Boeing Is Back in the Spotlight
Engine Failure Spurs Safety Investigation
Over the weekend, a United Airlines (UAL) flight from Denver to Honolulu landed 25 minutes after takeoff because its right engine failed. No passengers or crew members were injured. The aircraft was a Boeing (BA) 777-200 with an engine manufactured by Pratt & Whitney, a division of Raytheon Technologies (RTX)
Boeing issued an announcement asking airlines to stop flying these planes until further notice. The Federal Aviation Administration is currently in the process of conducting a safety inspection of the aircraft.
Few Airplanes Will Be Impacted by Investigation
There are 127 777s with Pratt & Whitney engines in operation, and United is the only airline in the US using the aircraft. They are also used by Japan Airlines, Korean Air, and other international air carriers.
This plane model is a wide-body aircraft used for long flights. Because demand for international travel has been reduced due to the COVID-19 pandemic, Boeing says many of the 777s were not in service at the time of the engine failure. Though this investigation has caused bad publicity for Boeing, the number of planes and airlines being impacted is fairly small.
The Impact on Boeing, and Other Stocks
Boeing shares are up 2% for the year but were down 1.8% at market close yesterday. Boeing’s stock is down nearly 50% since March 2019, when a second 737 MAX airplane was involved in a fatal crash, and the model was grounded around the world.
Raytheon Technologies stock also dropped since news of the engine failure, though United’s stock has climbed slightly. Investors will be eager to see how the FAA investigation unfolds and what that will mean for these companies.
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