Boeing shares experienced a decline in premarket trading in France stock market on Monday as investors absorbed the news of the Federal Aviation Administration (FAA) issuing a temporary grounding order for a number of Boeing 737 Max 9 aircraft.
During the early hours of trading at 4:30 a.m. ET, Boeing shares were down 8%, trading at a price of 228.54, marking a decrease of 20.46 (-8.22%).
The FAA’s emergency airworthiness directive, issued on Saturday, mandated the temporary grounding of over 170 aircraft globally, affecting approximately 171 planes. This directive requires thorough inspections before the resumption of flight operations. The impact is specifically on U.S. airlines and carriers within U.S. territory and follows an incident on an Alaska Airlines flight.
Images circulated on social media depicted a structural issue with the aircraft, showing passengers using oxygen masks. Subsequent to the incident, the flight returned to Portland shortly after departing for Ontario, California. The National Transportation Safety Board (NTSB) has launched an investigation into the incident, emphasizing a commitment to prioritizing safety in decision-making.
“Safety will continue to drive our decision-making as we assist the NTSB’s investigation into Alaska Airlines Flight 1282,” FAA Administrator Mike Whitaker affirmed the commitment to safety stated.
Within the list of 171 grounded aircraft outlined in the directive, United Airlines and Alaska Airlines find themselves with 79 and 65 affected planes, respectively. The remaining 74 are spread across six other airlines. The aircraft implicated in the Friday incident, a 178-seater, had been handed over to Alaska Airlines on November 11th.
Although extensive groundings mandated by aviation authorities are rare, the FAA has been steadfast in its oversight of the Boeing 737 Max. This diligence stems from two fatal crashes nearly five years ago, prompting a global grounding of the jetliner.
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