Boeing defends 787 reliability; shares rally

AAA??Jan. 9, 2013?2:06 PM ET
Boeing defends 787 reliability; shares rally
By JOSHUA FREEDBy JOSHUA FREED, AP Business Writer??

FILE - In this Jan. 27, 2012, file photo, Boeing's newest aircraft, the Boeing 787, sits on the tarmac at Huntsville International Airport after a 3600-mile flight from Dublin, in Huntsville, Ala. Boeing executives insisted Wednesday, Jan. 9, 2013, that its 787 Dreamliner is safe, and investors rallied behind the company. But federal investigators are probing a Monday, Jan 7, 2013 fire aboard an empty 787 in Boston, the latest glitch for a high-profile jet that has a lot riding on it, both for Boeing and its airline customers. (AP Photo/The Huntsville Times, Eric Schultz, File)

FILE - In this Jan. 27, 2012, file photo, Boeing's newest aircraft, the Boeing 787, sits on the tarmac at Huntsville International Airport after a 3600-mile flight from Dublin, in Huntsville, Ala. Boeing executives insisted Wednesday, Jan. 9, 2013, that its 787 Dreamliner is safe, and investors rallied behind the company. But federal investigators are probing a Monday, Jan 7, 2013 fire aboard an empty 787 in Boston, the latest glitch for a high-profile jet that has a lot riding on it, both for Boeing and its airline customers. (AP Photo/The Huntsville Times, Eric Schultz, File)

FILE - In this Jan. 27, 2012, file photo, Boeing's newest aircraft, the Boeing 787, sits on the tarmac at Huntsville International Airport after a 3600-mile flight from Dublin, in Huntsville, Ala. Boeing executives insisted Wednesday, Jan. 9, 2013, that its 787 Dreamliner is safe, and investors rallied behind the company. But federal investigators are probing a Monday, Jan 7, 2013 fire aboard an empty 787 in Boston, the latest glitch for a high-profile jet that has a lot riding on it, both for Boeing and its airline customers. (AP Photo/The Huntsville Times, Eric Schultz, File)

A Japan Airlines Boeing 787 Dreamliner jet aircraft is surrounded by emergency vehicles while parked at a terminal E gate at Logan International Airport in Boston, Monday, Jan. 7, 2013. Boeing has a lot riding on the 787. The long-range jet promises a smoother travel experience and is 20 percent more fuel efficient than older models. After years of delays, Boeing has now delivered 49 of the planes, with almost 800 more on order. (AP Photo/Stephan Savoia)

In this Thursday, Oct. 11, 2012 photo, an American Airlines Boeing 757 passenger jet takes off as another waits on the taxiway at Miami International Airport in Miami. Directors of American Airlines' parent company likely won't make a decision when they meet Wednesday, Jan 9, 2013, to consider a possible merger with US Airways, even as momentum for a deal is building. Investors have been bidding up US Airways' stock price, and leaders of the two pilot unions agree on how to combine contracts, two developments that analysts say strengthen the case for a tie-up. (AP Photo/Wilfredo Lee)

Boeing said Wednesday it has "extreme confidence" in its 787 Dreamliner even as federal investigators try to determine the cause of a fire that has prompted new worries about the plane.

The fire happened Monday in one of the plane's lithium ion batteries. Mike Sinnett, Boeing's chief engineer for 787, wouldn't comment on that specific incident, but told reporters that the battery is designed to avoid overheating and the area around the battery is designed to withstand a fire.

But questions remain about the high-profile jet, which has a lot riding on it both for Boeing and its airline customers. After a nearly three-year delay, Boeing has delivered 49 of the 787s so far, and has about 800 more on order.

Investors rallied behind the company Wednesday. Boeing shares gained 3.2 percent to $76.47, after dropping 4.6 percent the two previous days.

The Dreamliner has had a rough stretch. Besides Monday's fire aboard an empty Japan Airlines plane in Boston, a separate JAL 787 experienced a fuel leak on Tuesday. And All Nippon Airways cancelled a domestic 787 flight in Japan Wednesday when a computer system indicated a problem with the plane's brakes. Last month, a United Airlines 787 flying from Houston to Newark, N.J., diverted to New Orleans because of an electrical problem with a power distribution panel.

Sinnett says the problems Boeing has seen so far with the 787 are similar to early issues with the Boeing 777, which was introduced in the mid-1990s.

The battery fire is of particular interest because lithium batteries generally have not been used on large planes before the 787. Sinnett says the nature of lithium ion batteries means no fire extinguisher system will stop them from burning once they start. The NTSB said it took firefighters 40 minutes to put out Monday's fire.

Associated Press

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