Alaska Airlines (ALK) is grounding all flights on the Boeing 737 Max 9 (BA) until Saturday, January 13 for inspection after door plug flew off of an Alaska Airlines flight on Saturday January 6.

Boyd Group International CEO and President Mike Boyd joins Yahoo Finance Live to weigh in manufacturing challenges in the sector and the overall impact on airline stocks. Boyd points out the risks for Alaska Airlines financially, arguing “they cannot be anywhere close to ‘in the black’ when 30% of their airplanes are not being productive.”

Boyd insists that Boeing will have to make efforts to assuage the fears of airlines and flyers who have concerns over safety “we have a manufacturing issue, not a loose screw.”

Boyd believes that “someone has to go into Boeing and look all aspects of what they’re doing,” and expects the Federal Aviation Administration or the National Transportation Safety Board to take more serious steps.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Eyek Ntekim

Video Transcript

SEANA SMITH: Now, lets talk about the big story that we have been following all week. And that is what has played out at Boeing. Alaska Airlines grounding all Boeing 737 MAX 9 planes through Saturday for inspections.

Now this comes after a door panel blew off of an Alaska Airlines flight over the weekend. So does Boeing need a manufacturing overhaul? And what does this also-- the pressure that we could see on airlines going forward? You're looking at Alaska Air off nearly 2% today.

Our next guest saying that poor manufacturing has yet to be addressed. So let's break it all down exactly what this means for the company for the sector moving forward. We have Mike Boyd. He's Boyd Group International CEO and President.

Mike, it's great to have you here. So just your reaction to the fact that we are seeing a further grounding of these planes. And then, the pressure that could eventually put on some of these airline stocks.

MIKE BOYD: Well, the real issue here is Alaska Airlines. Almost 30% of their aeroplanes are these grounded aeroplanes now. So if they have to stay down for any length of time beyond this weekend, we're going to have to have some major changes at Alaska to make up for it.

In other words, they may stop flying to some small markets. Places like Kalispell and places like that might get hurt. But, also that they cannot be anywhere close to in the black when 30% of their aeroplanes are not being productive. That's one major issue.

Even for United. It's a hit. It's about 11% of their narrowbody fleet. The real issue here. We've got to have something coming out of the Boeing side that gives confidence again. Not just to these two airlines, but to the flying public. We have a manufacturing issue, not a loose screw.

BRAD SMITH: And, so all that considered, is there anything in terms of an overhaul that you're watching for or expecting to come on the manufacturing side with Boeing?

MIKE BOYD: I'm not expecting exactly anything. But, again, we found the problem. Bad manufacturing or sloppy manufacturing. That means someone has to go into Boeing and start to look at all aspects of what they're doing.

This is not just a plug. So I would suspect we will see the NTSB or the FAA come out with something a little more serious than just-- well, we found some bolts and then tightened them.