Boeing 737 Max 9 Production Under FAA Scrutiny in 2025 After $222.66 Stock Drop
The FAA has initiated a thorough investigation into Boeing's manufacturing practices following the recent in-flight door panel failure on a 737 Max 9, prompting a significant grounding and impacting Boeing's stock price.
“This failure was unacceptable and must never recur,” states the U.S. aviation authority.
Essential Highlights
- The Federal Aviation Administration (FAA) has launched a comprehensive review of Boeing’s aircraft production and safety protocols.
- A midair incident involving a Boeing 737 Max 9’s door panel detaching after takeoff from Portland led to the suspension of specific 737 Max 9 operations.
- Boeing is required to respond within 10 days, pledging full transparency during the investigation.
In response to the alarming event where a door panel detached mid-flight from an Alaska Airlines Boeing 737 Max 9 last week, the FAA initiated a formal inquiry into Boeing’s manufacturing processes. The agency emphasized that such an incident is unacceptable and must be prevented in the future.
The FAA’s letter to Boeing outlines the probe’s focus on whether Boeing failed to ensure that its completed aircraft met approved design standards and were safe for operation. Boeing has been given a 10-day window to disclose the root cause and corrective measures, aligning with FAA’s standard post-incident procedures.
Following the incident, Boeing’s stock experienced a sharp decline, dropping 8% on the Monday after the grounding announcement. The grounding affects several 737 Max 9 jets, following the midair door panel separation after the Alaska Airlines flight departed Portland International Airport.
Boeing CEO Dave Calhoun addressed employees, committing to full accountability and transparency with regulators. He assured that customer trust will be restored through decisive actions.
Alaska Airlines has proactively canceled all 737 Max 9 flights through Saturday to conduct thorough inspections, resulting in approximately 110 to 150 daily flight cancellations. This recalls the 2019 grounding of Boeing’s 737 fleet during an extensive 18-month safety investigation.
As of Thursday’s close, Boeing shares settled at $222.66, marking a 2.3% drop on the day and a 13.5% decline year-to-date.
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