Boeing Boeing shares dip by 9% after 737 Max door blowout incident mid-air
Following the U.S. aviation regulator's temporary grounding of some of its best-selling 737 MAX jets, Boeing shares plunged 8.6% in early U.S. trade on Monday, wiping off about $13 billion in market value, according to Reuters.
United Airlines and other US carriers that operate the jet changed direction from premarket to trade slightly higher, but Alaska Air's shares were down 4.5%, according to a Reuters report.
The fuselage portion of the brand-new MAX 9 jet made and originally installed by Spirit AeroSystems saw a 13.8% decline, adding to the uncertainty surrounding the supplier, which had just recovered from a series of quality issues.
Other aerospace suppliers also saw a decline: General Electric, which jointly owns a joint venture with France's Safran to produce engines for the 737 MAX series, saw a 1% decline, while Honeywell saw a 1% decline.
A number of quality issues with the 737 MAX family of aeroplanes were seen negatively by some Wall Street analysts, while others saw the accident as a brief setback for Boeing.
"It highlights a history of quality escape problems, particularly at Spirit AeroSystems. Quality escapes are not acceptable in an industry in which single failures can have serious consequences," reported Reuters, citing Bernstein analysts.
The stock of rival Boeing, Airbus (AIR.PA), increased 2.7% on Monday. After two Boeing MAX crashes in 2018 and 2019, which resulted in the aircraft being grounded globally for 20 months and the deaths of around 350 people, the European manufacturer has increased its market share, according to the report.
The incident
The harrowing incident happened when an Alaska Airlines jetliner experienced a fuselage blowout, forcing an emergency landing three miles above Oregon, according to a Financial Express report.
As the jet depressurized, miraculously, none of the 171 passengers and six staff members were hurt. The detached door is currently being sought after by the authorities at Oregon Route 217 and Barnes Road.
Jennifer Homendy, chair of the National Transportation Safety Board (NTSB), emphasised how fortunate the incident was to happen just before cruising altitude, when people are usually circulating around the cabin.
Passengers have described hearing a loud blast, a whooshing sound, and the immediate deployment of gas masks. The NTSB and investigators are on the scene to look into the circumstances surrounding the blowout.
Inspections and Groundings
Following a fuselage explosion on an Alaska Airlines aircraft, federal officials ordered the immediate grounding of Boeing 737 Max 9, according to the Financial Express report.
About 171 aircraft worldwide are impacted by this precautionary measure, which necessitates inspections that take four to eight hours per aircraft.
In response to the instruction, Alaska Airlines moved quickly, claiming that recent maintenance had already included inspections on 18 of its 65 Boeing 737 Max 9 aircraft.
The remaining inspections are anticipated to be completed in the next several days, after which these inspected aircraft will be cleared to immediately resume operation, said Alaska Airlines.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
