On Friday, January 5, an incident that consisted of a door blow-off occurred in an Alaska Airlines’ Boeing 737 MAX. The pilots had to make an emergency landing only 7 minutes after the plane’s departure. The 171 passengers remained uninjured, despite the quick loss of cabin tension leading the oxygen masks falling from the ceiling. The seats near the damaged door were vacant, according to Jennifer Homendy, the Transportation Safety Board Chair.
The Startling Cause Behind Boeing 737 MAX’s Mid-Air Scare
Emergency inspections of the 737 MAX Boeing’s door revealed that the problem could’ve occurred as a result of the presence of loose bolts on door plugs, stated the Alaskan United Airlines on Monday. Investigators at the Material Laboratory are now detaining the door plug that was recovered from the backyard of an Oregon man’s house.
Arthur Rosenberg—aviation attorney and experienced pilot—suggests that the incident may have stemmed from what he referred to as a “manufacturing defect” that caused the door plugs to detach. “The bolts and the fasteners which were holding it in place failed for some reason,” he told CBC News Network, adding that investigators should be able to determine the causes of the incident by recovering the plug and the remaining parts of the fuselage structure. The NTSB stated that testing will help to determine whether the bolts had been installed.
The Financial Impact of the Boeing 737 MAX Ordeal
When it comes to the financial aspect, the programs related to Boeing 737 and 787 (that have also experienced some difficulties but of lesser impact) are the principal sources of the Seattle group’s cash flow growth.
According to the company’s website with statistics finalized at the end of November, only 1,377 Boeing 373 MAX aircraft would have been delivered worldwide, while 4,543 Boeing 373 (all models) are still pending on its books out of a total of 5,914 planes ordered.
The aircraft producer has benefited from an increased momentum in recent months as fears about the program have been lifted with hopes that flights over China would be authorized with the possibility for the group to reach its goal of a free cash flow of $10 billion by 2025 or 2026.
The consensus expects some profits for the American company this year ($3.6 billion), after a fifth year of losses in 2023 ($2.5 billion loss). Numerous analysts (approximately 80% buyers and 22 neutral according to a consensus established by FactSet) also increased their price target by December.
It must be mentioned that over the whole 2023, the stock gained 30% and even 40% starting from the end of October. However, the beginning of 2024 is expected to be more complicated.
Tracing Boeing’s Stock Fluctuations Post the 737 MAX Crisis
The detachment of the door plug on the 737 MAX 9 aircraft of an Alaska Airline flight, that took place last Friday, had some pretty serious consequences on Boeing’s shares as they’ve known a 8% drop in the following day and up to 10% decrease on the whole week.
The accident caused The Federal Aviation Administration to suspend the aircraft. The producer of the door plug, Spirit AeroSystems’ stock price, has decreased by more than 11% since the beginning of trading on Monday.
According to FlightAware, Alaska Airlines, along with United Airlines, the heaviest investors in MAX 9, have called off more than 350 flights on Monday, which represents 20% of Alaska’s plans and 8% of United’s. United’s stock increased by 2.8% earlier this week, while Alaska’s decreased by 0.8%.
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