-- Boeing exec says proposed enhancements are "permanent
fixes"
-- Boeing exec meets with ANA, JAL; apologizes for
inconvenience
-- Japan regulators to cooperate with FAA on deliberation of
proposals
TOKYO--The head of Boeing Co.'s (BA) commercial airplanes unit
sought to reassure Japanese regulators Thursday that a set of fixes
it proposed for its Dreamliner jets would address the safety
troubles that have grounded them.
Regulators in the country have responded cautiously so far to
the visit from Boeing commercial airplanes chief Raymond Conner,
saying that while they appreciate the multinational aerospace
corporation's strenuous efforts to settle the safety issues they
hope that the proposals "accurately" address all potential causes
so as to avoid another problem in the future.
"It will be troublesome if the measures to prevent reoccurrences
are not permanent," said Shigeru Takano, director with the Air
Transport Safety Unit in Japan's Transport Ministry.
"It is not an interim solution; this is a permanent solution,"
said Raymond Conner, the CEO of Boeing's commercial airplanes
business, after meeting with Japanese Transport Minister Akihiro
Ohta.
Mr. Conner said the solution "provides three layers of
protection," which includes measures that would both prevent the
battery from overheating, as well as contain it in the event it
does.
After Boeing's hand delivery, Japanese regulators on Thursday
said while they appreciate Boeing's strenuous efforts to settle the
safety issues they hope that the proposals "accurately address" all
potential causes so as to avoid another problem in the future.
"It will be troublesome if the measures to prevent reoccurrences
are not permanent," said Shigeru Takano, director with the Air
Transport Safety Unit in Japan's Transport Ministry.
Mr. Conner emphasized the Chicago-based company's confidence in
the safety of the powerful lithium-ion battery technology remained
unwavering.
European plane maker Airbus said earlier this month it will drop
the batteries from its A350 aircraft to avoid regulatory snags that
could delay its delivery.
Mr. Conner's whirlwind trip to Tokyo this week, which aims to
appease regulators and reassure its two largest customers of the
787, is the first time a senior executive of his rank has come to
Japan since the worldwide grounding of the jet six weeks ago. The
safety concerns with the lithium-ion battery following two
incidents in January have spurred high profile investigations on
both sides of the Pacific. U.S. Investigators have determined that
short circuits inside a battery aboard a parked Japan Airlines Co.
(9201.TO) 787 in Boston touched off uncontrollable thermal
reactions among cells, producing temperatures high enough to melt
the metal containers surrounding them. But it isn't clear what
caused the short circuits.
Japanese aviation officials are investigating what caused a
battery on an All Nippon Airways Co. (9202.TO) operated 787 to
overheat, prompting the pilot to make an emergency landing in
southern Japan on Jan. 16. They are still looking into whether
short circuits occurred.
Boeing hopes that the package of suggested fixes will be enough
to get the 50 Dreamliners around the world back in the air, but Mr.
Conner didn't indicate a timetable for when the planes will resume
service.
Officials at the Federal Aviation Administration and the
Department of Transportation, which must sign off on any fixes, are
discussing whether to approve Boeing's package of fixes before the
cause is determined.
Mr. Takano said that the Civil Aviation Bureau will discuss
Boeing's proposals with the FAA as they deliberate its contents,
but said it is unclear to what extent the two sides will work
together in reaching their respective conclusions. He said the CAB
will not leave it all up to the FAA and will make its own
considerations, indicating that their cooperative efforts may not
necessarily lead to a uniform decision, in what could further
complicate Boeing's efforts to get the 787 back in the air as soon
as possible.
Mr. Takano also said it is difficult to comment on any firm date
for when a decision on the proposals will be handed down, and
whether it will be simultaneously reached with the FAA.
"The fundamental thought--and the (transport) minister says this
often--is that we are proceeding our work in cooperation with the
FAA, but we just received the material today and will have to
discuss with the FAA how we will work together in relation to the
content (of the proposals)."
Boeing discussed its package of proposed fixes--which includes
sturdier and better-separated cells and a new fireproof container
around the batteries--with the FAA in Washington last week. Mr.
Takano of the CAB said that the content of the solution proposed on
Thursday was the same as the fixes relayed to the FAA, but declined
to comment on the details of the proposed enhancements.
On Thursday, Mr. Conner said "the solution set that we have put
in place provides three layers of protection and we feel that this
solution takes into account any possible event that could occur,
any causal factor that could cause an event and we are very
confident that we have a fix that will be permanent and will allow
us to continue with the technology."
The Wall Street Journal reported this week Boeing and GS Yuasa
Corp. (6674.TO) the Kyoto-based manufacturer of the battery, were
at odds over the proposed fixes, with the Japanese company
suggesting the enhancements under discussion are insufficient. But
Mr. Conner denied there were problems between the two companies,
saying Boeing is on the same page as Yuasa and that they have a
"great partnership."
A GS Yuasa spokesman declined to comment.
In trading on the Tokyo Stock Exchange Thursday, GS Yuasa's
shares jumped after Mr. Conner's comments. The firm's stock ended
up 7.5% compared with a 0.5% rise before he made the remarks
midday.
Mr. Conner on Wednesday apologized to the chief executive of
ANA, Shinichiro Ito, for the problems caused by the prolonged
grounding of the 787 jet. The next day, he met with JAL
executives.
In addition to both incidents taking place on 787s operated by
Japanese airliners, the Dreamliner's woes have been a particular
burden on Japan's two biggest carriers. JAL and ANA, which became
the Dreamliner's launch customer in November 2011, together own
nearly half of the 50 Dreamliners that were in service.
On Thursday, ANA said that it's tapping Osamu Shinobe as its new
president, putting at the helm an executive who was the company's
public face in the early crucial hours of handling the recent
safety woes surrounding the Dreamliner jet. ANA's leadership change
coincides with a previously announced larger reorganization that
will transform ANA into a holding company structure effective April
1.
Write to Yoree Koh at yoree.koh@wsj.com
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