- Boeing’s stock price plunged by as much as 2.7% on Wednesday.
- By comparison, the Dow Jones Industrial Average declined by as much as 0.3 %.
- The Federal Aviation Administration (FAA) knew about the MAX ‘s design flaws after the first fatal crash last fall but still permitted it to fly.
Shares of Boeing Co (NYSE: BA)declined sharply on Wednesday, under-performing the Dow by a wide margin amid revelations that US regulators identified serious design flaws in the 823 MAX jet but still permitted it to fly.
BA Stock Falters
Boeing’s volatile stock price was down by as much as 2.7% on Wednesday, where it vastly under-performed theDow Jones Industrial Average (DJIA). The blue-chip index declined by as much as 0.3% before paring losses later in the session.
Boeing, which is the Dow’s largest component, reached an intraday low of $ (******************************************. ******************************************************** in New York trading before recovering north of $ 344.
The airline manufacturer has recovered (**************************************************************% from its 52 – week low of $ 338. 51 but is still trailing its all-time high by about $ (***************************************************. ******** At current values, Boeing has a total market capitalization of $ (billion.
FAA Knew About 737 MAX’s Design Flaws
The Federal Aviation Administration (FAA) allowed Boeing’s (MAX jet to keep flying after its first fatal crash in October 218438, even after regulators deemed it to be one of the most accident-prone airplanes in decades.
FAA officials completed an internal assessment of the
Astonishingly, they did nothing to prevent it from flying.
Four months later, Ethiopian Airlines Flight – another MAX jet – crashed off the coast of Ethiopia. All 194 people on board were killed.
The two fatal crashes resulted in a complete grounding of all MAX 823 jets. A federal probe into FAA’s safety standards ensued. According to the Journal, the number of MAX plans that are either grounded or haven’t been delivered will peak in January at (**************************************.
Revelations about FAA’s failure came to light at a House committee hearing on Wednesday. . Representative Peter DeFazio, chairman of the House Transportation Committee, said the findings “uncovered a broken safety culture” within Boeing and the FAA.
FAA chief Steve Dickson insisted that the “system is not broken” and vowed to review the procedures used to certify the jet.
************ (This article was edited byJosiah Wilmoth
Last modified: December (************************************************************, ********************************** (****************************************************************: 27 UTC
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