FAA To Investigate Boeing's Production After 737 Grounding

'This incident should have never happened and it cannot happen again,' US aviation regulator says

By
Kevin George
Kevin George
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Kevin George is a freelance crypto writer and editor for Investopedia. He holds a master's degree in finance and has extensive knowledge and experience in the area of trading, markets, and economics.
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Published January 11, 2024
Logo on the side of a Boeing Co. 777-9 passenger aircraft in November 2023

Christopher Pike / Bloomberg via Getty Images

Key Takeaways

  • The Federal Aviation Administration (FAA) announced Thursday it would investigate Boeing Co.'s aircraft production and safety practices.
  • An incident last week in which a Boeing 737 Max 9's door panel ripped off in flight after an Alaska Airlines jet took off from Portland led to the grounding of certain 737 aircraft.
  • Boeing has 10 days to respond to the FAA's requests and has said it will be 100% transparent.

The Federal Aviation Administration (FAA) announced Thursday that it was launching an investigation into Boeing Co.'s (BA) production process after the grounding of its 737 Max 9 jets with the same door panel as one that flew off an Alaska Airlines jet in midair late last week.

The FAA delivered a letter to Boeing on Thursday outlining the investigation, saying the incident shouldn't have occurred and "cannot happen again." The FAA said its probe will focus on whether the company "failed to ensure completed products conformed to its approved design and were in a condition for safe operation." The aircraft maker will have 10 days to provide information on the cause of the malfunction and its plans to rectify the issue, as is standard procedure for FAA reports after an accident.

Boeing shares tumbled 8% on Monday after the company grounded a number of its 737 Max 9 jets. The move followed the incident last Friday when the Alaska Airlines jet's door panel detached in flight after taking off from Portland International Airport.

Speaking at an employee town hall this week, Boeing Chief Executive Officer (CEO) Dave Calhoun said the company would acknowledge the mistake and offer 100% transparency to regulators. “Customers do have confidence and they will again, but we’re going to have to demonstrate it by our actions," he told staff.

Alaska Airlines said Wednesday that it would cancel all its 737 Max 9 flights through Saturday for inspections, which will lead to roughly 110 to 150 flights being canceled per day. Boeing's 737 fleet was grounded in 2019 during an 18-month investigation into two successive crashes.

Boeing shares fell 2.3% on Thursday to close the session at $222.66. The stock has lost 13.5% since the start of the year.

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Article Sources
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  1. Federal Aviation Administration. "Updates on Grounding of Boeing 737 MAX 9 Aircraft."

  2. Federal Aviation Administration Aeronautical Information Manual. "Section 7. Safety, Accident, and Hazard Reports."

  3. USA Today. "737 Door Plug Incident Investigation Will Be Transparent."

  4. KOIN Portland. "Alaska Airlines Cancels All Boeing 737 MAX 9 Flights Ahead of Inspections."

  5. Sky News. "Boeing 737 MAX Crashes: Report Blames 'Horrific Culmination' of Failures."

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