* Follows incident in Japan on Wednesday
* JAL, ANA already grounded their 787 fleets
* Shares fall 2 pct in after-hours trading
By Andrea Shalal-Esa
WASHINGTON, Jan 16 The U.S. Federal Aviation
Administration said on Wednesday it would temporarily ground
Boeing Co's 787s after a second incident involving
battery failures caused one of the Dreamliner passenger jets to
make an emergency landing in Japan.
The FAA said airlines would have to demonstrate that the
lithium ion batteries involved were safe before they could
resume flying Boeing's newest commercial airliner, but gave no
details on when that could occur.
Boeing could not be immediately reached for comment.
All Nippon Airways Co Ltd said instruments aboard a
domestic flight indicated a battery error, triggering emergency
warnings. The incident was described by a transport ministry
official as "highly serious" - language used in international
safety circles as indicating there could have been an accident.
Boeing shares fell 2 percent in after-hours trading to
$72.80 after the FAA announcement.
The 787, which has a list price of $207 million, represents
a leap in the way planes are designed and built, but the project
has been plagued by cost overruns and years of delays. Some have
suggested Boeing's rush to get planes built after those delays
resulted in the recent problems, a charge the company denies.
The use of new battery technology is among the cost-saving
features of the 787, which Boeing says burns 20 percent less
fuel than rival jetliners using older technology.
Lithium-ion batteries can catch fire if they are overcharged
and, once alight, they are difficult to put out as the chemicals
produce oxygen, Boeing's chief engineer for the 787, Mike
Sinnett, told reporters last week. He said lithium-ion was not
the only battery choice, but "it was the right choice".
In Asia, only the Japanese and Air India have the Dreamliner
in service, but other airlines are among those globally to have
ordered around 850 of the new aircraft.
Boeing has said it will at least break even on the cost of
building the 1,100 new 787s it expects to deliver over the next
decade. Some analysts, however, say Boeing may never make money
from the aircraft, given its enormous development cost.
Any additional cost from fixing problems discovered by the
string of recent incidents would affect those forecasts and
could hit Boeing's bottom line more quickly if it has to stop
delivering planes, analysts said.