FAA Orders Urgent Boeing 787 Inspections After LATAM Incident Amid New 777X Setback

The U.S. Federal Aviation Administration (FAA) announced on Monday its directive to inspect Boeing’s (BA.US) 787 Dreamliner, following a sudden dive incident involving a LATAM Airlines (LTM.US) 787 in March, which resulted in over 50 passenger injuries.

The FAA attributed the dive to the unexpected movement of the captain's seat, which led to the disconnection of the autopilot system. The agency reported receiving five similar complaints about the captain and first officer seats on 787 aircraft, with the most recent one in June. Two other cases are still under investigation.

The FAA’s airworthiness directive impacts 158 U.S.-registered aircraft and 737 planes globally. Airlines are required to inspect the captain and first officer seats on 787-7, 787-9, and 787-10 models within 30 days to identify any issues. Uncontrolled seat movement could potentially cause rapid altitude loss, posing serious risks to passengers and crew.

Additionally, Boeing encountered another setback on Monday when structural cracks were discovered during the maiden flight of its 777X aircraft. The company stated it would ground the test fleet, replace the faulty components, and investigate the root cause. The affected part is a structural component between the engine and the fuselage. Boeing has informed federal regulators and customers but has not clarified if this issue will delay the aircraft's targeted 2025 delivery schedule.

Boeing has been plagued by multiple crises this year, including an in-flight explosion of one of its aircraft early this year. Consequentially, Boeing’s stock price has tumbled more than 30% year-to-date.

In light of these ongoing issues, Boeing's challenges in ensuring the safety and reliability of its new and existing aircraft models continue to mount, putting significant pressure on the aerospace giant's operational and financial recovery efforts.