Although no wrongdoing has been discovered, the company, which has been working to overcome a recent legacy of production and design issues, is likely to come under scrutiny.
American Aircraft Boeing Faces New Upheaval After Crash of Chinese Airliner
The latest crisis for the American aircraft manufacturer, Boeing, was the crash of a Boeing jet in China on Monday. This puts the company under new regulatory scrutiny and puts it in danger of experiencing another plane-related disaster.
Operated by China Eastern Airlines
Before investigators determine what caused the Boeing 737-800 NG operated by China Eastern Airlines to plunge from the sky with more than 130 people aboard,
it may take weeks or even months. But given that Boeing recently overcame years of issues involving a more recent model of the single-aisle 737, the Max, and has experienced significant delays in producing and delivering the twin-aisle 787 Dreamliner, the investigation’s findings may have a significant impact on the company.
Financial Analysis Firm
A managing director at a financial analysis firm, Rob Spingarn, believes it will be crucial to determine what actually transpired with this particular incident because there is a credibility issue. I believe that until that information is released, the investment community will take a slight break from Boeing.
Many industry analysts and experts were hesitant to draw the conclusion that Monday’s crash revealed any fundamental design flaw because thousands of 737-800 NG aircraft had safely travelled the world in recent decades. However, Boeing’s stock still decreased by 3.6 percent. China Eastern’s stock declined 6.5 percent at the close of Hong Kong trading.
Boeing is a symbol of the aviation era, the largest exporter of manufactured goods from the United States, a blue chip stock, and a significant employer. It ranks among the largest contractors for the federal government. Thanks for reading our article Boeing Faces New Upheaval After Crash of Chinese Airliner. Continue reading and have a good day.