Boeing (NYSE:BA) is once again under scrutiny after a panel fell off of one of its 737 Max 9 aircrafts in the middle of an Alaska Airlines (NYSE:ALK) flight on Friday night. As a result, the Federal Aviation Administration (FAA) has grounded a significant number of Max 9s while it investigates the incident. One of today’s top-trending tickers, BA stock is sinking more than 8% as of this writing.
Boeing has survived much worse incidents in the last decade, including multiple, fatal crashes. Moreover, one of the company’s suppliers and not Boeing itself may be at fault for the panel issue, per Bloomberg. Still, Boeing could lose significant market share to its main competitor, Europe-based Airbus (OTCMKTS:EADSY), as a result of the incident.
The Incident and the FAA’s Reaction
So, what exactly happened in the incident this past Friday? Reportedly, an exit panel on the side of an Alaska Airlines plane blew off in the middle of the flight, creating a large “gaping hole” in the cabin wall and causing passengers’ oxygen masks to deploy. Luckily, the plane was able to make an emergency landing and no one was badly hurt in the incident. As CNBC reports, the panel in question is “not used by Alaska Airlines, or other carriers that don’t have high-density seating configurations, and was plugged.”
Investigators located the 737 Max 9’s door plug today. What’s more, the head of the National Transportation Safety Board said that the discovery could prove very important. One of Boeing’s suppliers, Spirit AeroSystems (NYSE:SPR), may have played a role in the incident due to manufacturing quality issues.
The FAA has responded to the incident by grounding “more than 170 Boeing 737 Max 9s.” Alaska Airlines and United Airlines (NYSE:UAL) have also grounded “their entire fleets” of 737 Max 9s until further notice.
On top of BA stock’s 8% loss so far today, SPR stock is sinking nearly 10% and ALK stock is down more than 2%. Meanwhile, UAL stock is actually up more than 1% as of this writing.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
