Boeing Stock Price Falls on Engine Failure in 777-Model Jet.
Skittish investors just will not give Boeing the gain of the doubt.
Boeing (ticker: BA) stock was down aproximatelly 3 % in premarket trading after an engine failure on a United Airlines 777 jet. Investors are still scarred by the near-two year saga which grounded the 737-MAX jet, for this reason they sell Boeing shares on any hints of safety trouble.
The reaction in Boeing stock, if understandable, also feels a bit of odd. Boeing does not make or perhaps maintain the engines. The 777 that experienced the failure had Whitney and Pratt 4000 112 engines. Pratt is actually a division of Raytheon Technologies (RTX).
The flight in question, United 328, was leaving Denver for Hawaii when the right engine suffered an uncontained failure. Engine parts left the housing of theirs, the nacelle, and also hit the ground. Fortunately, the plane made it again to the airport without any injuries.
Boeing Stock Price Falls on Engine Failure in 777-Model Jet.
Boeing is actively monitoring recent events related to United Airlines Flight 328. Although the NTSB investigation is ongoing, we recommended suspending operations of the 69 in-service and 59 in storage 777s driven by Pratt & Whitney 4000-112 engines until the FAA identifies the correct inspection protocol, reads a statement from Boeing out Sunday.
Whitney and Pratt have also put out a short statement that reads, in part: Pratt & Whitney is actively coordinating with regulators and operators to allow for the revised inspection interval of the Pratt & Whitney PW4000 engines that power Boeing 777 aircraft.
Raytheon didn’t immediately respond to an extra request for comment about possible reasons or engine maintenance strategies of the failure. United Airlines told Barron’s in an emailed statement it’d grounded 24 of its 777 jets with the related Pratt engine out of a great deal of caution adding the airline is working closely with aviation authorities.
After the accident, the Japan Civil Aviation Bureau and the Federal Aviation Administration suspended operations of 777 jets powered by Whitney and Pratt 4000 112 engines. Boeing supports the move, which feels like the appropriate decision.
Initial FAA findings point to 2 fractured fan blades, wrote Vertical Research Partners aerospace analyst Rob Stallard in a Monday research note, pointing out that former NTSB Chairman Jim Hall said this’s another example of cracks in our culture in aviation safety (that) need to be addressed.
Raytheon stock was down aproximatelly 2 % in premarket trading. United Airlines shares, however, are up about 1.5 % according to FintechZoom.
S&P 500 and Dow Jones Industrial Average futures were down about 0.5 % and 0.7 %, respectively, on Monday morning.
Boeing shares are actually up about two % year to date, but shares are down nearly 50 % since early March 2019, when a second 737 MAX crash in a matter of months led to the worldwide ground of Boeing’s newest model, single aisle aircraft.
Boeing Stock Price Falls on Engine Failure in 777 Model Jet.
