Here is the text of the FAA statement:
Here is the text of Boeing's statement:
Boeing Chairman, President and CEO Jim McNerney issued the following statement today after the U.S. Federal Aviation Administration (FAA) issued an emergency airworthiness directive that requires U.S. 787 operators to temporarily cease operations and recommends other regulatory agencies to follow suit:Thus the FAA is requiring the operators to prove to the FAA that the batteries are safe to operate on their flights. I expect that other aviation regulatory agencies will require the same of the 787 operators registered in their own countries.
"The safety of passengers and crew members who fly aboard Boeing airplanes is our highest priority.
"Boeing is committed to supporting the FAA and finding answers as quickly as possible. The company is working around the clock with its customers and the various regulatory and investigative authorities. We will make available the entire resources of The Boeing Company to assist.
"We are confident the 787 is safe and we stand behind its overall integrity. 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.
"Boeing deeply regrets the impact that recent events have had on the operating schedules of our customers and the inconvenience to them and their passengers."
It is not known how long the 787s will be out of service but as a point of reference, the FAA grounded the DC-10 in 1979 after a horrific crash of an American Airlines DC-10 in Chicago. Those airplanes were grounded for a month. The seriousness of this battery issue is not fully understood at this time but it may not last as long as a month.
The maker of the battery, GS Yuasa of Japan is under a lot of pressure to figure out what is happening with their batteries. Everything will be examined including the manufacturing of the cells themselves as well as potential flaws in the design. Solutions may include switching to a different type of battery, perhaps Ni-Cads but I'm not sure if that is feasible.
In terms of production, I don't believe that Boeing will stop production and assembly of the 787 though they will not be able to carry out any test flights until they are cleared to do so by the FAA. The ramps at Everett and Charleston will fill up if the emergency AD lasts more than a month. What is not known is how this will affect the planned ramp up of the 787s later this year.
One area that may see an effect is the on going labor negotiations between Boeing management and SPEEA. Already SPEEA has flowated the idea of extending the already expired contract. According the the proposal from SPEEA's web site, they propose to roll the items to which both sides have agreed to into the existing contract and extending the current contract another four years. Boeing may be advised to take this offer as they can ill aford a strike at this juncture. Here's the text from SPEEA's web site:
With the desire to focus all attention on solving the emergent issues with the 787,
the SPEEA Professional and Technical Negotiation Teams today (Jan. 16) the union representing engineers and technical workers today (Jan. 16) proposed incorporating areas of agreement from ongoing negotiations into existing contracts and extending our Boeing contracts for another four years.
This “best and final” offer by SPEEA, IFPTE Local 2001, was presented as negotiations with Boeing resumed at 1 p.m. with the assistance of the Federal Mediation and Conciliation Service (FMCS) at the SeaTac Hilton.
SPEEA’s unprecedented offer would free Boeing and 23,000 engineers and technical workers from protracted and increasingly contentious negotiations that appear headed for a strike. It also allows the company and our technical workforce to focus on
reaffirming confidence and proving the 787
is the reliable and safe product employees know it to be. Completing negotiations also helps Boeing stay focused on supporting customers, engineering the 767 tanker, 737 MAX, increasing 737 and 777 production rates and the other products needed for our national defense.
“These negotiations have been going on for more than a year,” said Tom McCarty, SPEEA president and Professional Team member. “At this point, we should move forward with the items upon which we can agree, and leave the status quo in place for the remaining items.”
In addition to the proposed contract extension, SPEEA requested that Boeing continue to meet under the auspices of FMCS mediation to tackle the difficult issues that have proven so divisive in these negotiations.
“Our hope is that we can work collaboratively to find solutions in a data-rich environment outside of the constraints of the collective bargaining process” said Ryan Rule, Professional Team member.
In making the proposal, SPEEA agreed to accept Boeing’s funding mechanism for the Ed Wells Partnership training program. The status quo proposal continues to offset company medical costs through annual deductible increases based on salary growth. To put to rest the pension issue, a major point of contention, SPEEA proposes to accept the same pension proposal that Boeing negotiated with the International Association of Machinists (IAM District 751). Finally, the contract extension offer is made with the understanding Boeing recognizes same-sex survivor pension benefits pursuant to Washington state law.
“With our contracts put to rest, we can all roll up our sleeves and work the issues facing the 787 and Boeing,” said Sandy Hastings, Technical Team member. “SPEEA members know this is a great airplane, and we are eager to prove this to our customers, the flying public and the FAA (Federal Aviation Administration).”
SPEEA and Boeing started meeting in April to negotiate new contracts for 15,550 engineers and 7,400 technical workers. In October, engineers rejected Boeing’s initial offer by 95.5 percent. Technical workers rejected the company’s offer by 97 percent. Existing contracts expired Nov. 25. Since resuming talks Jan. 9 after a month-long FMCS-imposed recess, members increased preparations for a possible strike. A 40-day strike in 2000 by SPEEA stopped deliveries and caused major factory and service bottlenecks at Boeing plants around the country.
The issues facing the 787 are extremely serious but they can be overcome. The biggest hit will be to the 787s reputation and reliability. Boeing will need to focus 110% of its talent and resources on fixing these issues and demonstrating that the 787 is a safe aircraft not just to their customers but to the traveling public. I do hope that the FAA initiated review will get to the bottom of these problems and find solutions to them. In the meantime, I'll continue to track the production of the 787 but I don't expect to see flights for another few weeks.