Boeing’s stock nosedived on Monday after the Federal Aviation Administration grounded dozens of Boeing 737 Max 9 planes over the weekend.
Boeing was down more than 8% as the markets opened. The drop comes just after harrowing video from an Alaska Airlines flight on Friday showed a large panel on the side of the plane being torn off after the flight took off. Phones and other items were sucked out of the window as oxygen masks deployed.
It isn’t yet clear what caused the door panel to blow out, although the FAA ordered inspections for certain Boeing 737 Max 9 aircraft operated by U.S. airlines or in U.S. territory. In total, some 171 airplanes will be affected by the grounding order.
“The FAA is requiring immediate inspections of certain Boeing 737 Max 9 planes before they can return to flight,” FAA Administrator Mike Whitaker said. “Safety will continue to drive our decision-making as we assist the NTSB’s investigation into Alaska Airlines Flight 1282.”
Alaska Airlines’s stock didn’t take too much of a hit on Monday following the incident and plane grounding. It was trading down about 1.6% by midmorning. Other major airlines were largely in the green as well.
Airbus, which is Boeing’s main competitor for commercial aircraft, saw its stock rise more than 3% amid news of the 737 Max incident.
Spirit AeroSystems Holdings, which supplies certain aircraft parts for Boeing, tumbled more than 7% on Monday morning.
“Spirit is a committed partner with Boeing on the 737 program, and we continue to work together with them on this matter,” the company said in a statement. “Spirit is following the protocols set by the regulatory authorities that guide communication in these types of circumstances and we will share further information when appropriate.”
Other suppliers of aircraft parts were also in the red following the incident. Hexcel Corp., Triumph Group, and Woodward Inc. all recorded losses on Monday morning.
This is not the first time there have been problems with the Boeing 737 Max.
In October 2018, and then just months later in March 2019, Boeing 737 Max planes crashed, killing a combined 346 people. That prompted mass groundings of the aircraft across the globe, with Boeing’s stock taking a walloping following the crashes.
In the days after the second plane crash in 2019, which was operated by Ethiopian Airlines, Boeing’s stock tumbled by as much as 64%. Boeing shares have never recovered to the level they were at prior to the plane crashes.
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Following this weekend’s incident, Boeing released a statement saying that it has assigned a technical team to help the National Transportation Safety Board investigate the situation.
“Safety is our top priority and we deeply regret the impact this event has had on our customers and their passengers,” the company said. “We agree with and fully support the FAA’s decision to require immediate inspections of 737-9 airplanes with the same configuration as the affected airplane.”