Boeing shares fell nearly 3.2% to be the worst performer among members of the Dow Jones Industrial Average.
The disappointing year for Boeing (BA) continues into 2024, recently hitting a new low, with shares plunging more than 25% so far this year, just after the Justice Department began a criminal investigation into issues related to the 737 Max, following a significant incident in January.
Shares devalued nearly 4.4% in New York yesterday, Monday, March 11, their highest intraday since Jan. 25, after the operator of the nearly new 737 Max 9, Alaska Airlines, confirmed over the weekend a Wall Street Journal report about the investigation.
Boeing’s share price fell more than 26% in Monday trading. By losing nearly 26% of its share price, it became the worst performer among members of the Dow Jones Industrial Average. The crisis dogging the U.S. aircraft maker and its best-selling 737 jetliner, which is shrinking after a series of incidents and revelations of factory failures, Boeing is facing increasing scrutiny from lawmakers, regulators and even passengers following the Jan. 5 crash. According to Transportation Secretary Pete Buttigieg, the greatest possible rigor is expected when dealing with Boeing, and certainly when discussing regulatory issues.
The grand jury activity, which generally adds the issuance of subpoenas for documents and interviews, is a demonstration that the investigation against Boeing, and whether the company has criminal liability for the indecency, is deepening. However, it should also be noted that the formation of a grand jury does not necessarily mean that the investigation will result in charges being brought.
In recent days, the department has beenanalyzing and studying if the explosion of the door plug falls within the deferred prosecution agreement that the government signed in 2021 with the company because of two previous fatal actions of its 737 Max aircraft, It has not been immediately clear if the criminal investigation is part of that examination or on the contrary is a separate initiative.
Missing parts
In the Alaska Air incident, the aircraft was found to be missing four bolts that should have prevented the panel covering an unused door opening from flying off, the National Transportation Safety Board found in a preliminary report. All 171 passengers along with six crew members were forced to evacuate the plane without serious injury.
This has caused all the control entities to be much stricter with the company and they have taken the decision to prohibit the company from increasing its production until they have clarity and confirmation that the manufacturing quality has been improved.
In recent times, the aviation company has been involved in a series of accidents that have not helped its share price performance and it is very likely that the shares will continue to devaluate further.
In the most recent accident, on Monday, March 11, 10 passengers and crew of Latam Airlines were hospitalized after the plane experienced unexpected turbulence on the route from Sydney to Auckland.
The airline said the Boeing 787 Dreamliner experienced a ‘technical event during the flight that caused severe movement.The airline did not specify the nature of the technical event. “We are working to gather more information about the flight and will provide any support needed by our customer,” Boeing said in a statement.
