Boeing shares slip after FAA halts 737 MAX production expansion

Investing.com -- The U.S. aviation regulator has said that it will not let Boeing (NYSE:BA) expand production of its 737 MAX jets, in the latest blow to the planemaker following a dangerous mid-air breach on its MAX 9 model earlier this month.

Shares in Boeing inched down in premarket U.S. trading on Thursday.

The Federal Aviation Administration said in a statement that the move, which will halt the expanded output of one of Boeing's most-popular line of planes, is needed to "ensure accountability and full compliance" by the company with quality control procedures. Fresh concerns have arisen around the safety of Boeing's planes after a non-fatal fuselage blowout on a MAX 9 operated by Alaska Airlines on Jan. 9.

It was still unclear how the FAA's decision would hit Boeing's production plans or its finances. The MAX fleet includes the MAX 8, a key source of revenue for Boeing.

However, the FAA gave the green light for MAX 9 jets to return to skies once they have passed safety inspections.

"The exhaustive, enhanced review our team completed after several weeks of information gathering gives me and the FAA confidence to proceed to the inspection and maintenance phase," said FAA Administrator Mike Whitaker in a statement.

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