By Mauro Orru
Shares of Boeing took a nosedive in Frankfurt today following the Federal Aviation Administration's (FAA) order for a temporary grounding and immediate inspections of dozens of Boeing 737 MAX jets. This decision came after an Alaska Airlines flight experienced an emergency landing on Friday.
Alaska Airlines flight 1282 was traveling from Portland International Airport to Ontario, Calif. However, less than 30 minutes after takeoff, the aircraft experienced a midair incident where a section of the fuselage ripped away. Fortunately, all 171 passengers and six crew members on board landed safely back at the Portland airport.
The FAA's directive will impact approximately 171 of the MAX 9 jets, with inspections estimated to take between four and eight hours per aircraft.
As of 1000 GMT, Boeing shares in Frankfurt have traded 7.3% lower at EUR209.15. In New York, where Boeing is primarily listed, shares are down more than 8% pre-market.
Also facing a significant decline in share value is Spirit AeroSystems Holdings, the manufacturer responsible for installing the emergency door configuration involved in Friday's incident. Their shares have dropped over 15% pre-market.
It remains to be seen how this grounding and subsequent inspections will impact both Boeing and Spirit AeroSystems Holdings moving forward.
