Boeing's 737 Max 9 (NYSE: BA) is in the spotlight again, but for the wrong reasons, all 737s are grounded again. This has caused two airlines, United (NASDAQ: UAL) and Alaska (NYSE: ALK), to scramble due to the temporary removal of this model from their fleets. However, the 737 Max aircraft line has had a history of bad news, being grounded globally following two fatal plane crashes in 2019.
The aerospace giant was starting to see light at the end of the tunnel, as they've struggled to see green since the market Covid-crash. With Boeing's reputation possibly at risk, its CEO held an all-hands-on-deck meeting to discuss the importance of delivering quality products and ensuring the general public's safety. It's always important to remember that quality trumps quantity any day of the week, and this is Boeing's chance to do a hard reset and repair an apparent culture flaw from within.
The planes will remain grounded until adequate inspection standards are generated, as the FAA denied Boeing's initial proposal. That said, there are two ways this situation could pan out. Boeing has taken a dip and may cool off more, but if everything goes well with their guidance and they can get these planes back into the air, definitely buy the dip because they only have one true competitor, and that's Airbus (OTC: EADSY).
In conclusion, if Boeing does not mitigate their quality issues and the government loses confidence in them, Airbus may become the new sheriff in town, as airplane demand is beginning to grow again.