Categories
Markets

Boeing Stock Price Falls on Engine Failure in 777-Model Jet.

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 remain scarred by the near two year saga that 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, still feels a bit of odd. Boeing does not make or perhaps keep the engines. The 777 that 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 when 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 ongoing, we recommended suspending operations of the sixty nine in-service and fifty nine in-storage 777s driven by Pratt & Whitney 4000-112 engines until the FAA identifies the proper inspection protocol, reads a statement from Boeing available Sunday.

Whitney and Pratt have also put out a quick statement which reads, in part: Whitney and Pratt 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 did not immediately respond to an additional request for comment about engine-maintenance strategies or possible causes 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 an abundance of caution adding the airline is working closely with aviation authorities.

After the accident, the Japan Civil Aviation Bureau as well as 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 correct 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 the culture of ours in aviation safety (that) need to be addressed.

Raytheon stock was down aproximatelly two % in premarket trading. United Airlines shares, nonetheless, are up about 1.5 % according to FintechZoom.

Boeing Stock Price Falls on Engine Problem in 777 Model Jet.
Boeing Stock Price Falls on Motor Failure in 777 Model Jet.

S&P 500 and Dow Jones Industrial Average futures have been 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 almost fifty % 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.

Leave a Reply

Your email address will not be published. Required fields are marked *