The US Federal Aviation Administration ( FAA ) immediately halted flights for all 171 Boeing 737 MAX 9 aircraft in US airspace after an emergency landing by an Alaska Airlines flight on January 6 due to a problem with the emergency exit door, sending Boeing shares on the nosedive. Shares of the US aircraft behemoth have suffered, losing 8 % of their market value as a result of FAA decision information.
The FAA’s airworthiness order, which applies to 171 aircraft worldwide, calls for a rigorous inspection before continuing flight operations. The National Transportation Safety Board (NTSB ) is currently looking into the Alaska Airlines incident.
Prior to the most current Alaska Airlines incident, the Boeing 737 MAX aircraft, which was introduced in 2015, had numerous situations. Following deadly wrecks, the plane were closely scrutinized from 2018 to 2020. Due to potential issues with the steering control system, Boeing suggested inspections of novel 737 MAX aircraft in December.
The decline in Boeing’s investment has caused widespread concerns about the management and development of the business. Difficulties surround the future of the airlines that now operate the Boeing 737 MAX aircraft as United Airlines grounded 79 aircraft, Alaska Airlines 65, and 74 have been grounded by various airlines.
This most latest setback adds to Boeing’s current problems and raises the possibility that Airbus, a rival company, may start to gain market share. The top managers at Boeing are now being watched more closely by regulators and clients, which raises potential problems for the aviation business. As a result of the increased challenges associated with Boeing’s purchase leads, worried investors quickly sold off their stock.
SOURCE: News of FAA Grounding of the 737 MAX affects Boeing share price.