By Valerie Insinna and Tim Hepher
WASHINGTON (Reuters) — A mid-air blowout has put jetmaker Boeing (NYSE:BA) in the exact place investors and management hoped it would avoid — back in the regulatory crosshairs just as it was awaiting approval of new models of its best-selling MAX jet.
Investigators say it is too early to determine what caused a so-called door plug to fall off from the side of an aircraft operated by one of Boeing's most loyal customers, Alaska Airlines, on Friday with 171 passengers on board.
The Federal Aviation Administration (FAA) said on Sunday that 171 Boeing MAX 9 airplanes BA.N would remain grounded until the agency is convinced they can safely operate.
The mishap comes as Boeing and supplier Spirit AeroSystems (NYSE:SPR), which made the panel, are grappling with ongoing production setbacks that have hampered recovery from an earlier lengthy 737 MAX safety grounding and wider disruption from the pandemic.
Boeing has been under pressure to expand the MAX portfolio and narrow a gap with rival Airbus, which has extended gains in market share since two Boeing MAX crashes in 2018 and 2019 that killed nearly 350 people and led to the MAX's worldwide grounding for 20 months.
The MAX's troubled history resulted in sweeping reforms of U.S. airplane regulation in 2020, and the Alaska incident could prompt regulators to take a tougher line on other outstanding issues.
Airlines increasingly want to carry more passengers in single-aisle aircraft to take advantage of increases in performance and range while benefiting from their lower cost.
After disappointing sales of the MAX 9, Boeing's largest narrowbody, the company was betting on its newest proposal, the larger-capacity MAX 10, to cut into runaway
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