GS Yuasa Gains After United Restarts 787 Flights: Tokyo Mover
GS Yuasa Corp. (6674), the maker of lithium-ion batteries for Boeing Co.’s 787 Dreamliner, rose by the most in more than four years after United Airlines (UAL), the only U.S. operator of the plane, resumed flights yesterday.
The Kyoto-based company climbed 17 percent, its daily limit and the most since November 2008, to 558 yen as of the close of trading in Tokyo. ANA Holdings Inc. (9202), the biggest operator of Dreamliners, rose 2.3 percent to 223 yen.
United became the fourth carrier to resume flights of the 787 after a more than three-month grounding of the aircraft after two lithium-ion battery malfunctions. ANA and Japan Airlines Co., the second-largest operator of the planes, are set to restart flights on June 1 after the cell overheating incidents caused the first grounding of an entire fleet type since 1979.
“Concerns about responsibility for the battery problems are fading,” said Hideki Yasuda, an analyst at Ace Securities Co. “It’s not going to turn into a blame game. With the restart of flights by ANA and JAL, given their strict safety measures, there’s a chance GS Yuasa shares could rise more.”
U.S. Dreamliner service gives Boeing a chance to promote the 787’s reputation in the world’s biggest aviation market. Qatar Airways Ltd., Ethiopian Airlines Enterprise and Air India Ltd. have also restarted 787 flights.
The 787 returned to service on United Flight 1 from Houston to Chicago, with Boeing Chief Executive Officer Jim McNerney and Jeff Smisek, CEO of airline parent United Continental Holdings Inc., sitting next to each other in coach. They were seen chatting during the two-hour flight, which landed about 1:15 p.m. local time.
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