Boeing Shares Dip Amid Concerns Over Potential Loose Bolt in 737 MAX Rudder System
Boeing has alerted the Federal Aviation Administration (FAA) and airline customers about a potential issue involving loose bolts in the rudder control system of the latest 737 MAX aircraft models.
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Key Insights
- Boeing has notified regulatory authorities and airline partners about the potential presence of loose bolts within the rudder control system of newly manufactured 737 MAX jets, as reported by the Federal Aviation Administration (FAA).
- An unidentified airline detected the issue during standard maintenance procedures.
- This incident adds to the series of manufacturing challenges faced by Boeing’s 737 MAX, which was grounded for nearly two years following two tragic crashes linked to its flight stabilization system.
On Thursday, Boeing's stock price declined after the FAA announced that the company had informed both regulators and airlines of a possible defect involving a loose bolt in the rudder control mechanism of new 737 MAX airplanes.
The issue came to light when an unnamed airline discovered a bolt missing its securing nut during routine maintenance checks, prompting Boeing to conduct inspections on undelivered aircraft and identify an improperly tightened nut on one plane.
This development is the latest setback for Boeing’s 737 MAX program in 2024. Earlier in the year, deliveries of certain 737 MAX variants were paused in April due to parts concerns involving supplier Spirit AeroSystems. Additional manufacturing defects in Spirit-supplied components were identified in August, leading Boeing to revise downward its delivery targets in October.
The 737 MAX fleet had been grounded worldwide in March 2019 for nearly two years after its flight control system was implicated in two fatal accidents occurring within five months.
As of 11 a.m. Eastern Time on Thursday, Boeing shares were trading approximately 1.6% lower but have gained nearly 32% year-to-date.
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