Proactive Investors - Boeing Co (NYSE:BA, ETR:BCO) deliveries to a major Chinese airline may be delayed due to additional safety inspections after a panel blew off an Alaska Airlines Boeing 737 Max 9 plane in midair, The Wall Street Journal reported.
According to the journal, China Southern Airlines was preparing to receive Max jets as early as this month but, along with other Chinese airlines, has been told by China’s aviation regulator to conduct precautionary safety checks on their 737 Max fleets.
The US Federal Aviation Administration (FAA) has opened an investigation into Boeing and said it would audit the 737 Max 9 production line along with Boeing’s suppliers in order “to evaluate Boeing’s compliance with its approved quality procedures.”
The agency also plans to step up its monitoring of 737 Max 9 in-service events and evaluate potential safety risks related to “delegated authority and quality oversight.”
Following the January 5 incident, United Airlines (NASDAQ:UAL) Holdings and Alaska Air each reported loose bolts on Boeing 737 Max 9 planes in inspections.
In 2019, China suspended most orders and deliveries of Boeing planes after the 737 Max was grounded worldwide following two fatal crashes in Indonesia and Ethiopia.
Last November, the aircraft manufacturer was given a boost on reports that a thawing of relations between the US and China could be a catalyst for the block on Boeing being lifted.