Aerospace giant Boeing faced renewed scrutiny after a panel blew out mid-air on a 737 MAX plane operated by Alaska Airlines in the US on Friday. The latest safety incident sent Boeing shares down 8% in premarket trading as 171 MAX aircraft were grounded pending probes.
According to the Federal Aviation Administration (FAA), the panel separation happened during a flight on a 737 MAX 9 jet with 171 passengers aboard. While the cause is still unknown, the incident could not have come at a worse time for the beleaguered American manufacturer.
Boeing has struggled to fully recover after two deadly crashes led to a prolonged grounding of the MAX globally starting in 2019. As it works through billions in debt and lags rival Airbus in orders, new safety setbacks threaten Boeing’s strategy of retaining market share with upgraded versions of the MAX in the 2020s.
Any potential design or manufacturing flaws unearthed during investigations could also further delay the certification of two new MAX variants – the MAX 7 and MAX 10 – targeted at the lucrative narrow-body jet market.
The focus will especially be on how regulators treat the smallest MAX 7, which is next in line for approval. According to Jeff Guzzetti, former US crash investigator, the outcome will indicate the harsher oversight Boeing potentially faces after this disturbing occurrence.
China, a major market for passenger aircraft, has also sought details of the blowout, given overlapping concerns around MAX safety and US-China trade tensions.
Meanwhile in India, Akasa Air completed inspections across its new MAX fleet after the country’s aviation watchdog DGCA ordered emergency checks as a precaution. The fledgling carrier affirmed there were no adverse findings from its audits.
While the reason behind the panel loss is still unclear, the timing hands Boeing another crisis setback just when it appeared to be regaining momentum post-pandemic. With its financial health and market share at risk, the manufacturer stares at further turbulence ahead.
