Boeing's Stock Plunges Over New FAA Safety Concerns

Boeing's stock experienced a significant drop following a report that cast doubts on the company's ability to clear a new federal safety audit. The concerns come in the wake of a recent incident involving an Alaska Airlines 737 Max 9, where part of the aircraft detached mid-flight. 

The Federal Aviation Administration (FAA) has since initiated an investigation, focusing on the 737 Max 9, with potential implications for other Max models.

Boeing's stock fell by 8% following the release of thereport. In response to these latest safety-relateddevelopments, Boeing has engaged retired US Navy Admiral Kirkland H. Donald to lead an independent review of the company's quality control systems. This review will extend to Boeing's suppliers, with findings to be reported back to Boeing's board of directors.

Boeing has faced ongoing challenges with quality and safety issues over the past five years, most notably with the 737 Max, which was implicated in two fatal crashes in 2018 and 2019. These incidents, which resulted in 346 fatalities, led to a 20-month grounding of the model and cost Boeing over $21 billion.

The FAA's ongoing investigation, along with the heightened scrutiny on Boeing's quality control practices, has led to the grounding of all 737 Max 9 planes. This has resulted in significant flight cancellations by Alaska and United Airlines as they await clearance from the FAA. 

Boeing's commitment to additional inspections and its cooperation with regulatory investigations reflect its efforts to address these critical safety concerns.