News Column

Boeing Shares Drop After FAA's 787 Grounding

Jan. 17, 2013

Marie Szaniszlo, Boston Herald


Boeing's stock continued its downward slide today after the Federal Aviation Administration grounded all U.S.-chartered 787 Dreamliners pending a safety check of the plane's lithium batteries.

Shares opened at $72.82, down about 2 percent in the wake of an emergency landing of a 787 in Japan, which caused two airlines to cancel flights of the Dreamliner, including service between Boston and Tokyo.

All Nippon Airways grounded its Dreamliner fleet yesterday after 129 passengers and eight crew were evacuated via emergency slides because a cockpit indicator light showed a battery error, which forced the plane to land at a Japanese airport.

The incident, the latest in a string of troubles with the 787, prompted Japan Airlines to ground its own fleet of Dreamliners and use a Boeing 777 instead for scaled-back flights between Boston and Tokyo today and tomorrow, pending "further assessment."

In a statement late yesterday, Boeing CEO Jim McNerney said the company is working "around the clock" to find answers to the problems.

"We are confident the 787 is safe, and we stand behind its overall integrity," McNerney said. "We will be taking every necessary step in the coming days to assure our customers and the traveling public of the 787's safety and to return the airplanes to service."

Since a Jan. 7 incident at Logan International Airport, where a battery caught fire while a 787 was at its gate, the aircraft has racked up two fuel leaks, a wiring problem, a brake computer glitch and, last week, a cracked cockpit window.

The National Transportation Safety Board is investigating.

Source: (c)2013 the Boston Herald Distributed by MCT Information Services

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