Boeing slides on report that employees may have misled the FAA on the doomed 737 Max

Boeing 737 MaxBoeing 737 MAX airplanes are seen parked on Boeing property near Boeing Field, Washington, in September 2019. The planes have not been delivered to airlines yet as they remain grounded after two fatal crashes.David Ryder/Getty Images

  • Shares of Boeing traded as much as 4% lower Friday after Reuters reported that employees of the airplane manufacturer may have misled the Federal Aviation Administration in 2016 regarding the 737 Max.
  • Boeing reportedly turned over internal messages between two employees to the FAA that suggest the company may have lied about a key safety system on the 737 Max.
  • According to Reuters, the FAA said on Friday the messages were "concerning" and that it was working to "determine what action is appropriate."
  • Watch Boeing trade live.

Boeing's stock price slid as much as 4% Friday on a report that the airplane maker may have misled the Federal Aviation Administration in 2016 regarding the 737 Max.

According to Reuters, Boeing turned over internal messages between two employees to the FAA that show the company's employees may have lied about a key safety feature on the grounded aircraft model.

The messages refer to the performance of the MCAS anti-stall system, which has been connected to the two fatal 737 Max crashes that resulted in 346 deaths. The system malfunctioned during both flights and sent the planes into irreversible nose dives.

According to The New York Times, pilot Mark Forkner complained in the messages that the system wasn't working properly.

"Granted, I suck at flying, but even this was egregious," Forkner said in the messages, according to The Times.

Forkner added: "I basically lied to the regulators (unknowingly)."

The FAA told Reuters the messages were "concerning" and that the agency "is reviewing this information to determine what action is appropriate."

Shares of Boeing are up about 10% year-to-date.

Read more: GOLDMAN SACHS: These 5 trades can help investors make a killing during a crucial earnings season

BA stock

Get the latest Boeing stock price here.

{{}}
Add Comment()
Comments ()
X
Sort By:
Be the first one to comment.
We have sent you a verification email. This comment will be published once verification is done.