Boeing is now under investigation by the FAA

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on Jan 11, 2024
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  • Federal Aviation Administration has launched a probe into Boeing Co.
  • The investigation is related to a recent incident with Alaska Airlines.
  • Shares of Boeing Co have lost roughly 15% in less than a month.

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Boeing Co (NYSE: BA) lost another 1.0% on Thursday after the FAA said it has launched a probe into the aerospace and defense company.

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Details of the FAA investigation announced today

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The Federal Aviation Administration is investigating whether Boeing “failed to ensure completed products conformed to its approved design”.

It has also set out to discover if the New York listed firm did indeed make sure that its product was “in a condition for safe operation in compliance with FAA regulations”.

The news arrives only days after a Boeing plane of Alaska Airlines had to make an emergency landing after its window blew out at an altitude of 16,000 feet.

Wall Street currently has a consensus “overweight” rating on Boeing stock that’s lost roughly 15% in less than a month.

Alaska Airlines found similar error in other planes

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Boeing is yet to comment on the announcement the Federal Aviation Administration made on Thursday. Dave Calhoun – its chief executive has already vowed to make sure that such an incident “never happens again”.

Note that the FAA grounded the 737 Max 9 aircraft almost immediately after the Alaska Airlines scare for inspections. Alaska and United Airlines have reported similar error in other planes as well.

Boeing Co is scheduled to report its financial results for the fourth quarter in the final week of January. Consensus is for it to lose 75 cents a share versus $1.75 per share a year ago.

Last month, Lufthansa – the German flagship air carrier placed a sizable order for the Boeing 737 for the first time since 1995 (read more).

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