Fire hazard for Boeing’s Chinook helicopters can be fixed, Bank of America says
Im Yeongsik/iStock via Getty Images

The U.S. Army can prevent fire hazards that this week led to the grounding of its CH-47 Chinook helicopters, Bank of America said in a research note on Wednesday. The danger isnât related to the airframes made by Boeing (NYSE:BA), and instead is found in the T55 engines made by Honeywell (HON).
More than 70 of the helicopters have the component that is believed to be the source of the fire hazard, the Wall Street Journal reported. The Army has about 400 Chinook helicopters in its fleet.
The reliability of the Chinook suggests that the fire hazard can be fixed, Bank of America analyst Ronald Epstein said in the report. More than 6,000 T55 engines are in military and commercial service worldwide. Together, they have racked up more than 12 million hours of flight time.
Honeywell (HON) said itâs working with the Army to fix parts known as O-rings that didnât meet the companyâs specifications.
âNone of the questionable O-rings originated or were part of any Honeywell production or Honeywell-overhauled engines,â Honeywell said in a statement.
Bank of America maintained its Neutral rating on Boeing (BA). Boeing has declined 22% this year, compared with a 17% slide for the S&P 500 Stock Index (SP500).
Seeking Alpha contributor Dhierin Bechai has a Buy rating on Boeing (BA) on the possibility for a longer-term improvement in aircraft deliveries. Contributor JR Research rates Boeing as a Hold on its market value.