Boeing shares fall after probe report into FAA approval of 737 MAX

The company logo and trading informations for Boeing is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, US, March 13, 2019. [Photo: Reuters]
Boeing Co shares fell by more than 2.2 percent early on Monday, after a pair of newspaper reports over the weekend raised more questions about the certification process for its 737 MAX jets before two recent deadly crashes.

A Wall Street Journal report on Sunday said that the US Transportation Department was probing the Federal Aviation Administration’s (FAA) approval of the 737 MAX and in particular its anti-stall (MCAS) system.

The Seattle Times separately reported that Boeing’s safety analysis of a new flight control system on 737 MAX jets had several crucial flaws.

Shares of the company have declined about 10 percent since the March 10 Ethiopian crash that killed 157 people, wiping nearly $25 billion off its market capitalization, according to Refinitiv data.

Ethiopia said on Sunday that the crash of the Ethiopian Airlines plane had “clear similarities” with October’s Lion Air crash.

The US Transportation Department’s inquiry, which was launched in the wake of the accident in October that killed 189 people, has warned two FAA offices to safeguard computer files, the WSJ reported.

Last Monday, Boeing said it would deploy a software upgrade to the 737 MAX 8, hours after the FAA said it would mandate “design changes” in the aircraft by April.

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Boeing sharesFAA approval737 MAX jetsWall Street JournalFederal Aviation Administration