TECH - Boeing Shares Tumble After FAA Investigation Fails 33 Out Of 89 Audits | Benzinga
Boeing Co (NYSE:BA) was reported on Tuesday to have failed 33 out of 89 audits carried out by the Federal Aviation Administration following the Alaska Air (NYSE:ALK) incident in January in which a door panel blew out of a 737 Max jet.
Share in Boeing fell 4.2% to $184.40 in midday trade in New York after news of the FAA’s findings broke and the stock closed Tuesday’s session at $184.24.
The regulator’s audits exposed a problem with the door plug that was responsible for the January incident. A concurrent audit of Spirit AeroSystems (NYSE:SPR), which supplies Boeing with fuselages, failed seven of 13 tests, including the installation of cockpit windows.
Shares in Spirit lost 7.78%, closing at $31.77.
The FAA has given both companies 30 days in which to respond and suggest an action plan to deal with the findings.
Also on Tuesday, Boeing reported orders and deliveries for February. The company said orders included four 787-9s for Royal Brunei Airlines, 10 737 Max and one 777 freighter. Deliveries included 17 737 Max, 7 Dreamliners and 27 Jetliners.