Boeing Stock Price Falls on Engine Failure in 777-Model Jet.
Skittish investors just 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 continue to be scarred by the near-two year saga which grounded the 737-MAX jet, therefore they sell Boeing shares on any hints of safety trouble.
The response in Boeing stock, if understandable, still feels a little odd. Boeing does not make or even maintain the engines. The 777 that experienced the failure had Pratt & Whitney 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, as well as hit the ground. Fortunately, the plane made it again 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. Even though the NTSB investigation is ongoing, we recommended suspending operations of the 69 in service and fifty nine in-storage 777s powered by Whitney and Pratt 4000 112 engines until the FAA identifies the proper inspection protocol, reads a statement from Boeing out Sunday.
Pratt & Whitney have also put out a brief statement which reads, in part: Whitney and Pratt is definitely coordinating with operators and regulators 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 practices or possible triggers 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 and the Federal Aviation Administration suspended operations of 777 jets powered by Pratt & Whitney 4000 112 engines. Boeing supports the move, which feels like the correct 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’s another instance of cracks in the culture of ours in aviation safety (that) need to be addressed.
Raytheon stock was down about 2 % in premarket trading. United Airlines shares, nevertheless, are up about 1.5 % according to FintechZoom.
S&P 500 and Dow Jones Industrial Average futures have been down aproximatelly 0.5 % and 0.7 %, respectively, on Monday morning.
Boeing shares are actually up about two % year to date, but shares are down nearly fifty % since early March 2019, when a second 737 MAX crash in a situation 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.
