Boeing CEO Says Company Needs To Acknowledge 'Mistake' As 737 Max 9s Remain Grounded
Portfolio Pulse from Erica Kollmann
Boeing CEO David Calhoun has committed to acknowledging the company's mistake and ensuring complete transparency as investigations into a recent incident involving a Boeing 737 Max 9 continue. The FAA has grounded all 737 Max 9 jets, and airlines like Alaska Airlines and United Airlines have found loose parts in their Boeing fleets. Boeing shares closed down 1.41% at $225.76 and have dropped over 10% in the past week.
January 09, 2024 | 10:54 pm
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Boeing's commitment to transparency after the 737 Max 9 incident may help mitigate negative sentiment, but the FAA grounding and reported loose parts in fleets could continue to pressure the stock in the short term.
The recent incident and FAA grounding are directly related to Boeing's core business and reputation. While transparency is a positive step, the immediate impact of the grounding and potential safety concerns are likely to have a negative effect on investor sentiment and the stock price in the short term. The 10% drop over the past week indicates significant market concern.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100