Shares of Boeing (BA) are down 9% on news that the U.S. Federal Aviation Administration (FAA) has grounded hundreds of 737 Max 9 aircraft over safety concerns.
The FAA said 171 airplanes worldwide that were manufactured by Boeing are affected by its “emergency airworthiness” directive requiring the aircraft to be inspected before flying again.
The order applies to all U.S. airlines and carriers that operate within America’s borders.
The FAA took the rare action of grounding the Boeing 737 Mas 9 after a piece from the airplane blew off in the middle of an Alaska Airlines flight on Jan. 5.
Images posted to social media showed a hole in the side of the Alaska Airlines plane and passengers wearing oxygen masks.
In addition to the FAA’s grounding order, the U.S. National Transportation Safety Board has launched an investigation into the blowout on the Alaska Airlines flight.
Of the 171 aircraft impacted by the grounding, United Airlines (UAL) owns 79 and Alaska Airlines owns 65. The other 74 aircraft are spread across six additional carriers.
The FAA and other regulators have been watching Boeing closely after two fatal crashes of its aircraft five years ago.
Shares of Boeing’s European rival Airbus SE (AIR) or France are up 2% as investors speculate that it could take market share from Boeing following this latest incident.
Prior to today, Boeing’s stock had gained 20% over the past 12 months to trade at $249 U.S. per share.
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