FAA Orders Reinspection of 40 Jets, Grounding 171 Boeing 737 MAX 9 Aircraft

Summary

The Federal Aviation Administration (FAA) announced that 40 jets require reinspection before it will consider reinstating the 171 grounded aircraft with the same panel. Multiple airlines are being impacted by this latest incident, with some like Alaska Airlines grounding all of their Boeing 737 MAX 9 planes, resulting in hundreds of flight cancellations. Airlines that don’t have the affected panel, like Icelandair, Corendon Dutch Airlines and Air Tanzania, are unaffected. Several aviation authorities worldwide have started investigations into the issue.

Focused Inspection by FAA

The Federal Aviation Administration (FAA) has mentioned that 40 jets must undergo additional inspection before considering reinstating the 171 grounded aircraft with the respective panel back in service.

Implications for Airlines and Regulators

Regulators and airlines are effectuating changes following the most recent incident. Airlines that are affected include Alaska Airlines, which grounded all of its 65 Boeing 737 MAX 9 aeroplanes, resulting in hundreds of flight cancellations. The airline released a statement on Jan. 8 stating that initial reports from technicians indicated some “loose hardware” was visible on certain aircraft in the respective area.

On the other hand, airlines that lack the affected panel such as Icelandair, FlyDubai, Corendon Dutch Airlines, and Air Tanzania have not been impacted by this issue.

Efforts by Regulators

The FAA has intensified its oversight of Boeing, launching a formal investigation into the MAX 9. The U.S. National Transportation Safety Board (NTSB) and investigators from the International Associations of Machinists and Aerospace workers (IAM) are also probing the incident. Aviation regulators in other countries like Brazil, Britain, China, and the European Union have also initiated their responses.

The impact on Forex and Trading

The ongoing investigations and groundings may impact the stock value of Boeing, as well as other related entities in the aviation industry. Investors and traders are advised to keep a close watch on these developments, which may lead to volatility in the respective markets.

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