Boeing Co. faced a significant setback in the Frankfurt Stock Exchange as its stock price plummeted by 7.52%, reaching €208.40 on January 8, following a decision by the Federal Aviation Administration (FAA) to ground specific Boeing 737 MAX 9 aircraft. This sharp decline raised concerns among investors amid broader market uncertainties, with the FAA mandating immediate inspections before affected planes can resume flight operations.
The grounding directive, affecting an estimated 171 airplanes globally, was issued due to the FAA’s identification of the need for inspections, each taking four to eight hours per aircraft. The regulatory action was prompted by an incident involving Alaska Airlines Flight 1282, as the FAA prioritized safety and supported the ongoing investigation led by the National Transportation Safety Board (NTSB).
Investors responded cautiously to the news, as the additional regulatory scrutiny compounded existing challenges faced by Boeing in the aerospace industry. Headquartered in Arlington, VA, the company has been contending with competition and prior issues related to the 737 MAX series.
This recent FAA action represents another blow to Boeing, occurring nearly five years after the global grounding of MAX jets following two fatal crashes. The move also comes at a time when Boeing is competing with Airbus, which has steadily increased its market share, particularly after the 2018 and 2019 Boeing MAX crashes that resulted in the grounding of the MAX fleet worldwide for 20 months.
