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China’s aviation regulator conducted an emergency meeting to consider a response to the incident, including a possible grounding of the Boeing Max fleet in the country, Bloomberg reported.
China was the first to ground Boeing’s 737 Max aircrafts after the 2018 and 2019 crashes.
It comes just a week after the FAA said it was “closely monitoring targeted inspections” of Boeing 737 Max models “to look for a possible loose bolt in the rudder control system”.
Fear that company’s value may be impacted
Analysts said inspections of Boeing’s 737 fleet could weigh heavily on the company and further delay the roll out of its Max 10 – of which Ryanair has made 150 orders.
Nick Cunningham, analyst at Agency Partners, said the valuation of Boeing’s stock rests on it eventually delivering 60 of these planes a month. Currently, it is delivering 20 new and 10 from its warehouse.
Mr Cunningham added: “Boeing looks fully valued even if it can pull off 60 of these planes a month, and implicitly therefore, overvalued if it can’t.
“The company may need to re-inspect and modify lots of its 737 aircrafts [after the incident on Alaska Airlines]. This could even affect certification of its Max 10.
“The Federal Aviation Administration has been ultra cautious on certification since the crashes. It now insists on signing off production where previously manufacturers would.”
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