FAA urges inspection of additional Boeing aircraft

Boeing (BA) faces new inspection recommendations from the Federal Aviation Administration (FAA) over the manufacturing and design of door plugs on some of its 737-900ER aircraft. The FAA advised airlines to check certain 900ER planes, though did not require the inspections.

This continues a streak of safety directives aimed at Boeing models after a mid-flight incident on an Alaskan Airlines (ALK) flight.

Yahoo Finance's Pras Subramanian break down the details.

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 Angel Smith

Video Transcript

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BRAD SMITH: Time for some trending tickers that we're watching today starting with BA, Boeing. Trouble escalating for the company after the FAA recommended airlines begin inspecting door plugs on a second model, Boeing 737-900ER planes. Now you're taking a look at Boeing shares here pre-market, down by about 6/10 of a percent.

This is continued pressure and spill over from last week, but continued investigation around some of the airlines or around some of the aircrafts, specifically. And so the FAA especially is just trying to get ahead of it as best as possible at this point. But instructing the airlines that operate this particular aircraft to run this inspection.

SEANA SMITH: Yeah. But it's also important to point out here that these checks are recommended. It's not required. So maybe why we're not seeing a bigger reaction in some of these airline stocks, it's just because they don't immediately need to take these aircrafts out of service in order to conduct these checks. So a bit of a muted reaction then when you take that into account for some of these airline stocks.

Now, these checks, it does involve just short of 400 planes, about 380 planes that are between 5 and 17 years old. But again, the reason that we're talking about this is just the long line of issues that Boeing has had to deal with over the last several years. So just the fact that this probe has now expanded just a bit. And they are now encouraging airlines to check door plugs on a second Boeing jet, it could potentially signal more risk for this stock ahead.

BRAD SMITH: Yeah, absolutely. And ahead of some of the airline earnings that are set to come forward too. It'll be interesting to say what CEOs have to say about either their orders or their confidence in Boeing as well, where we were able to get that compliment or that comments from Delta CEO when they reported earnings two weeks ago at Bastian, saying that he still has full faith. But we'll see where other airline CEOs add on their own kind of tenor to that conversation.

SEANA SMITH: Yeah, certainly. And we'll hear from some of those airlines later this week.