The Boeing Company (NYSE: BA) warned airlines of a possible production issue in some of its 737 MAX jets on Friday. The electrical fault, as per the aeroplane manufacturer, affects close to 90 of its aircraft globally.
Boeing shares opened at £182.72 in the stock market on Friday and closed the regular session at £183.94 per share. In comparison, the New York Stock Exchange-listed company had started the year at a much lower £148 per share. If you want to invest in the stock market online, you will need a reliable stockbroker – here is a comparison of the top few to make selection easier for you.
United, Southwest, American Airlines grounded dozens of MAX jets
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Boeing recommended 16 MAX operators to verify if an electrical power system component had a sufficient ground path. Following the notice, United, Southwest, and American Airlines grounded over 60 MAX airliners.
The largest 737 MAX operator, Southwest Airlines, said that out of its 58 MAX jetliners, it will swap out 30. The airline, however, expressed confidence that the move was unlikely to significantly disrupt operations. American Airlines, on the other hand, reported the issue in 17 of its 737 MAX aircraft that it had delivered only recently.
The news comes only two weeks after Boeing sold 100 new 737 MAX-7 jetliners to Southwest Airlines. The U.S. planemaker lost its title of the world’s largest aircraft manufacturer to the European rival Airbus SE last year.
According to Boeing, it is a matter of hours or could take a few days to fix each plane. The U.S. planemaker also reassured that the fault was different from cockpit safety issues that made the Federal Aviation Administration (FAA) ground its most in-demand airliner for almost two years.
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Cowen analyst Cai von Rumohr’s comments on Friday
Analyst Cai von Rumohr of Cowen commented on the news on Friday and said:
“Because the problem is understood and the fix looks relatively straightforward, it’s unlikely to be a show stopper, although it’s unclear if it might have any impact on the expected MAX delivery ramp.”
In separate news from the United States, technology giant Amazon Inc. won sufficient votes on Friday to beat the union effort in Alabama.
Boeing performed largely downbeat in the stock market last year with an annual decline of a little under 40%. At the time of writing, the American multinational corporation is valued at £107.44 billion.