Boeing Company (NYSE:BA) shares are trading lower on Thursday.
The head of the Federal Aviation Administration reportedly admitted Thursday to insufficient oversight of Boeing following a mid-air emergency involving Alaska Air Group, Inc. (NYSE:ALK) in January.
At a Senate Commerce Committee hearing, FAA Administrator Mike Whitaker's remarks signify the agency's first acknowledgment of insufficient oversight in the January 5 incident, involving a blown-out door panel during a flight, Reuters reported
"The FAA should have had much better visibility into what was happening at Boeing before Jan. 5," Whitaker said.
The FAA's approach before the mid-air incident "was too hands off, too focused on paperwork audits and not focused enough on inspections," Whitaker added, which Reuters noted.
According to Benzinga Pro, BA stock has lost over 18% in the past year. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF (NYSE:GABF).
Meanwhile, Boeing is reportedly probing a fresh quality issue concerning its 787 Dreamliner, with hundreds of fasteners found incorrectly installed on some undelivered jet fuselages, Reuters reported in a separate story.
The newest issue for the U.S. planemaker involves incorrect torquing of over 900 fasteners per plane, split equally on both sides of the jet's mid-body, adding to a series of manufacturing snags, the report read, citing people familiar with the matter.
Flight safety isn't immediately compromised, but Boeing aims to determine the cause and extent of the issue before deciding on any necessary rework, the sources told Reuters, asking not to be identified.
"Our 787 team is checking fasteners in the side-of-body area of some undelivered 787 Dreamliner airplanes to ensure they meet our engineering specifications. The in-service fleet can continue to safely operate," a spokesperson confirmed to Reuters.
"We are taking the time necessary to ensure all airplanes meet our delivery standards prior to delivery. We are working closely with our customers and the FAA and keeping them updated," Reuters quoted the spokesperson.
Price Action: BA shares are trading lower by 1.08% to $180.70 at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock