Japan Investigators Begin Dreamliner Probe as Planes Are Grounded

Updated January 17, 2013, 9:31 a.m. ET

By YOSHIO TAKAHASHI And YOREE KOH

The Wall Street Journal

TOKYO—Japanese investigators on Thursday began their probe into the cause of a midair emergency on a Boeing 787 Dreamliner domestic flight as the government ordered the grounding of all 22 aircraft operated by the nation's two main carriers.

Japan aviation safety officials in Takamatsu, southwestern Japan, where the plane made an emergency landing on Wednesday, said the inside of the powerful lithium ion battery that has been connected to malfunctions on the aircraft appeared burned and swollen.

"It was like charcoal," said Hideyo Kosugi, one of the five investigators of the Japan Transportation Safety Board dispatched to the site.

Wednesday's landing, the most serious setback for Boeing's flagship jet amid a string of recent glitches, was prompted by several alarms indicating an emergency and the possible presence of smoke in the forward electronic equipment bay where the battery in question was installed.

The latest mishap prompted the U.S. Federal Aviation Administration to issue an "emergency airworthiness directive" grounding any flights of the plane by U.S.-registered carriers. On Jan. 7, batteries on a Japan Airlines Co. 787 caught fire at Boston's Logan International Airport.

Following that decision, the Japanese transport ministry ordered the grounding of the 17 Dreamliners being operated by All Nippon Airways Co., and the five currently in service with Japan Airlines Co.

"We have received the report on the airworthiness improvement order. We are taking a similar measure," Ministry of Transport Senior Vice Minister Hiroshi Kajiyama told reporters Thursday morning.

The grounded Dreamliner flights potentially poses severe problems for ANA and Japan Airlines. The two carriers were among the first global customers for the aircraft and have built their international strategies around its use.

ANA, the launch customer for the Dreamliner, plans to have a total fleet of 66 planes, while JAL plans to have 33 Dreamliner aircraft by 2017, and 45 beyond that.

A JAL executive said Thursday that he expects earnings to be affected if the suspension drags on, adding that it is hard to predict now when the aircraft will resume operations.

"If (the operation halt) gets prolonged and we see the impact, it is possible to feel the impact on earnings," Akira Yonezawa, JAL Executive Officer, said at a news conference.

Mr. Yonezawa declined to elaborate on how long the carrier can operate without seeing serious damage to its earnings because of the halt of 787 flights.

The aircraft, which saw its first commercial service in the fall of 2011, employs lightweight materials to reduce fuel usage, but also requires high-power lithium batteries, which have caused fires aboard aircraft in the past.

"The fact that the Dreamliners save as much as 20% on fuel will have an impact on profit margins, especially as such costs rise," said a stock market analyst in Tokyo.

The FAA gave no timetable for its suspension, saying Boeing will be required to demonstrate that the 787's "batteries are safe" before flights can resume. The FAA said it would work with Boeing and airlines to develop a plan to enable the planes to resume operation "as quickly and as safely as possible."

Japanese investigators said that a final report may not be ready for six to nine months, although an initial finding could come much sooner.

A spokesman at Kyoto-based GS Yuasa Corp. which provides batteries to the Dreamliner, said the battery probe "is unlikely to be completed in the short term." The company has sent three technicians to Takamatsu airport to work with investigators.

The Japanese transport ministry said investigators from Boeing would join the probe into the ANA incident, along with investigators from the FAA and the U.S. National Transportation Safety Board, who are expected to arrive on Friday.

Mr. Kosugi said while it is still unknown whether it was the battery, wiring or some other component that was at fault it was apparent there was more electric current or heat generated than the established allowable amount. He said the investigators would also look into why an automatic shutdown safety mechanism seemed to fail to prevent the overheating.

—Hiroyuki Kachi contributed to this article.

Source:   http://online.wsj.com