FAA investigates possible Boeing 787 jetliners manufacturing flaws
The U.S. Federal Aviation Administration are investigating manufacturing flaws over some Boeing 787 Dreamliners. Yahoo Finance’s On The Move panel break down the latest developments.
Video Transcript
JULIE HYMAN: We want to talk about what is happening with Boeing now, because the Federal Aviation Administration is investigating manufacturing flaws involving some Boeing 787 Dreamliners. And indeed, Boeing said last month that eight 787s had been removed from service by the airline.
So, the FAA has come out with a statement on this saying, "the Federal Aviation Administration is investigating manufacturing flaws affecting certain Boeing 787 jetliners. The agency continues to engage with Boeing. It is too early to speculate about the nature or extent of any proposed Airworthiness Directives that might arise from the agency's investigation."
Obviously, Boeing is already much beleaguered by what has been going on at that company. I'm just checking the shares here, they're down about 4% in today's session. So, what does this mean then, for Boeing going forward? Is this just sort of insult to injury, so to speak? Akiko, you want to get started on this one?
AKIKO FUJITA: Yeah, I mean, I think it goes back to the conversation we were having pre-COVID, with the MAX planes-- which is really about the culture of the company. I mean, when you look at what's happening with Boeing right now, it does seem like the company just can't catch a break. But that does say a lot about an internal review that's necessary here within the company to see where these production hiccups have come from.
And we're now talking about two separate models here, it's not really just about the MAX jets. And so, I think this is kind of a continuation-- if you're looking from the outside in, it is sort of a continuation of questions around the culture of Boeing and how they approach this is going to say a lot about where the company goes moving forward.
ADAM SHAPIRO: And to add to Akiko's point, I think that if anything, the more optimistic reading of this news here would be that the FAA and Boeing together are being more cautious about any sort of development for new aircraft or any changes to existing aircraft. For example, and this is just simply the FAA and Boeing working together to be precautionary, not that there's any sort of underlying issue here. Now, it would be interesting to see if Boeing at any point in time clarifies exactly what the nature of this, I guess, inquiry, is really all about.
But I think one thing also worth mentioning is that, yes, indeed, the stock is down about 4%. That's a more magnified decrease than what we're seeing in the overall market right now. But we have to remember that it seemed like at least after the first few months after those first aviation crashes with the 737 MAX, it seemed like Boeing's stock was really, after that point, quite numb to any sort of concern that was ongoing about their underlying business.
