Claman Countdown panelists John Lynch and Sheila Kahyaoglu react to the door explosion of an Alaska Airlines Boeing plane mid-flight.
incident involving Boeing 737 MAX9 The accident in which a plug door was blown off in mid-air over the weekend is the latest incident involving the 737 MAX, which plays an important role for the company, but one of many since it was introduced as a successor to the 737 Next Generation 6. I have faced setbacks. And half a year ago.
In the latest incident, a plug door panel covering an additional emergency exit that can only be operated on maximum-capacity planes was found on an Alaska Airlines flight that had departed from Portland, Oregon, and was climbing to cruising altitude at 16,000 feet for Ontario. blown away. , California. The missing panel depressurized the cabin and the plane returned safely to Portland with no serious injuries reported.
Alaska Airlines and United Airlines, two U.S. airlines that use the 737 MAX 9, have been ordered to inspect the aircraft while the Federal Aviation Administration (FAA) and National Transportation Safety Board investigate the incident. Flights were grounded, resulting in hundreds of deaths. flight being canceled. MAX 9, which was involved in the incident, was prohibited from entering. long flight over waterafter Alaska Airlines reported a pressurization alert on a previous flight to Hawaii, among others.
The incident sent Boeing's stock price down more than 8% during Monday trading, to its lowest point in a month. Despite the concerns caused by the latest 737 MAX disaster, the aircraft will continue to be a core part of Boeing's business.
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The Boeing 737 MAX is a key part of the airline's airliner portfolio, but the incident is a new headache for the Seattle-based company. ((Photo by: Stephen Brasear/Getty Images) / Getty Images)
Sheila Kahyaoglu, senior equity research analyst at Jefferies, said this on Monday's FOX Business show. “Craman Countdown” She said her company maintains a buy rating on Boeing despite the incident and outlined the importance of the 737 MAX to Boeing.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BA | boeing company | 229.01 | -19.96 | -8.02% |
“Despite the MAX incident over the weekend, we maintain a buy rating on Boeing,” Kahyaoglu told guest host Ashley Webster. “The MAX is very important to Boeing and has a free cash flow profile of $10 billion by 2025-2026. How important is it? Well, it contributes about 30% of revenue and , MAX estimates that each MAX delivered by Boeing is approximately $10 million in free cash.''Flows per aircraft are estimated to be approximately $3 billion in 2023 and $5 billion in 2024. . ”
Kahyaoglu added that the MAX is “very important. I don't think it will change our financial position. I don't think it will affect production increases for the time being.”
National Transportation Safety Board investigator John Lovell is examining the fuselage plug of Alaska Airlines Flight 1282, a Boeing 737-9 MAX. (NTSB/FOX News)
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What other problems does the 737 MAX have?
The Boeing 737 MAX suffered two fatal accidents shortly after its introduction. In October 2018, a Lion Air Max plane crashed in Indonesia, killing all 189 people on board. Then, an Ethiopian Airlines MAX plane crashed, killing all 157 people on board.
Following the crash, the FAA and several of its international agencies grounded the MAX and reviewed the aircraft's safety. The move forced Boeing to cut production in the spring of 2019, and that summer it posted its biggest quarterly loss ever.
Boeing fired several executives, including its CEO, in the wake of the crash. After suspending production in early 2020, aircraft manufacturers have resumed low-rate production and regulatory testing of redesigned aircraft. The House investigation found that Boeing failed to design and develop the MAX, was not transparent with the FAA, and that the FAA was negligent in its oversight and certification process.
Boeing 737 MAX 9 flight canceled for inspection in Alaska, USA
In the latest accident involving the plane, the plug door of an Alaska Airlines Boeing 737 MAX 9 jet flying from Portland, Oregon, to Ontario, California, was blown out. (Photographer: David Ryder/Bloomberg via Getty Images / Getty Images)
In November 2020, the FAA lifted the grounding order for the 737 MAX and allowed it to resume flying, and a month later Congress approved FAA certification for the new aircraft, including enhanced disclosure of safety information from manufacturers to the FAA. Passed legislation to reform the process. The EU has given permission for the 737 MAX to return to service in January 2021.
Boeing had to halt deliveries of the 737 MAX in April 2021 after some aircraft were grounded again due to electrical issues. Some 737 MAX deliveries were suspended in April 2023 to address new supplier quality issues involving non-compliant fittings, and in July first deliveries of the 737 MAX 7 were delayed to 2024. .
In August 2024, Boeing identified a new supplier quality issue involving an improperly drilled hole in the aft pressure bulkhead.
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In late December 2023, before the latest incident, Boeing and the FAA sent the following warning to 737 MAX operators: inspect their aircraft Because the bolts may be loose and affect the rudder control system.
During an inspection of the grounded 737 MAX 9, United Airlines reported Loose bolts were found on some aircraft.
Reuters contributed to this report.
