KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
The US National Transportation Safety Board (NTSB) has raised alarms regarding more than 40 foreign operators of Boeing 737 airplanes that may be using aircraft equipped with rudder components that could pose serious safety risks.
On Thursday, the NTSB issued urgent safety recommendations concerning the risk of a jammed rudder control system, a concern that arose after a February incident involving a United Airlines flight. The NTSB disclosed on Monday that two foreign operators had experienced similar incidents back in 2019 involving rollout guidance actuators.
Concerns Over Undetected Safety Issues
NTSB Chair Jennifer Homendy expressed concern in a letter to Federal Aviation Administration (FAA) Administrator Mike Whitaker, noting the potential unawareness among airlines regarding the presence of these actuators on their 737 airplanes. "We are concerned about the possibility that other airlines are unaware of the presence of these actuators," Homendy stated.
This issue marks another setback for Boeing, which has faced multiple safety questions recently, including a mid-air emergency in January involving an Alaska Airlines MAX 9 that was found to be missing four crucial bolts.
The NTSB is currently investigating the February incident, during which the rudder pedals on a United 737 MAX 8 became "stuck" in a neutral position during landing at Newark Airport. Fortunately, there were no injuries among the 161 passengers and crew members on board.
Impact on Boeing's Stock and Operational Integrity
As a result of these developments, Boeing's shares fell 2.7% on Monday. The NTSB reported that there are currently no 737s in service with US airlines that have the affected actuators, which were installed on some 737 MAX and earlier 737 NG models with an optional landing system.
However, the NTSB indicated that 271 impacted parts might still be in use on aircraft operated by at least 40 foreign air carriers, with 16 potentially installed on US-registered aircraft and up to 75 used in aftermarket installations. The NTSB and FAA have not disclosed which airlines may be affected.
In response to the situation, Homendy criticized Boeing for not informing United Airlines that the 737s it acquired were equipped with actuators "mechanically connected to the rudder control system." This oversight raises concerns about flight crews' preparedness in the event of a failure at critical flight phases. "Flight crews may not know what to expect if the rollout guidance actuator fails at low altitude or during landing," the NTSB emphasized, labeling such a failure as "unacceptable."
Boeing declined to comment on the matter on Monday but had previously informed affected 737 operators of a "potential condition with the rudder rollout guidance actuator" in August. The FAA has indicated it takes the NTSB's recommendations seriously and plans to conduct additional simulator testing in October. A corrective action review board met recently to ensure affected civil aviation authorities receive the necessary information and recommended actions.
This situation underscores the ongoing challenges facing Boeing as it navigates safety concerns and regulatory scrutiny while striving to maintain operational integrity across its aircraft fleet.
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