Boeing Unfazed by FAA Inspection Directive on 737 MAX
The US Federal Aviation Administration (FAA) has mandated inspections on 471 Boeing 737 MAX aircraft registered in the US, starting September 10. The inspections are focused on metal reinforcement near the forward galley door, where cracks could compromise the fuselage's strength.
So far, no cracks have been detected on MAX aircraft. The FAA estimates that an initial visual inspection will cost $40,035, while a detailed inspection cycle could reach $160,140. Repair costs are still unknown.
Boeing's stock closed higher on Friday at $234.42, rising 0.96% and marking an 8.5% increase for the week. Markets view the directive as a routine maintenance issue rather than a new grounding.
The FAA's estimate of inspection costs represents about 0.025% of Boeing's $631 million free cash flow in the second quarter, according to analysts. The airlines are responsible for the listed inspection labor.