Boeing (NYSE:BA) experienced a significant drop of more than 8% intra-day today following difficulties with safety inspections. These issues arose after a recent incident involving a Boeing 737 Max jet. Last Friday, an emergency door component detached from a 737 Max 9 during an Alaska Airlines flight from Portland, Oregon, to Ontario, California. The flight was safely returned to Portland, with some passengers sustaining minor injuries but no fatalities.
In response, the Federal Aviation Administration (FAA) mandated a temporary grounding of approximately 171 Boeing jets on Saturday. The FAA stated that these aircraft will remain grounded until they are confirmed safe for operation. However, Reuters sources indicate that the FAA and Boeing are yet to finalize the criteria for these safety inspections, which is a vital step before the planes can be cleared to fly again.
Amidst this situation, Boeing is reportedly organizing a company-wide meeting to address the incident. This comes as the company is still under close observation due to two fatal crashes involving its 737 Max 8 model in 2018 and 2019.
Further developments include the U.S. National Transportation Safety Board’s (NTSB) discovery of a missing component from the involved Max 9 jet. This piece was located in the backyard of a house in suburban Portland and is considered crucial for understanding the cause of the accident. An NTSB spokesperson highlighted the significance of this component in the investigation.