Boeing Under Pressure: A-Level Business in the News

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What's the story?

Boeing is facing renewed scrutiny from regulators and airlines over safety issues with its 737 MAX aircraft after an Alaska Airlines 737 MAX 9 suffered a mid-air blowout. The FAA has grounded dozens of 737 MAX 9 jets, raising concerns over a potentially lengthy grounding like what happened with the 737 MAX in 2019 following two fatal crashes.

Boeing shares dropped 8% amid worries over airline customer confidence in the jet. The 737 MAX 9 is the latest model in the popular 737 family and Boeing was planning to ramp up production. This could now be jeopardized if airlines lose faith in the aircraft, potentially benefiting rival Airbus.

However, Airbus has a huge backlog and may not be able to accommodate new orders. The incident on Friday involved a narrow component failure but follows other recent quality control issues with Boeing's suppliers.

There are also concerns over how pilots will react to the disturbing images from Friday's incident. Boeing faces a big challenge convincing airlines it has safety under control and has not been cutting corners.

Boeing under pressure to assure safety after new 737 quality issues emerge