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 Tuesday session on the defensive after spending the entire day in a steady retreat. The S&P 500 (-0.6%) posted its third consecutive decline, while the small-cap Russell 2000 (-0.9%) slipped behind the broader market during afternoon action.
Equity indices were pressured from the start following some overnight developments that weighed on sentiment. The market tried to overcome the early weakness, but could not stage a sustained rebound, ... More
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