Boeing’s stock drops after FAA launches formal probe into 737-9 Max incident
Business,FAA,Boeing,Air Travel,Airline Safety,Airlines,Regulations
Shares of Boeing Co. dropped toward a six-week low Thursday, after the Federal Aviation Administration said it formally launched an investigation into whether the aerospace giant failed to complete safety tests on the certain products.
“This investigation is a result of an incident on a Boeing Model 737-9 Max where it lost a ‘plug’ type passenger door and additional discrepancies,” the FAA said in a statement. “Boeing’s manufacturing practices need to comply with the high safety standards they’re legally accountable to meet.”
The stock BA, -1.41% slumped 1.1% in afternoon trading, to reverse an earlier intraday gain of as much as 0.2%. It has tumbled 9.5% this week in the wake of the incident, in which a panel blew out of a Alaska Airlines 737-9 Max while it was in flight.
