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Fireplace hazard for Boeing’s Chinook helicopters will be mounted, Financial institution of America says (NYSE:BA)


Sep 3, 2022

Im Yeongsik/iStock by way of Getty Photos

The U.S. Military can stop fireplace hazards that this week led to the grounding of its CH-47 Chinook helicopters, Financial institution of America stated in a analysis notice on Wednesday. The hazard isn’t associated to the airframes made by Boeing (NYSE:BA), and as a substitute is discovered within the T55 engines made by Honeywell (HON).

Greater than 70 of the helicopters have the element that’s believed to be the supply of the hearth hazard, the Wall Road Journal reported. The Military has about 400 Chinook helicopters in its fleet.

The reliability of the Chinook means that the hearth hazard will be mounted, Financial institution of America analyst Ronald Epstein stated within the report. Greater than 6,000 T55 engines are in navy and industrial service worldwide. Collectively, they’ve racked up greater than 12 million hours of flight time.

Honeywell (HON) stated it’s working with the Military to repair elements often called O-rings that didn’t meet the corporate’s specs.

“Not one of the questionable O-rings originated or had been a part of any Honeywell manufacturing or Honeywell-overhauled engines,” Honeywell stated in an announcement.

Financial institution of America maintained its Impartial ranking on Boeing (BA). Boeing has declined 22% this 12 months, in contrast with a 17% slide for the S&P 500 Inventory Index (SP500).

Looking for Alpha contributor Dhierin Bechai has a Purchase ranking on Boeing (BA) on the likelihood for a longer-term enchancment in plane deliveries. Contributor JR Analysis charges Boeing as a Maintain on its market worth.

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