Boeing, the American aerospace giant, is facing further setbacks at the start of the new year. According to The Wall Street Journal, the highly anticipated return of 737 MAX deliveries to China has been hit with additional delays due to an emergency incident that occurred onboard an Alaska Airlines flight earlier this month.
The incident involved a panel blowing off midair while the aircraft, a MAX 9 jet, was in operation. This incident led to the immediate grounding of the MAX 9 jets by the Federal Aviation Administration. Although Chinese airlines do not operate MAX 9 jets, the incident has raised concerns in China, where deliveries of other 737 MAX aircraft were just about to resume. The Chinese government had suspended deliveries in 2019 following two fatal crashes involving 737 MAX 8 planes.
China Southern Airlines, along with several other Chinese carriers, was preparing to receive undelivered Boeing planes as early as this month. However, in response to the recent incident, the airline has decided to conduct additional safety inspections on these undelivered MAX jets. This move aims to ensure the utmost safety standards are met before accepting any new aircraft from Boeing.
In addition to the airline's actions, China's aviation regulator has also urged all Chinese carriers to perform extra safety inspections on their aircraft fleet. The objective is to prioritize passenger safety and prevent any potential issues as Boeing works through the fallout from the recent incident.
These delays in deliveries represent another blow for Boeing, jeopardizing its relationship with one of its biggest markets. The company is now faced with the challenge of rebuilding trust and addressing safety concerns to resume deliveries to China successfully. # Boeing's Ongoing Challenges
Boeing, the renowned aerospace company, continues to face mounting problems on multiple fronts. The Federal Aviation Administration (FAA) has extended the grounding of the MAX 9 aircraft and expressed the need for more data before allowing it back into service. Consequently, Alaska Airlines and United Airlines have been forced to cancel approximately 20% and 7% of their daily flights respectively due to this grounding.
However, the FAA's involvement does not end with the grounding decision. On Friday, the regulatory body announced an increase in oversight of Boeing's production and manufacturing operations. This move came in response to an investigation into the company initiated following an incident involving an Alaska Airlines flight.
In terms of financial impact, Boeing's stock has experienced a significant decline of 16.5% in the year 2024. Meanwhile, its European competitor Airbus has witnessed a contrasting upturn with a 6% increase. Additionally, Alaska Air's stocks have plummeted by 10%, and United's stocks are 3.6% lower compared to the beginning of the year.
As of now, Boeing has chosen not to provide a comment, while China Southern Airlines has yet to respond to requests for a statement.
