Boeing Stock Price Falls on Engine Failure in 777 Model Jet.
Skittish investors simply won’t give Boeing the gain of the doubt.
Boeing (ticker: BA) stock was down about 3 % in premarket trading after an engine failure on a United Airlines 777 jet. Investors remain 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 response in Boeing stock, if understandable, also feels a bit of unusual. Boeing does not make or perhaps maintain the engines. The 777 which experienced the failure had Whitney and Pratt 4000-112 engines. Pratt is a division of Raytheon Technologies (RTX).
The flight in question, United 328, was leaving Denver for Hawaii if the right engine suffered an uncontained failure. Engine parts left their housing, the nacelle, and hit the ground. Fortunately, the plane made it back to the airport without having 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 actually ongoing, we recommended suspending operations of the 69 in service and 59 in storage 777s operated by Whitney and Pratt 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 which reads, in part: Pratt & Whitney is actively coordinating with operators and regulators to support the revised inspection interval of the Pratt & Whitney PW4000 engines that power Boeing 777 aircraft.
Raytheon didn’t immediately respond to an additional request for comment about engine-maintenance strategies or possible reasons of the failure. United Airlines told Barron’s in an emailed statement it had grounded twenty four of its 777 jets with the similar 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 also 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 two 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 is another instance of cracks in our culture in aviation safety (that) need to be addressed.
Raytheon stock was down about 2 % in premarket trading. United Airlines shares, however, are up aproximatelly 1.5 % according to FintechZoom.
S&P 500 and Dow Jones Industrial Average futures had been down about 0.5 % and 0.7 %, respectively, on Monday morning.
Boeing shares are up about 2 % year to date, but shares are down almost 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.
