Boeing shares decline in premarket trading on Monday as investors absorbed the news of the Federal Aviation Administration (FAA) issuing a temporary grounding order for numerous Boeing 737 Max 9 aircraft.
Shares were down 8% in early hours trading at 4:30 a.m. ET. The shares were trading at 228.54 price, down-20.46 (-8.22%)
Also Read: 600 Alaska and United flights cancelled after Boeing 737 grounding
This directive to ground over 170 aircraft was conveyed through an emergency airworthiness directive on Saturday, impacted approximately 171 planes globally, mandating inspections before resuming flight operations. The measure is applicable to U.S. airlines and carriers within U.S. territory, followed an incident on an Alaska Airlines flight.
Social media disseminated images portraying a breach in the aircraft's structure, depicting passengers utilizing oxygen masks. Following the incident, the flight returned to Portland shortly after taking off for Ontario, California. The National Transportation Safety Board (NTSB) initiated an investigation into the incident, emphasizing the prioritization of safety in decision-making.
FAA Administrator Mike Whitaker affirmed the commitment to safety, stating, “Safety will continue to drive our decision-making as we assist the NTSB’s investigation into Alaska Airlines Flight 1282.”
{{/usCountry}}FAA Administrator Mike Whitaker affirmed the commitment to safety, stating, “Safety will continue to drive our decision-making as we assist the NTSB’s investigation into Alaska Airlines Flight 1282.”
{{/usCountry}}Among the 171 grounded aircraft specified in the directive, United Airlines and Alaska Airlines have 79 and 65 affected planes, respectively, with the remaining 74 distributed across six other airlines. The aircraft involved in the Friday blowout, a 178-seater, had been delivered to Alaska Airlines on November 11th.
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While large-scale groundings by aviation authorities are infrequent, the FAA has maintained vigilance over the Boeing 737 Max since two fatal crashes almost five years ago necessitated a worldwide grounding of the jetliner.