FAA Steps In and Grounds Troubled Boeing 787s

Boeing (NYSE:BA) 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.

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.

Earlier this month, a Japan Airlines 787 suffered a fire in an auxiliary power system 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) 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.

Article printed from InvestorPlace Media, https://investorplace.com/2013/01/faa-steps-in-and-grounds-troubled-boeing-787s/.

©2022 InvestorPlace Media, LLC