The Boeing 737 MAX 9 door falling off incident is intensifying. The company's shares also began to suffer from investor sell-offs. Boeing Co.'s shares, which trade on Germany's Tradegate exchange, fell more than 7 percent on Monday, while U.S. stocks fell more than 8 percent at one point after the open. In addition, Alaska Airlines, which announced the grounding of the aircraft, also fell pre-market. Shares of Airbus, Boeing's main rival, rose slightly.

Boeing's stock price plummeted

During the trading session of the German Tradegate Exchange, Boeing's stock price fell by more than 7.5% at one point. As of press time, the company's stock price fell 7.2%. Meanwhile, Boeing's main rival Airbus rose 2.36%.

Boeing stock price action on the Tradegate exchange

After the U.S. stock market opened, as of press time, Boeing's stock price fell more than 8%. In fact, Boeing's stock price has been stable overall in 2023, rising 36% for the year.

Boeing's 2023 stock price performance

The cause of the matter

On January 5, local time, an Alaska Airlines Boeing 737 MAX 9 passenger plane made an emergency landing shortly after taking off from Portland, Oregon, and a window and part of the fuselage fell. The flight then successfully returned to Portland without any casualties.

After the incident, Alaska Airlines issued a statement on its official social media platform account that the company had decided to temporarily ground 65 Boeing 737 MAX 9 aircraft. The Federal Aviation Administration ordered airlines to ground more than 170 Boeing 737 MAX 9 aircraft. This emergency airworthiness directive will affect approximately 171 aircraft of the relevant type worldwide.

In a statement, the National Transportation Safety Board (NTSB), which investigates domestic aviation, road, rail, waterway and pipeline accidents, described harrowing minutes on an Alaska Airlines flight: First, there was a loud bang that tore through the headrest and seat backs and exploded a hatch. And a school teacher found the bombed-out plane panel in his backyard. Images shared by passengers on social media showed a hole in the side of the plane, as well as oxygen masks used by passengers all over the place.

Several airlines have announced grounding of flights

Most of the Boeing 737 MAX 9 airliners are in service with Alaska Airlines and United, and a few are operated by Icelandair, Turkish Airlines, etc. Chinese mainland airlines do not currently operate this aircraft.

After Alaska Airlines announced the grounding, other airlines operating the 737 MAX 9 also said that they would temporarily suspend the aircraft.

United said it had grounded 46 Boeing 737 MAX 9s and canceled about 60 flights on Jan. 6. Copa Airlines temporarily grounded its 21 Boeing 737 MAX 9 airliners on January 6 and launched a technical inspection of the aircraft, and on January 7, Copa Airlines said that the resumption of flights of the aircraft will be notified separately.

In addition, Turkish Airlines and Aeromexico have also announced the grounding of this aircraft. Indonesia temporarily grounded the Boeing 737 MAX 9 on Jan. 6, the ministry said.

Boeing is once again in the whirlpool

In fact, Boeing is only emerging from the 737 MAX crisis.

According to public information, the Boeing 737 MAX family of aircraft is the latest generation of Boeing's single-aisle narrow-body passenger aircraft, including the Boeing 737 MAX 7, Boeing 737 MAX 8, Boeing 737 MAX 9, Boeing 737 MAX 10 and Boeing 737 MAX 200. The first aircraft rolled off the assembly line on December 8, 2015, and completed its maiden flight on January 29, 2016.

However, in October 2018 and March 2019, a total of 346 people were killed in air crashes on Indonesian Lion Air and Ethiopian Airlines flights, all of which were Boeing 737 MAX 8s. The Boeing 737 MAX was subsequently grounded in several countries and regions around the world for nearly two years.

The 737 MAX 9 was the same aircraft that caused the Alaska Airlines accident this time, which is not the same aircraft as the 737 MAX 8 that had the previous accident.

"Repeated problems with Boeing's family of aircraft have raised questions about quality control of 737 deliveries and the impact of inexperienced labor on Boeing and its supply chain," Bank of America aerospace analyst Ron Epstein wrote in a note. He also added that the aircraft was delivered a few months ago and that "the aircraft still smells of 'new aircraft' and the price is high".

Russ Mould, investment director at AJ Bell, noted Friday's incident was the latest in a "series of questions for the company" and suggested that airlines using the 737 MAX aircraft would be "thinking long and hard about future aircraft needs."

Editor-in-charge: Zhu Yumeng

Proofreading: Su Huanwen

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The aircraft involved was ordered to be grounded, and Boeing's stock price plummeted!
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