Boeing shares experienced a downturn on Tuesday, falling 3.2 per cent to $US217.76 by 4pm in New York, following the announcement of a wiring flaw discovery on its 737 MAX aircraft. The defect is expected to cause delays in the delivery of some of its narrow-body jets. Boeing is an aerospace company and manufacturer of commercial jetliners, defence, space and security systems. The company provides services to airlines and other operators.
Despite the quality lapse, which was disclosed alongside Boeing’s monthly orders and deliveries report, the US plane maker maintains its overall delivery target of approximately 500 of the 737 jets for the year. A Boeing spokeswoman stated that the 737 program is currently performing rework on a group of aeroplanes to rectify wires with minor scratches resulting from a machining error.
The company aims to ensure that all aircraft meet quality standards before delivery. Boeing has affirmed that the production of new 737 MAX aeroplanes will continue at the current rate. Although the plane maker did not specify the exact number of affected aircraft, it anticipates that the necessary repairs to the wiring of the undelivered planes will be completed within a few days.
According to Ken Herbert, an analyst at RBC Capital Markets, the wiring issues could present a near-term obstacle for Boeing’s financial results in the first quarter. The company will need to address these issues swiftly to minimise any potential impact on their financials and reputation.
