FAA Steps In and Grounds Troubled Boeing 787s

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

boeing plane 630 flickr 300x200 FAA Steps In and Grounds Troubled Boeing 787s[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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/06/boeing_plane_630_flickr.jpg
  2. BA: http://studio-5.financialcontent.com/investplace/quote?Symbol=BA
  3. been grounded worldwide: http://www.chicagotribune.com/business/breaking/chi-dreamliners-grounded-20130116,0,2351415.story
  4. after a burning smell was detected in the cockpit: http://investorplace.com/2013/01/airlines-ground-entire-fleet-of-boeing-787s/
  5. suffered a fire in an auxiliary power system: http://investorplace.com/2013/01/boeing-787-catches-fire-at-gate-in-boston/
  6. UAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=UAL

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