Boeing Shares Dive on Latest MAX Issue
Boeing shares took a hit on Monday after the company announced that it had identified a new issue with its troubled 737 MAX aircraft. The issue involves a potential electrical problem that could affect the plane's flight control system.
The news comes just as Boeing was starting to recover from the fallout of two fatal crashes involving the 737 MAX in 2018 and 2019. The crashes, which killed a total of 346 people, were caused by a faulty flight control system that Boeing had failed to properly disclose to regulators and airlines.
Boeing had already grounded the 737 MAX for 20 months while it worked to fix the flight control system and regain the trust of regulators and customers. The company had recently resumed deliveries of the aircraft and was hoping to ramp up production in the coming months.
However, the latest issue could delay those plans and further damage Boeing's reputation. The company said it was working with the Federal Aviation Administration (FAA) on a fix for the problem and would not deliver any 737 MAX planes until it was resolved.
Investors reacted negatively to the news, with Boeing's stock price dropping more than 4% on Monday. The company's shares had already been under pressure due to the COVID-19 pandemic, which has severely impacted the aviation industry.
Boeing's troubles have also had a ripple effect on its suppliers and the broader aerospace industry. The company's production cuts and delays have hurt companies such as Spirit AeroSystems, which makes fuselages for the 737 MAX, and General Electric, which supplies engines for the aircraft.
It remains to be seen how long it will take for Boeing to resolve the latest issue with the 737 MAX and regain the trust of regulators and customers. The company has already paid out billions of dollars in compensation to airlines and families of crash victims, and faces ongoing investigations and lawsuits related to the crashes.
https://www.lifetechnology.com/blogs/life-technology-technology-news/boeing-shares-dive-on-latest-max-issue
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