Boeing Shares Fall 8% After FAA Grounds Max 9 Aircraft

Following an order by the U.S. Federal Aviation Administration to temporarily halt multiple Boeing (BA.N) 737 MAX 9 aircraft, Boeing shares, which were listed in Frankfurt and in pre-market trading in the United States, plummeted by about 8% early on Monday.

On Friday, after departure from Portland, Oregon, an Alaska Airlines aircraft had a piece of its fuselage ripped off, requiring the pilots to make an emergency landing.

An investigation into the reason behind the Alaska Airlines aircraft blowout has been initiated by the National Transportation Safety Board.

Airbus (AIR.PA), a rival of Boeing, has grown its market share following the two Boeing MAX disasters in 2018 and 2019 that resulted in over 350 fatalities and a 20-month global suspension of the MAX.

Early on Monday, Airbus shares were up over 1%. According to industry insiders, the business is scheduled to reveal this week that it delivered 735 aircraft in the previous year, surpassing Boeing to hold the title of largest aircraft manufacturer globally for a record five years running.

It was reported that the figure is expected to surpass the company’s aim of 720 and reach the mid-730s.

According to industry sources last month, Airbus is also on track to surpass industry records for gross and net orders. Airbus has refrained from commenting on its yearly performance before releasing a commercial report on January 11.

Ozioma Samuel-Ugwuezi

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