Just now, Boeing, with a market value of over 150 billion US dollars (equivalent to over 1 trillion yuan in Chinese yuan), fell more than 9% before the US stock market closed. As of the time of publication, the stock price still fell by over 8%.
On the afternoon of January 8th, Boeing's stock price fell 7.5% in early trading on Tradegate Exchange in Germany compared to last Friday's close.
On the news side, the Federal Aviation Administration of the United States has issued an order requiring all Boeing 737 MAX 9 aircraft operated by or within the United States to be temporarily grounded and undergo safety checks.
Why was the Boeing 737 MAX 9 grounded? How significant is the impact? Let's take a look at the details together:
Sudden cabin explosion after takeoff
171 planes grounded
According to the Associated Press, on the evening of January 5th, a Boeing 737 MAX 9 operated by Alaska Airlines exploded shortly after taking off 3 miles above Oregon, destroying a window and part of the fuselage, creating a large hole that forced the pilot to make an emergency landing. 174 passengers and 6 crew members returned wearing oxygen masks.
Subsequently, the plane safely returned to Portland International Airport about 20 minutes after takeoff, and no one was seriously injured. On January 7th local time, the Federal Aviation Administration of the United States issued a statement stating that 171 Boeing 737 MAX 9 aircraft that had been grounded on Saturday will continue to be grounded until the agency confirms that the aircraft is in a safe state.
In addition, some non US airlines, such as Panama Airlines and Mexico Airlines, have also announced that they will temporarily suspend 737 MAX 9 aircraft for necessary inspections.
Boeing expressed support for the above decision, stating that safety remains its "top priority". The executives of this aircraft manufacturer maintain close contact with the affected airlines over the weekend. The company hopes to ensure to customers and investors that the issue has been brought under control. Boeing will hold an online live broadcast on Tuesday to discuss its response to the security incident.
It is understood that the global sales volume of Boeing 737MAX9 passenger aircraft has so far reached 218, most of which are in service with Alaska Airlines and United Airlines, and a few are operated by Icelandic Airlines, Türkiye Airlines, etc.
Zhongfang is closely monitoring the latest developments
According to reports, the aircraft involved in the Alaska Airlines accident was the 737 MAX 9, an extended version of the 737 Max 8.
In recent years, two fatal plane crashes caused by the 737 Max 8 have led to the grounding of the 737 Max aircraft worldwide.
In October 2018 and March 2019, there were air accidents on the flights of Lion Air Indonesia and Ethiopian Airlines, resulting in a total of 346 deaths. The planes involved in the accidents were both Boeing 737 MAX 8 aircraft. The Boeing 737 MAX aircraft was subsequently grounded in multiple countries and regions around the world for nearly two years. Since the grounding of relevant aircraft models in March 2019, Boeing's stock price has fallen by more than 40%, while Airbus's stock price has risen by 25%.
According to foreign media reports, it was a series of issues with the 737 MAX model that led to a comprehensive reform of aircraft regulation in the United States in 2020. Now, the "high-altitude hatch drop incident" may prompt regulatory agencies to take a stronger stance on Boeing's other issues. Reuters also cited sources as saying that in addition to domestic regulatory agencies in the United States, China is closely monitoring the latest developments in this incident.
It is understood that currently, airlines in mainland China have not taken over the 737 MAX 9 aircraft, and the 737 MAX 8 aircraft was previously grounded in China. However, if this accident causes China to delay receiving the new delivery of Boeing 737 Max, it will also have a significant impact on Boeing.
China is an important market for Boeing. Reuters reported in January 2020 that the grounding of the 737 MAX had an impact on Boeing's overall performance in 2019, leading to a reversal of its ranking in aircraft delivery compared to its competitor Airbus. Last July, China's three major aviation groups (China Southern Airlines, Air China, and China Eastern Airlines) ordered 292 aerial passenger planes in one go, which was believed to have caused a huge impact on Boeing.
However, with the approval of the Civil Aviation Administration of China for Boeing 737MAX to go around in early 2023, Boeing's stock began to rise continuously.