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 finished the Wednesday session on an upbeat note with the Nasdaq (+1.3%) ending in the lead. The S&P 500 settled higher by 1.1% with all ten sectors posting gains.
The benchmark index spent the entire trading day in the green, rallying to new highs during the last hour of action. The tech-heavy Nasdaq, meanwhile, briefly dipped into the red during morning action, but was able to recover swiftly.
Stocks began the trading day with modest gains ... More
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The company is scrambling to protect its equities arm, which could face declining volume and revenue as competitors close the gap.
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