boeing’s 787 will be delayed even further.

Boeing already has pushed back the jet’s first delivery by two and a half years. Last Friday, FlightBlogger, an industry blog, suggested Boeing may miss its goal of putting the 787 in the air by the end of 2009.

Morgan Stanley said it’s not only worried about first flight but is “even more concerned first delivery could be 6 months delayed to Spring 2011.” The company could fall short on guarantees to customers, including weight and fuel burn assertions, which would entitle airlines to remuneration, the firm said.

Boeing will report its third quarter earnings tomorrow and is expected to provide an update on its troubled 787 Dreamliner program.