Boeing’s Dreamliner Problems Aren’t Grounded Yet

Boeing’s skill at marketing the fuel-sipping benefits of its 787 Dreamliner has far exceeded its ability to actually build the plane. That’s left the maker of the much-hyped, long-delayed aircraft with more than $16 billion in inventory tied up in planes under construction, forcing it to stash 35 nearly finished jets outside its plant in Everett, Wash., and at facilities as far away as Texas.

The aerospace giant received some good news on Aug. 26 when it gained regulatory approval to begin delivering the world’s first plastic-composite jetliner. However, most of the 787s in the works will be sitting on the tarmac for months more as they complete construction, eating into the returns of a program that’s already unlikely to log a true profit before the tail end of this decade. “This is like dinner in the anaconda right now,” says Bill Batcheller, chief investment officer at Tower Wealth Management. “It’s a big bulge in the middle of the balance sheet, and it’s got to work its way through.”