Why Boeing Shares Are Down Today
A U.S. government watchdog is going to audit the Federal Aviation Administration's (FAA) oversight of Boeing (NYSE: BA) manufacturing, a fresh reminder that the dark clouds that have been hanging over the aerospace giant for years have not yet receded. On a down day for markets the news was enough to cause a 5% decline in Boeing's share price Thursday morning.
Boeing has been trying to rebuild its reputation and normalize plane production for nearly four years now. The company's troubles began in late 2018 when one of its new 737 MAX planes crashed, and accelerated a few months later after a second crash led to the grounding of the plane.
The plane would remain grounded for 18 months, and the subsequent investigation led to a lot of embarrassing questions being asked about Boeing's safety culture and the FAA's lack of oversight. In response the FAA has increased its scrutiny, and fresh probes into other Boeing platforms have led to 787 Dreamliner delivery delays and a multiyear delay in Boeing launching a new version of its 777.
Source Fool.com
