Boeing is once again in business trouble after an incident with its planes. Boeing shares fell 8 percent in pre-market trading after announcing the decision to ground its 737 Max 9 planes. A section of the fuselage and a window broke off on Friday during a flight from Portland International Airport in Oregon to Ontario, California.
The Federal Aviation Administration (FAA) announced on Sunday that 171 Boeing 737-9 MAX planes will be removed from flying until it is determined they are safe. The decision is related to the fall of a fragment of the fuselage and window during Friday’s flight of an Alaska Airlines plane.
Boeing’s valuation declines
Boeing shares fell 8%. in pre-market trading after the announcement of the decision to ground the 737 Max 9 aircraft, from $249 to $228.50. Analysts expect Boeing’s shares to fall further after Wall Street opens.
The latest incidents are a big blow to the American aircraft manufacturer. “Boeing is still suffering the business consequences of two fatal crashes involving the 737 Max from almost five years ago, which have significantly undermined confidence in the company,” notes Bloomberg.
“Now the focus is on Boeing’s tense relationship with Spirit, its largest supplier of aircraft parts,” the portal writes.
JP Morgan analysts, however, pay attention to the decisions that foreign regulators will make. “Perhaps the most significant foreign regulator now will be China, where the government has not yet allowed carriers to resume deliveries of the 737 MAX. (…) Boeing has appeared to be on the cusp of resuming deliveries to China for some time, and there have been positive signs in recent months. Friday’s accident may delay this process, although Chinese carriers do not fly MAX 9 aircraft, analysts comment.
The door incident
The incident occurred on Friday approximately 35 minutes after take-off of the Alaska Airlines flight from Portland International Airport in Oregon to Ontario, California. According to American media, there were 171 passengers and six crew members on board.
The plane was at an altitude of almost 5,000 meters when a fragment of the fuselage intended for the possible installation of additional doors broke off. There was a sudden drop in blood pressure. Passengers were ordered to put on oxygen masks. The plane made an emergency return to the airport.
The Federal Aviation Administration (FAA) on Saturday ordered an inspection of more than 170 Boeing 737 MAX 9 planes that were grounded after Friday’s incident. On Sunday, it decided to decommission 171 machines of this type and conduct a thorough investigation of the incident. As AFP reminds, in recent years the 737 MAX 9 has had a number of technical problems and two disasters. A total of 346 people died in October 2018 and March 2019. The Boeing 737 MAX was then grounded for 20 months before it was allowed to fly again.
On Monday, the Polish Civil Aviation Office reported that no Polish airline has the B737-9 MAX in its fleet, the Civil Aviation Office reported. PLL LOTEnter Air and Buzz use Boeing 737-8 MAX machines, which have not been excluded from service – it was emphasized.
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