Shares of Boeing(BA) fell Thursday after the Federal Aviation Administration said it was monitoring “targeted inspections of 737 MAX aeroplanes to look for a possible loose bolt in the rudder control system.”
Boeing informed regulators and airlines of the possible mishap after an unspecified airline discovered a bolt with a missing nut during a routine inspection. Boing also inspected undelivered planes and found a loose nut in one of its aircraft.
It is the latest of many 737-Max-related setbacks for Boeing this year. In April, Deliveries of some 737 MAX aircraft were halted after the planemaker discovered a problem with some parts supplied by SpiritAeroSystems(SPR). The company discovered another manufacturing defect in Spirit-supplied parts, leading it to lower its delivery goal in October.
The 737 MAX was also grounded for nearly two years in March 2019 after a flight stabilizing system was involved in two fatal crashes in the span of five months.
The FAA said that it was closely monitoring Boeing 737 MAX targeted inspections and would consider additional action based on any further discovery of loose or improper hardware.
Boeing said, “The issue identified on the particular aeroplane has been remedied.” “Out of an abundance of caution, we are recommending operators inspect their 737 MAX aeroplanes and inform us of any findings. We informed the FAA and our customers and will continue to keep them aware of the progress."
Boeing shares moved about 1.6% lower on Thursday but were still up nearly 32% for the year.
Key Takeaways
- According to the Federal Aviation Administration(FAA), Boeing told regulators that there is a possibility of loose bolts in the rudder control system of the new 737 MAX jets.
- The loose bolts were reportedly found by an unspecified airline during routine maintenance.
- This comes as the latest setback for Boeing 737 MAX model which was grounded for nearly two years after a flaw in its flight stabilizing unit was involved in two fatal plane crashes.
- Boeing shares fell about 1.6% lower on Thursday.
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