Boeing's anticipated rebound seems to have hit a stumbling block early in the new year, as Dave Calhoun, the head of the US aerospace group, once again finds himself dealing with a crisis.
The recent incident involved an unused emergency exit door, known as a door plug, detaching from a Boeing 737 Max 9 plane operated by Alaska Airlines during flight. In response, US regulators swiftly grounded 171 out of the 217 Max 9 fleet, leading to a 7 percent drop in Boeing shares on Monday.
Under Calhoun's leadership, Boeing has been striving to revive the stalled 737 Max program, which faced setbacks following two fatal crashes five years ago. Although the Max resumed flights in late 2020, the crisis significantly tarnished the company's reputation and resulted in substantial financial losses, including damages, government fines, and lost orders. Meanwhile, competitor Airbus has extended its lead in the market for single-aisle aircraft.
Boeing's share price continues to lag, down 50 percent from its pre-crisis peak, and the company, burdened with around $47 billion in long-term debt, has not reported a profit since 2018.
Despite the alarming nature of the recent incident, experts believe it may be attributed to a manufacturing error rather than a design flaw. Boeing is likely to view this as an isolated occurrence, aiming to portray it as a specific issue rather than a widespread problem across the entire fleet.
