Advertisement

Meggitt subsidiary supplied battery charger unit to Boeing's Dreamliners

Aerospace components engineer Meggitt is the ultimate owner of a company which provided battery charger units for Boeing's now grounded Dreamliner air fleet.

Aerospace components engineer Meggitt is the ultimate owner of a company which provided battery charger units for Boeing's now grounded Dreamliner air fleet.

In 2011, FTSE 100-listed Meggitt acquired Pacific Scientific, which also included the purchase of a company called Securaplane Technologies.

Securaplane Tehnologies' website currently states: "Securaplane has pioneered lithium battery technology on commercial fixed and rotor wing applications, producing the charger for the lithium main ship batteries on the Boeing 787 and the aircraft's wireless emergency lighting system."

Advertisement - Article continues below

The lithium-ion batteries used in Boeing's Dreamliners have come under intense public scrutiny in recent days after America's Federal Aviation Administration (FAA) issued an emergency directive which grounded all Boeing 787s operated by American airlines until the aerospace company could prove the batteries were safe.

"Before further flight, operators of US-registered Boeing 787 aircraft must demonstrate to the Federal Aviation Administration that the batteries are safe," the administration stated.

"The battery failures resulted in the release of flammable electrolytes, heat damage and smoke on two 787 airplanes. The root cause of these failures is under investigation. These conditions, if not corrected, could result in damage to critical systems and structures and the potential for fire in the electrical compartment," the statement continued.

In spite of probing questions, neither the FAA nor other aviation regulators have squarely pointed the finger of blame on lithium ion batteries or their chargers and other possibilities remain with regard to the cause of the aircraft problems.

Jefferies: Potential short-term effect on Meggitt share priceSandy Morris, an equity analyst at broker Jefferies weighed in on the subject on Monday pointing out that "it would be premature and quite possibly mistaken to identify lithium-ion battery technology as the villain of the piece".

With regard to any potential impact on Meggitt's share price, Morris added: "It is possible that Meggitt, as supplier of the B787 BCU, will be affected by some negative sentiment in the short-term."

A 787 battery incident occurred on the ground in Boston on January 7th and a separate incident occurred in-flight in Japan on January 16th.

Meggitt's share price was down 2.74% to 425.20p at 09:02 on Monday morning.

MF

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/economy/inflation/601584/the-end-of-the-bond-bull-market-and-the-return-of-inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
Visit/investments/commodities/gold/601587/bullish-gold-price-cup-and-handle-chart-pattern
Gold

This chart pattern could be extraordinarily bullish for gold

The mother of all patterns is developing in the gold charts, says Dominic Frisby. And if everything plays out well, gold could hit a price that invest…
1 Jul 2020
Visit/investments/property/601606/house-prices-crash-uk-property-prices-falling-where-next
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020