Proactive Investors - Boeing Co (NYSE:BA, ETR:BCO) shares dropped 3.5% on Monday after it was revealed that US prosecutors had opened a criminal investigation after the fuselage of a 737 MAX blew out mid-flight back in January.
The Department of Justice has begun interviewing passengers and crew from the January 5 Alaska Airlines flight as part of the probe, reports revealed.
Alaska Airlines said it was cooperating with the investigation and doesn’t believe it is the target, adding that “in an event like this, it’s normal for the DOJ to be conducting an investigation.”
Boeing declined to comment.
The US-listed aircraft maker has come under flak over the safety of its planes, with the Boeing 737 MAX having been involved in fatal crashes in both 2018 and 2019.
As part of the DOJ’s probe, experts will establish whether Boeing has kept in compliance with the terms of its US$2.5 billion settlement relating to the two crashes.
It comes after the US Federal Aviation Administration said it found “non-compliance issues in Boeing’s manufacturing process control, parts handling and storage, and product control.”
Over the weekend, 50 passengers on board a Boeing aircraft were injured after it suffered a technical issue causing a sudden loss in altitude.
Chilean airline LATAM was using a Boeing 787-9 aircraft on a flight from Sydney to Auckland when the issue occurred.
Initial reports claimed the technical fault caused “strong movement” on the plane and resulted in an immediate loss of altitude.