Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Boeing production issue prompts airlines to pull some 737 MAX jets from service

Published 2021-04-09, 07:16 a/m
Updated 2021-04-09, 01:12 p/m
© Reuters. FILE PHOTO: A Boeing 737 MAX airplane lands after a test flight at Boeing Field in Seattle

© Reuters. FILE PHOTO: A Boeing 737 MAX airplane lands after a test flight at Boeing Field in Seattle

By David Shepardson and Tracy Rucinski

WASHINGTON (Reuters) - Airlines suspended the use of dozens of 737 MAX jets on Friday after Boeing (NYSE:BA) Co warned them of a possible electrical fault in the production of some planes.

The glitch is the latest problem to beset the U.S. planemaker's most-sold model but is not related to cockpit safety issues that led to an almost two year grounding, lifted five months ago. The grounding followed two crashes that killed 346 people.

Boeing told airlines that repairs for each plane could take a matter of hours or a few days, according to a notification seen by Reuters.

The top three U.S. 737 MAX operators - Southwest Airlines (NYSE:LUV), American Airlines (NASDAQ:AAL) and United Airlines - said they had removed more than 60 jets from service following the notice from Boeing.

The issue affects about 90 planes globally, sources briefed on the matter said.

The chief operating officer of American Airlines, which said the issue affected 17 of its most recently delivered 737 MAX aircraft, told employees that Boeing has traced the issue to a production change made in the installation process.

"(This) occurred after our last aircraft was delivered before the fleet grounding in March 2019," David Seymour said in the memo seen by Reuters.

The status of Boeing deliveries was not immediately clear, with one source saying they too could be disrupted by the new checks.

"Because the problem is understood and the fix looks relatively straightforward, it's unlikely to be a show stopper, although it's unclear if it might have any impact on the expected MAX delivery ramp," Cowen analyst Cai von Rumohr wrote in a note.

Boeing shares were down 1.8% in Friday trading.

The U.S. Federal Aviation Administration (FAA) said Boeing had notified it late Thursday of its recommendation to temporarily remove some planes from service to address a manufacturing issue that could affect the operation of a backup power control unit.

The FAA said it was in contact with the airlines and the manufacturer, and would ensure the issue was addressed.

Boeing said in a statement that it wants 16 MAX operators to check and verify that a "sufficient ground path" exists for a component of the electrical power system.

© Reuters. FILE PHOTO: A Boeing 737 MAX airplane lands after a test flight at Boeing Field in Seattle

Southwest, the largest 737 MAX operator, said it was swapping out 30 of its 58 planes but did not expect a major disruption to its operations.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.