Boeing (BA) suffers another steep decline amid calls to ground 737 Max Planes

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Boeing 737 Max
Credits: Boeing

The Boeing Company (NYSE: BA) suffered another blow on Tuesday after the European Union Aviation Safety Agency (EASA) suspended the flight operations of all 737-8 Max airplanes in the continent.

EASA’s decision comes after the tragic Ethiopian Airlines Flight 302 crash that killed its157 passengers and crew on Sunday. According to the agency, its decision is a precautionary measure to ensure the safety of passengers.

Australia, China, Indonesia, and the United Kingdom also grounded all flights involving Boeing 737 Max airplanes.

Over the past two days, the stock price of Boeing declined 11 percent. On Monday, BA shares dropped 5 percent $399.82 each and tanked another 6 percent to $375.41 each on Tuesday.

In a statement, Boeing emphasized that its number one priority is safety. The company expressed its full confidence on the safety of its 737 Max airplanes.

Additionally, company said, “We understand that regulatory agencies and customers have made decisions that they believe are most appropriate for their home markets. We’ll continue to engage with them to ensure they have the information needed to have confidence in operating their fleets.”

FAA Administrator says there’s no basis to ground Boeing 737 Max

On the other hand, Daniel Elwell, the administrator of the U.S. Federal Aviation Administration (FAA) said is conducting an extensive review of all available data and aggregate safety performance from pilots and operators of the Boeing 737 Max.

Elwell said there is “no basis to order grounding the aircraft” since the FAA’s review shows “no systemic performance issues.”  He added that other civil aviation authorities did not provide FAA with data that would justify such action.

Furthermore, Elwell said, “In the course of our urgent review of data on the Ethiopian Airlines Flight 302 crash, if any issues affecting the continued airworthiness of the aircraft are identified, the FAA will take immediate and appropriate action.”

U.S. Senators Mitt Romney and Ted Cruz believe that the FAA should temporarily ground Boeing 737 Max flights until it completes its investigation confirming the safety of the aircraft.