FAA grounds Boeing's 787

The U.S. Federal Aviation Administration says it is requiring airlines to temporarily stop flying Boeing's (BA) 787 Dreamliner.

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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