Boeing Stock Falls on 777 Engine Failure. Thats Wrong.

Boeing stock

Boeing Stock Falls on 777 Engine Failure. Thats Wrong.

Boeing stock was down 3% in premarket trading after an engine failure on a United Airlines 777. The point to remember is that Boeing doesnt make or maintain …

Boeing Stock Falls on 777 Engine Failure. That's Wrong. | Barron's

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https://www.barrons.com/articles/boeing-stock-falls-on-engine-failure-in-777-model-jet-thats-wrong-51614002230

Boeing Stock Falls on Engine Failure in 777-Model Jet. That’s Wrong.

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Feb. 22, 2021 8:57 am ET

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Pieces of the engine that failed on United Airlines Flight 328 landed in a neighborhood in Broomfield, Colo.

Michael Ciaglo/Getty Images

Skittish investors just won’t give

the .

(ticker: BA) stock was down about 3% in premarket trading after an on a

777 jet. Investors are still scarred by the near-two year saga that grounded the jet, so they sell Boeing shares on any hints of safety trouble.

The reaction in Boeing stock, if understandable, still feels a little odd. Boeing doesn’t make or maintain the engines. The 777 that experienced the failure had 4000-112 engines. Pratt is a division of

(RTX).

The flight in question, United 328, was leaving Denver for Hawaii when the right engine suffered an “uncontained failure.” Engine parts left their housing, the nacelle, and hit the ground. Fortunately, the plane made it back to the airport with no injuries.  

“Boeing is actively monitoring recent events related to United Airlines Flight 328. While the NTSB investigation is ongoing, we recommended suspending operations of the 69 in-service and 59 in-storage 777s powered by Pratt & Whitney 4000-112 engines until the FAA identifies the appropriate inspection protocol,” reads a statement from Boeing released Sunday.

Pratt & Whitney have also put out a brief statement that reads, in part: “Pratt & Whitney is actively coordinating with operators and regulators to support the revised inspection interval of the Pratt & Whitney PW4000 engines that power Boeing 777 aircraft.”

Boeing and Raytheon weren’t immediately available for additional comment about engine-maintenance practices or possible causes of the failure. United Airlines didn’t immediately respond to a request for comment either.

After the accident, the Japan Civil Aviation Bureau and the Federal Aviation Administration suspended operations of 777 jets powered by Pratt & Whitney 4000-112 engines. Boeing supports the move, which feels like the correct decision.

“Initial FAA findings point to two fractured fan blades,” wrote Vertical Research Partners aerospace analyst in a Monday research note, pointing out that former NTSB Chairman Jim Hall said this is another example of “cracks in our culture in aviation safety (that) need to be addressed.” 

Raytheon stock was down about 2% in premarket trading. United Airlines shares, however, are up about 1.5%.

and

futures were down about 0.5% and 0.7%, respectively, on Monday morning.

Boeing shares are up about 2% year to date, but shares are down almost 50% since early March 2019, when a in a matter of months led to the worldwide ground of Boeing’s newest-model, single-aisle aircraft.

The MAX accidents have led to a lot of changes at Boeing including the creation of a board-level .

Write to Al Root at

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Boeing Stock Falls on Engine Failure in 777-Model Jet. That’s Wrong.

Skittish investors just won’t give Boeing the benefit of the doubt.

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