More bad Boeing 737 news has BA stock down on Monday.
Boeing (NYSE:BA) is dealing with problems around its Boeing 737 aircraft today due to an issue that was revealed by the Federal Aviation Administration (FAA). This problem has to do parts in the wings of the aircraft being defective.
Here’s a portion of the FAA’s statement on the matter.
“Following an investigation conducted by Boeing and the FAA Certificate Management Office (CMO), we have determined that up to 148 parts manufactured by a Boeing sub-tier supplier are affected. Boeing has identified groups of both 737NG and 737MAX airplane serial numbers on which these suspect parts may have been installed. 32 NG and 33 MAX are affected in the U.S. Affected worldwide fleet are 133 NG and 179 MAX aircraft.”
The FAA warns that this bad Boeing 737 news could have a negative impact on aircraft in flight. This includes the risk of a premature failure or cracks from a flawed manufacturing process. The FAA says this that is unlikely to result in the loss of an aircraft, but could damage it during flight.
The bad Boeing 737 news includes the FAA mandating a Boeing service action. This will require the company to identify and remove affected parts from service. Operators will have 10 days to take this action. The agency also alerted international authorities to the issue.
BA stock was down 1% as of Monday morning, but is up 5% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
