Boeing shares fall on freighter delay

AP News
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Posted: Sep 19, 2011 12:19 PM
Boeing shares fall on freighter delay

Shares of Boeing Inc. fell Monday after the aerospace company said that delivery of its first new 747-8 freighters was on hold because of issues with the plane's first customer.

THE SPARK: Boeing was set to deliver the first of the revamped freighters Monday to Cargolux, a Luxembourg-based cargo hauler. But the company said Friday that the delivery wouldn't happen on schedule because of unresolved issues with Cargolux.

Boeing said it continues to work with Cargolux to determine a delivery date.

THE BACKGROUND: Cargolux recently reshuffled its board of directors after Qatar Airways took a 43 percent stake in the company. On Friday it said the new board used its first meeting to review the company's financial and business situation, although it didn't say anything about the 747.

The first Boeing 747 was delivered in 1969. But Boeing revamped it in a major overhaul that required extensive flight testing. The plane first flew on Feb. 8, 2010, and was originally supposed to have been delivered about two years ago.

A new passenger version is set to be delivered to its first customer by the end of this year. German airline Lufthansa is scheduled to get the first one for regular passenger service early next year.

SHARE ACTION: Down $2.13, or 3.3 percent, to $63.23 in morning trading. They have traded above $70 for most of the year until an August decline.