In the early morning trading session on January 9 (Vietnam time), Boeing's stock fell 8%, thereby weighing on the Dow Jones industrial stock index in the context of US stocks rising strongly thanks to falling US Treasury bond yields.
Boeing shares fell sharply after hundreds of Boeing 737 Max 9 planes were temporarily grounded for safety checks following the incident.
According to CNN, on January 5, an Alaska Airlines Boeing 737 MAX flying from Portland, Oregon (USA) to Ontario, California had to make an emergency landing after an emergency exit door in the middle of the plane's cabin opened while in the air, at an altitude of nearly 5,000m.
Alaska Airlines has announced that it will temporarily ground its 65 Boeing 737 MAX aircraft. The US Federal Aviation Administration (FAA) and the US National Transportation Safety Board (NTSB) have said they have begun an investigation.
According to Reuters, United Airlines discovered that many Boeing 737 MAX 9 planes had loose screws.
Many airlines also stopped operating the Boeing 737 Max-9 after the incident. In addition to Alaska Airlines, there are also United Airlines (USA), Turkish Airlines (Türkiye)... To date, Boeing has delivered more than 200 737 Max-9 aircraft to airlines around the world.
Boeing 737 MAX 9 plane door burst open. (Photo: Reuters).
Previously, in late 2018 and early 2019, two aircraft of this type had consecutive problems, leading to the deaths of hundreds of people. In March 2019, the Boeing 737 MAX narrow-body commercial aircraft was banned from flying worldwide for 20 months. In late 2023, Boeing asked airlines to inspect all 737 MAX aircraft due to the possibility of a loose screw in the rudder system.
Thus, just a few years after being put into operation and expected to be the aircraft line that brings the main revenue and profit for Boeing, the 737 MAX has faced many problems, causing the company to fall into difficulties. The incident of the door opening while flying in the sky has raised further concerns about the safety of this type of aircraft.
After the accidents in Indonesia (October 2018) and Ethiopia (March 2019) in early June 2019, on CNN, Boeing admitted that some 737 aircraft models may have faulty components in the wings, in addition to the previously confirmed software error.
US aircraft giant threatened by Europe and China
The recent 737 MAX crashes have significantly damaged Boeing's reputation. The MAX is a very important program for Boeing in the new decade and is estimated to account for over 60% of the US giant's production by 2032.
The Boeing 737 MAX is the new generation of the 737 series. This is a direct competitor to the A320neo series of European rival Airbus. This is also a series with orders of up to thousands of aircraft, expected to bring huge profits to Boeing.
The latest incident is sure to bring closer scrutiny to Boeing, which has struggled for years to fix a series of quality problems. Boeing has spent a long time convincing and reassuring airlines, investors, and others about its supply chain and efforts to address quality issues.
Not only worried about rival Airbus, Boeing also faces competition from China.
In late May 2023, the “Made in China” C919 aircraft of the Commercial Aircraft Corporation of China (Comac) officially took its first commercial flight with “many modern technologies”. The C919 competes with the single-aisle Boeing 737 and Airbus A320, which are the mainstays of the global aviation industry.
The launch of the C919 marks the beginning of a challenge to Boeing and Airbus.
In a complex geopolitical context, many countries may consider the C919 as a new option. Comac said it has received thousands of orders for the C919. Beijing aims for the C919 to have a 10% domestic market share by 2025.
However, according to many experts, it will take China many more years to see success if this aircraft operates effectively and safely.
Boeing and Airbus still dominate the global aircraft market. Getting into the aircraft manufacturing business is difficult. Some corporations such as Japan's Mitsubishi and Canada's Bombardier Inc. have failed with their jet aircraft programs.
The C919 is equipped with many of the latest technologies. However, China's Comac still has to import many important parts from abroad, including engines and aircraft systems.
In late 2023, according to the South China Morning Post, Comac increased the price of the C919 aircraft to $108 million per aircraft, higher than the $99 million price in 2022 and more expensive than the Boeing 737 MAX 7 - a version priced at $99.7 million.
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