Boeing hosts emergency meeting after Alaska Air incident

Once again, Boeing  (BA) - Get Free Report is all over the news.

"Boeing Max 9 accident sends it reputation into a tailspin," one headline says.

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"A terrifying 10 minute flight adds to years of Boeing’s quality control problems," reads another. 

Still another tells readers that "Boeing's reputation takes another hit with 737 Max 9 accident."

The grim reports follow a Jan. 6 incident where a door plug blew out on an Alaska Airlines  (ALK) - Get Free Report flight when the plane was flying at 16,000 feet.

The plane, a Boeing 737 Max, was forced to make an emergency landing and no one was seriously injured.

The door plug is a piece of fuselage, with a window, that fills the space where an emergency exit would be in certain configurations.

The aircraft had only been in service for about three months and made around 150 flights since October 2023, according to the Federal Aviation Administration.

Harrowing accounts from passengers

The FAA has ordered Boeing 737 Max 9 aircraft to be temporarily grounded as regulators and Boeing investigate the cause of the incident. The order affects roughly 171 jets around the world.

"As operators conduct the required inspections, we are staying in close contact with them and will help address any and all findings," Boeing said in a Jan. 8 statement. "We are committed to ensuring every Boeing airplane meets design specifications and the highest safety and quality standards. We regret the impact this has had on our customers and their passengers.”

Safety inspectors at Alaska Airlines and United Airlines  (UAL) - Get Free Report found loose bolts on some grounded 737 Max jetliners.

“Any findings will be fully addressed in a matter that satisfies our safety standards and FAA compliance," Alaska Airlines said.

United said it had "found instances that appear to relate to installation issues in the door plug — for example, bolts that needed additional tightening." 

"These findings will be remedied by our Tech Ops team to safely return the aircraft to service." the air carrier said.

News accounts described how terrified passengers looked in disbelief as a the door plug fell off in midair and the wind came roaring into the plane, where a mother had to hold on to her son to keep him from being sucked out of the aircraft.

How did this happen? 

How did the company founded in 1916 by William E. Boeing, who once said, "science and hard work can lick what appear to be insurmountable difficulties," become the butt of jokes from late night talk show hosts?

Now Boeing executives are hosting an emergency meeting on Jan. 9 in response to the Alaska Airlines incident.

Company's top seller

The company-wide “Safety Webcast” will be hosted by CEO Dave Calhoun and other Boeing senior leaders from the company’s Renton, Wash., factory, where it produces 737 Max jets, CNN reported.

"While we’ve made progress in strengthening our safety management and quality control systems and processes in the last few years, situations like this are a reminder that we must remain focused on continuing to improve every day," Calhoun said in a memo to employees.

The 737 Max is Boeing’s top-selling product, according to the Financial Times, with the family of jetliners accounting for about three-quarters of its commercial orders.

The fleet could bring in nearly $27 billion in sales this year, about 28% of forecast Boeing group sales, the publication said, said Melius Research.

The Max 9 is the only variant that allows for a plugged door and accounts for a small portion of 737 revenue. Of the 4,526 outstanding orders for 737 planes, only 103 are for the Max 9.

Boeing’s reputation suffered serious blows in 2018 and 2019 when two Max 8 crashes resulted in the deaths of hundreds and billions in losses for the company. 

Over 50 countries temporarily grounded the Max 8s. The FAA lifted the grounding order in November 2020.

Shares of the aerospace giant closed down 8% on Monday and were off 1.32% at last check.

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