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The Boeing Company (NYSE:BA) shares are trading lower premarket today. On Wednesday, the head of the National Transportation Safety Board (NTSB) stated that the mid-air emergency involving Alaska Air Group, Inc. (NYSE:ALK) Boeing 737 MAX 9 was entirely avoidable, as Boeing should have addressed unauthorized production work earlier.
NTSB Chair Jennifer Homendy told reporters, “There have been numerous, numerous Boeing audits, FAA audits, compliance reviews, compliance actions plans, noting a history of an unauthorized work, unauthorized removals,”, reported Reuters.
According to the NTSB, Boeing failed to document the removal and re-installation of the 737 MAX 9 door plug, a metal cover for an unused emergency exit, and does not know which employees were involved. The plug was delivered to Alaska Airlines missing four key bolts.
FAA official Brian Knaup stated at the hearing that the agency has discovered further issues related to unauthorized removals by Boeing.
Knaup added that the FAA has intensified investigations of hotline and whistleblower reports.
He mentioned that the FAA has increased unannounced audits and secured dedicated space for personnel at Boeing’s 737 factory and at supplier Spirit AeroSystems Holdings, Inc. (NYSE:SPR), which Boeing has agreed to acquire.
Read: Over 170 Boeing 737 Max 9s Grounded, As Alaska Air Passengers Recall Terrifying Incident
The FAA said on Wednesday, “We will continue our aggressive oversight of the company and ensure it fixes its systemic production-quality issues,” per the report.
According to the report, the FAA disclosed that it has 16 open enforcement actions against Boeing, with eight initiated since the Alaska Airlines incident.
Yesterday, Boeing disclosed plans to implement design changes aimed at preventing future mid-air cabin panel blowouts.
Recently, the FAA proposed requiring Boeing to conduct maintenance record checks or inspections of some of its 787 Dreamliners after the company reported missing a test on a part of the main landing gear.
Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and First Trust Exchange-Traded Fund First Trust Indxx Aerospace & Defense ETF (NYSE:MISL).
Price Action: BA shares are down 0.58% at $162.30 premarket at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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