Boeing (NYSE:BA) is an American multinational that has grown into one of the premier aerospace manufacturers and defense contractors on the planet. Its dominant market share in aerospace manufacturing has given it an air of invincibility among investors and onlookers alike. However, its reputation in this space has been severely hindered due to the performance of its fourth generation MAX airliners.
In 2019, the Boeing 737 MAX was grounded around the world. This occurred after a flight control system was responsible for two new aircraft crashes: Lion Air Flight 610 on October 29, 2018, and Ethiopian Airlines Flight 302 on March 10, 2019. All 346 souls aboard the two flights were killed. Ultimately, Boeing paid over US$2.5 billion in penalties and compensation. Afterward, it committed to a complete redesign of the computer architecture in the MAX 737s.
On January 5, 2024, Alaska Airlines Flight 1282 suffered an uncontrolled decompression shortly after takeoff. This was due to the blow out of a door plug. Fortunately, the plane was able to land safely and there were no fatalities.
Shares of Boeing have plunged 13.5% in 2024 as of close on Monday, January 15. The company has stated that it plans for additional inspections for its 737 MAX planes going forward. It has pledged to place a particular focus on the status of the door plugs on the MAX 9, the model that suffered the accident. As with the 2019 crisis, it will take time for Boeing to regain the trust of consumers.
