FAA grounds Boeing's 787
Problems with the lithium ion batteries used to power some of the airliner's systems prompts the decision. 'Corrective action' is expected soon.
The agency says the decision to ground Boeing 787s was prompted by a second incident involving lithium ion battery failure.
The FAA says it will work with Boeing and airline carriers to develop a corrective action plan to resume 787 operations as "quickly and safely as possible.
The decision came after a 787 operated by Japan Airlines caught fire in Boston a week ago. Early Wednesday, smoke detected from a battery system forced a plane operated by Japan's All Nippon Airways to make an emergency landing.
The plane, built mostly from composites to save on fuel, seen a rash of incidents since Jan. 1. These include the fire in Boston, an oil leak, a cracked windshield and other issues.
The problems in Japan come on the heels of the U.S. government's review of the manufacturing and design of the Dreamliner. According to The Wall Street Journal, the Chicago-based company was not too keen on the review, "arguing it was unwarranted and threatened to undermine investor, customer and passenger confidence in the plane."
Boeing shares fell $2.95 to $73.99 in Wednesday's regular session. They were down an additional $1.44 to $72.90 after hours.
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[BRIEFING.COM] The stock market punctuated July with a broad-based retreat that sent the S&P 500 lower by 2.0% with all ten sectors ending in the red. The benchmark index posted a monthly decline of 1.5%, while the Russell 2000 (-2.3%) underperformed to end the month lower by 6.1%.
To get a better feel for what led to today's retreat, we'd like to look back to Wednesday, when the market had ample reason to rally, but did not. Instead, it ended basically flat after a sloppy day of ... More
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