Boeing Shares Slide As FAA Turns Attention To Dreamliner Hydraulic Leakage
Ahead of Boeing CEO Dennis Muilenburg’s first showdown with shareholders since the March 10 crash of Ethiopian Airlines flight 302, the FAA has drawn attention to recent reports about dangerous hydraulic leakages involving the Boeing 787, otherwise known as the ‘Dreamliner’.
The regulator is imposing a new ‘flight directive’ on Dreamliners, meaning planes could be grounded if they don’t undergo additional rounds of inspections and records checks to make sure parts including the aileron and elevator power control units are still working properly.
Shares dumped as this news added to anxieties about a weekend report about Boeing’s failure to alert the FAA and Southwest, its biggest customer, that it had disabled an important safety feature on the 737 MAX 8.
Still, Boeing shares are – incredibly – still up 17% on the year.