Posted in: Business News
Published:
February 3, 2020 9:53 PM UTC

Boeing Stock Tainted by Safety Fears After Air Canada Aborts Flight Over Engine Issues

Boeing's stock extended its slide on Monday amid reports that one of its 767 passenger planes had to make an abrupt landing due to technical issues.

  • Boeing’s stock price was down by as much as 1.1% on Monday, going against the grain of a wider market rally.
  • The Dow Jones Industrial Average rose by as much as 311 points before paring gains.
  • An Air Canada flight operating a Boeing 767 was forced to make an emergency landing in Madrid over technical issues.

Shares of Boeing Co (NYSE:BA) tumbled on Monday after one of its passenger planes was forced to make an emergency landing in Madrid due to engine issues.

Although the emergency landing was described as routine by people familiar with the matter, it continued to attract negative headlines to the troubled airline maker [Global News].

BA Stock Tumbles

Boeing’s stock price tumbled by as much as 1.1% on Monday, reaching an intraday low of $314.90. The Dow blue-chip fell 1.6% on Friday as part of a wider market selloff.

Boeing’s share price lags the broader market on Monday. | Chart: Yahoo Finance

The stock would eventually close down 0.7% at $316.00. At current values, Boeing has a total market capitalization of $178.2 billion.

BA is down 29% from its 52-week high as the drama involving the grounded 737 MAX continues to unfold. In addition to regulatory scrutiny at home, Boeing is being asked by European aviation authorities to overhaul the wiring of its 737 planes. The edict could cost the company billions and rattle its extensive supply chain.

Air Canada Flight Makes Emergency Landing

A Boeing 767-300 airplane operated by Air Canada had to abort its flight shortly after take off Monday due to a technical issue.

The airplane, which took off from Adolfo Suarez Madrid-Barajas airport in Madrid, had to circle back after part of its landing gear fell off and went into one of the engines [Reuters].

In an official statement, Air Canada said:

The aircraft, a Boeing 767-300, is designed to operate on one engine and our pilots are fully trained for this eventuality. Nonetheless, an emergency was declared in order to obtain landing priority. [Reuters]

The Toronto-bound plane was carrying 128 passengers.

The mishap is the latest in a string of controversies involving Boeing’s airplanes. Although the technical issue doesn’t appear to be related to Boeing’s manufacturing guidelines, it has once again brought negative attention to the company.

Air Canada joined its international counterparts in grounding Boeing’s 737 MAX jets last year but was prepared to let the plane resume flying in February [CBC]. The plans were scrapped last month after Canada’s transport agency said Canadian airspace will remain closed to all MAX 737 aircraft.

In a Jan. 23 statement, Air Canada said it,

has grounded its 24 737 MAX aircraft until further notice [Air Canada].

This article was edited by Josiah Wilmoth.

Last modified: February 3, 2020 11:30 PM UTC

Sam Bourgi @hsbourgi

Financial Editor of CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE, Yahoo Finance and Forbes. Sam is based in Ontario, Canada and can be contacted at sam.bourgi@ccn.com

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