UAL - Boeing 737 Max Planes Return To Sky FAA Stops Company's Planned Expansion: 'One Step Forward Two Steps Back' | Benzinga
Airplane manufacturer The Boeing Company (NYSE:BA) has faced several setbacks related to an incident involving its 737 Max 9 aircraft.
The Federal Aviation Administration (FAA) issued several rulings this week, which were both good and bad for the company.
What Happened: On Wednesday, the FAA announced it would not approve a planned expansion for the 737 Max aircraft from Boeing until quality issues are resolved.
"Let me be clear: This won't be back to business as usual for Boeing," FAA Administrator Mike Whitaker said.
While Boeing suffered that setback, the FAA determined that the 737 Max 9 can return to the skies for companies like United Airlines Holdings (NASDAQ:UAL) and Alaska Air Group Inc (NYSE:ALK).
Moody's said the latest news on Boeing was "one step forward, two steps back."
"The FAA's decision to allow the 737 Max 9 to promptly return to service is a step forward for the Max program; however, the cap on the current production rate is two steps back and decidedly credit negative," Moody's said.
Moody's kept the Baa2 senior unsecured rating and ...