Good news, investors! On Friday, the Federal Aviation Administration approved The Boeing Company (NYSE:BA)‘s detailed design changes for the battery on the 787 Dreamliner. Considering the grounding of the Dreamliner has cost Boeing an estimated $600 million and counting, the FAA’s decision is great news for the company. It’s also great news for Boeing’s Dreamliner partners.
Will it fly?
With the FAA’s decision, The Boeing Company (NYSE:BA) is expected to issue a service bulletin, which will facilitate quick repairs to the 50 planes owned by airlines around the world. Once repaired, the FAA is expected to issue a final directive, ending the Dreamliner’s grounding. Even better news? Boeing will be allowed to resume deliveries of the 787 and expects to deliver all of the planes ordered for this year.
Now let’s just hope the fixes work, as investigators in the U.S. and Japan haven’t yet determined what caused the lithium-ion battery to overheat in the first place. Still, Mark Sinnett, The Boeing Company (NYSE:BA)’s chief engineer for the 787, said that based on recent tests, the redesigns — including better insulation, a stainless steel enclosure that’ll vent possible smoke and contain fire as well as vent hazardous gases out of the plane, make the battery less likely to overheat.