From Morningstar:

Shares in Boeing fell nearly 9% following the grounding of 171 Boeing 737 MAX-9 aircraft after a door panel flew out midflight on Friday. The FAA ordered the temporary grounding after an incident on Alaska Airlines flight 1282. After the incident, Morningstar industrials analyst Nicolas Owens stated that Boeing is still working out flaws in its 737 and 787 planes.

The incident comes just days after an Airbus A350 operating as Japan Air Lines flight 516 burst into flames after colliding with a coastguard plane last week. Neither event caused loss of life, they did create safety concerns.

Boeing and Airbus investors rely on long-term durability and safety records. The fatal crashes of two Boeing 737 MAX-8 aircraft in 2018 and 2019 brought grave consequences for Boeing. At this point, Boeing is working out flaws in its manufacturing processes for new 737 and 787 jets, and a whole company meeting is expected on Tuesday.

On January 6, the FAA announced 171 Boeing MAX-9 jets must be inspected before they can fly again. The dramatic nature of the flaw will have the effect of once again calling Boeing’s product governance into question by customers, regulators, and the flying public.

Investors in the US markets are now gearing up for a muted session following Boeing’s pressure. Dow Jones Industrial Average futures fell nearly 200 points, amid a sharp fall in China stocks and fears over draconian regulation. This story is being updated as events continue to develop.



Read more: Boeing Shares Slide as Panel Failure Spooks Investors