FAA Proposes Mandatory Maintenance Checks For Some Boeing 787 Dreamliners - Boeing (NYSE:BA), Direxion Da

The Federal Aviation Administration has proposed requiring The Boeing Company (NYSE:BA) to conduct maintenance record checks or inspections of some of its 787 Dreamliners after the company reported missing a test on a part to the main landing gear.

The FAA has recommended a new airworthiness directive for all of Boeing’s Model 787-8, 787-9, and 787-10 airplanes after Boeing reported that drag brace lower lock link assemblies, which lock landing gear into place for landing, were not inspected during manufacture, according to a document in the U.S. Federal Register.

“The FAA is proposing this AD to address the unsafe condition on these products,” the document said.

An investigation determined that the missed inspection was caused by “human error” isolated to a single technician.

“Undetected cracks could lead to fracture of the drag brace lower lock link assembly,” the document stated.

“This condition, if not addressed, could lead to MLG collapse, which could result in loss of directional control while the airplane is on the ground, with the potential for off-runway excursion or penetration of the wing box fuel tank.”

The FAA estimated that the directive would affect 156 U.S.-registered airplanes, if adopted as proposed.

The missed inspection occurred after Boeing’s 737 Max airplanes were grounded earlier this year for a second time after a door flew off during an Alaskan Airlines flight.

The planes were previously grounded from March 2019 to December 2020 after two crashes that killed a total of 346 people.

In July, Boeing acquired Spirit Aerosystems for $4.7 billion, pled guilty to criminal charges related to the two fatal plane crashes and appointed Robert Ortberg as its new CEO.

Price Action: Shares of Boeing finished 6.45% lower at $178.31 on Thursday. Several exchange-traded funds that hold the stock also declined.