By CCN: Boeing stock dropped 1.29% to $371.77 today, after falling as low as $366 when the Wall Street Journal reported that the company knew of the 737 MAX safety issues a year before reporting them to the FAA.
The decline, which comes on top of previous stumbles, simply gives buyers an opportunity to buy a quality stock at a discount.
Boeing Stock Flinches After Engineers Find Safety Problems
The 737 MAX 8 aircraft, enduring scrutiny for its Lion Air crash last October, was delivered in May of 2017. Engineers knew by August 2017 that there were possible problems with the aircraft, although senior management was apparently not aware of their concerns.
The problem in question is related to the Angle of Attack Disagree Alert, or AOA. The AOA alert is triggered if sensor data that measures the angle at which an aircraft wing cuts through air indicates a danger. The software then forces the plane in a downward direction, which caused the Lion Air crash.
Boeing, however, insists that a thorough review showed the AOA alert was “not critical safety data.” In a statement issued Sunday, the company said:
“Boeing discussed the status of the AOA Disagree alert with the FAA in the wake of the Lion Air accident. At that time, Boeing informed the FAA that Boeing engineers had identified the software issue in 2017 and had determined per Boeing’s standard process that the issue did not adversely impact airplane safety or operation. In December 2018, Boeing convened a Safety Review Board (SRB) to consider again whether the absence of the AOA Disagree alert from certain 737 MAX flight displays presented a safety issue. That SRB confirmed Boeing’s prior conclusion that it did not. Boeing shared this conclusion and the supporting SRB analysis with the FAA.”
The question is whether the software designers are to blame, as the design didn’t meet Boeing’s standard, or the aerospace…