But even if we narrowly avoided disaster, the bill risks being tough again for Boeing, whose 737 Max model has already suffered two fatal crashes in 2018 and 2019. As a reminder, the two accidents happened a few months apart. 338 people died in Indonesia and Ethiopia. At the time, all Boeing 737 Max aircraft were grounded worldwide for several months. Boeing also stopped production of its latest addition in January 2020. The industrial disaster caused the company an estimated loss of several billion dollars and a significant drop in its sales to the advantage of its rival, Airbus.
Will Boeing relive the same dream after this Sunday's tragic incident in Portland? As expected, the US manufacturer's shares fell sharply at the start of the New York Stock Exchange session on Monday, losing 9% in early trade. At the time of writing, Boeing has already lost more than $12.5 billion in market capitalization.
The impact is limited to the United States
As a reminder, US regulators have temporarily grounded 171 Boeing 737 Max-9s for safety checks. Outside the United States, the impact is less severe. Turkish Airlines has withdrawn five of its 737 Max-9 planes from service for inspection, as does Panamanian company Copa Airlines, which wants to check all 21 of its planes before returning them to service. About 215 Boeing 737 Max-9s are in service worldwide, according to aviation analytics firm Sirium. Of those, only 171 aircraft were fitted with a plug door that exploded during flight. In Europe, the European Union Aviation Safety Agency (EASA) reported that no European airline operates Max-9s in a configuration under FAA mandate. Ditto the British Civil Aviation Authority (CAA) announced that there were no Max-9s registered in the United Kingdom.
Boeing risks dragging down the US industry. In pre-market trading, Alaska Airlines fell 4.7% after having to cancel nearly 200 flights, while United Airlines lost 3% and low-cost carrier Southwest lost 2.2%. Another company to take a hit is Spirit Aerosystems, which fell 16% before the New York Stock Exchange opened. The supplier manufactured and installed part of the 737 Max-9 fuselage affected by the explosion, although Boeing is also believed to play a key role in the process. Since the plane's door was discovered in a private garden, an investigation by US officials should shed light on this monumental failure. Spirit Aerosystems isn't having its first hiccup: The company has already run into problems with its parts production line for Boeing commercial jets.
Flying door on Boeing 727 Max: Black streak continues?
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