Boeing jets still under scrutiny as regulators launch probe into Southwest Airlines incident

Boeing 737 jetliners sit parked in South Seattle not far from Renton factory
A Boeing 737 jet bound for Southwest Airlines awaits delivery near Boeing's Renton factory in February. An incident involving a 9-year-old 737-800 jet Sunday drew renewed attention to Boeing's struggling 737 program.
Anthony Bolante | PSBJ
Marissa Nall
By Marissa Nall – Associate Editor, Puget Sound Business Journal

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The incident is the latest in a series involving Boeing planes, prompting a string of investigations and the ouster of its top commercial aircraft executive and the planned resignation of its CEO.

The Federal Aviation Administration is investigating another incident involving a Renton-made Boeing Co. (NYSE: BA) plane, which was diverted back to Denver International Airport on Sunday after a piece of the engine’s housing came off during takeoff.

The crew of Southwest Airlines Flight 3695 reported that the engine cowling struck the wing flap as the plane was departing for Houston around 8:15 a.m. local time. The plane landed safely and its passengers were taken to Houston aboard a different plane three hours later.

The plane is an older model 737 that has been flying for around nine years, having been delivered to Dallas-based Southwest (NYSE: LUV) in 2015, and the cowling, or cover, is frequently opened or removed as part of the aircraft's operation.

While the incident appears to be a maintenance problem for the airline, it demonstrates how the jet maker is still under a microscope from both regulators and passengers, Ernest Arvai, president of AirInsight Group, wrote Monday, calling the episode “a maintenance issue on one of Boeing’s safest airplanes.”

Boeing declined to comment on incident, referring questions to Southwest. In a statement to the Business Journal Monday, Southwest said its maintenance teams are reviewing the aircraft.

“We place our highest priority on ultimate safety for our customers and employees,” said the airline, which declined to share additional information, citing the ongoing investigation.

The incident is the latest in a series involving Boeing planes, prompting a string of investigations and the ouster of its top commercial aircraft executive and the planned resignation of its CEO, David Calhoun. Boeing is also in talks with its top competitor, Airbus, about how to divvy up fuselage maker Spirit AeroSystems, which Boeing is seeking to acquire after spinning it off in 2005, a measure it hopes will help it address quality-control concerns within its supply chain.

Boeing's most prominent quality-control incident involved an Alaska Airlines 737 Max 9 plane that returned to Portland International Airport Jan. 5 when a door plug sealing an unused emergency exit door blew out shortly after takeoff. Boeing has already paid Alaska $160 million in initial restitution and fielded lawsuits from the passengers and been subject to investigations by the FAA, National Transportation Safety Board and the Department of Justice.

Boeing's 737 production in Renton, which the FAA froze at 38 per month earlier this year, supports the bulk of its 66,000 employees in Washington state.

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