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9 Jan, 2024 13:34

Boeing stock down as MAX fleet grounded

The US aerospace giant's shares have taken a hit after an emergency landing led to the planes being temporarily removed from service
Boeing stock down as MAX fleet grounded

Boeing shares plummeted 8% on Monday after the US Federal Aviation Administration (FAA) temporarily suspended flights for the 171 Boeing 737 MAX 9 aircraft across US airspace. The FAA’s move came swiftly after an Alaska Airlines flight had to make an emergency landing on January 6 due to a glitch in the emergency exit door.

This is not the first incident for the Boeing 737 MAX, which was launched in 2015. Fatal crashes in 2018 and 2019 led to the aircraft being grounded until 2020.  In December, Boeing advised carriers to inspect new 737 MAX planes due to potential rudder control system issues.

The FAA’s emergency airworthiness directive, which impacts 171 planes globally, requires a rigorous inspection before the planes can take to the skies again. The National Transportation Safety Board (NTSB) has launched an investigation into the Alaska Airlines incident.

The selloff in Boeing’s stock has sparked broader concerns about the company’s oversight and development. With 79 planes grounded for United Airlines, 65 for Alaska Airlines, and 74 elsewhere, uncertainties loom over the future of the airlines operating the Boeing 737 MAX planes.

This latest setback adds to Boeing’s recent challenges, fueling speculation that its European rival Airbus might seize market share. Boeing’s top brass faces intensified scrutiny from regulators and customers, signaling storm clouds ahead for the aerospace giant. As a result, jittery investors quickly dumped their shares in response to the heightened risks in Boeing’s investment outlook.

For more stories on economy & finance visit RT's business section

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