Boeing Inc. (BA) shares took a tumble on Wednesday, closing down 2.70% at $152.04, after its striking machinists rejected a labor offer. This rejection throws a wrench into Boeing’s operations, potentially leading to prolonged negotiations and further disruptions.
Adding to Boeing’s woes, the U.S. National Transportation Safety Board (NTSB) issued urgent safety recommendations concerning the rudder control system on Boeing 737 airplanes. The NTSB has identified a potential safety hazard in the rudder control components used on these aircraft, affecting over 40 foreign operators.
The NTSB’s concerns stem from a February incident involving a United Airlines flight, where a similar issue arose. The board also revealed that two foreign operators experienced similar problems back in 2019.
NTSB Chair Jennifer Homendy expressed serious concerns that numerous airlines might be unaware of these potentially problematic actuators on their aircraft. The safety board urged immediate action from the Federal Aviation Administration (FAA) and the affected operators. This news further adds to the pressure on Boeing, highlighting the urgency of addressing these safety concerns.
These developments paint a challenging picture for Boeing. Not only are they facing potential labor unrest, but they also need to address serious safety concerns related to their 737 aircraft. The combination of these issues could significantly impact Boeing’s operations and financial performance in the coming months.
