Shares in Boeing fell sharply after All Nippon Airways and Japan Airlines became the first airlines to ground their 787 Dreamliners because of concerns about the safety of the passenger jet.

Japan's two leading airlines made their move yesterday after a 787 operated by ANA had to make an emergency landing because one of its pilots saw smoke emanating from the aircraft.

The groundings were a significant setback for Boeing, and its newest passenger jet, and the US manufacturer's shares fell more than 3 per cent.

The company risks losing public confidence in the 787 after a spate of incidents raised questions about the jet's safety and the reliability of its innovative electrical power system. - Copyright The Financial Times Limited 2013