FAA Steps In and Grounds Troubled Boeing 787s

by Christopher Freeburn | January 17, 2013 9:38 am

[1]Boeing (NYSE:BA[2]) is having a bad week. It’s new, high-tech 787 Dreamliner, which represents the aviation giant’s big bet on the future of commercial air travel, has now been grounded worldwide[3].

On Wednesday, the U.S. Federal Aviation Administration (FAA) ordered airlines to keep their 787s on the ground until it can be shown that the plane’s lithium-ion batteries are safe. Thursday, European regulators grounded all 787s in Europe, the Chicago Tribune noted.

The action comes after a series of incidents involving the new jet. On Wednesday, an All Nippon Airways 787 was forced to make an emergency landing in Japan after a burning smell was detected in the cockpit[4].

Earlier this month, a Japan Airlines 787 suffered a fire in an auxiliary power system[5] while it was on the ground at Logan Airport in Boston.

Only a limited number of 787s are in currently in service. The plane experienced a number of production delays, but has secured numerous orders from airlines all over the world. In the U.S., only United Airlines (NYSE:UAL[6]) currently operates Dreamliners.

Boeing said that it was working with regulators to resolve questions about the 787 Dreamliner’s safety.

Late last week, the FAA had requested a review of the aircraft’s design and production, but said it considered the plane safe for passengers.

Shares of Boeing fell more than 1% in Thursday morning trading.

Source URL: http://investorplace.com/2013/01/faa-steps-in-and-grounds-troubled-boeing-787s/
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