Following an emergency landing by an Alaska Airlines flight on January 6 due to an issue with the emergency exit door, the US Federal Aviation Administration (FAA) promptly suspended flights for all 171 Boeing 737 MAX 9 aircraft in US airspace, sending Boeing shares into a nosedive. US aerospace giant’s shares have taken a hit, shedding 8% of their market value on FAA decision news.

The airworthiness directive issued by the FAA affects 171 aircraft worldwide and mandates a thorough inspection prior to resuming flight operations. The incident involving Alaska Airlines is currently under investigation by the National Transportation Safety Board (NTSB).

The Boeing 737 MAX jet, introduced in 2015, has experienced multiple incidents prior to the most recent Alaska Airlines ordeal. Grounded from 2018 to 2020 following fatal crashes, the aircraft faced severe scrutiny. In December, Boeing recommended inspections of new 737 MAX planes due to possible problems with the rudder control system.

The plunge of Boeing’s stock has raised general worries about the company’s supervision and progress. As United Airlines has grounded 79 planes, Alaska Airlines has grounded 65, and 74 have been grounded by other airlines, uncertainties surround the prospects of airlines that currently operate the Boeing 737 MAX aircraft.

Boeing’s recent difficulties are compounded by this latest setback, leading to speculation that its competitor, Airbus, could gain traction in the market. The top executives at Boeing are now under increased scrutiny from regulators and customers, indicating potential challenges for the aerospace company. Consequently, anxious investors swiftly sold off their shares due to the heightened risks associated with Boeing’s investment prospects.