United Airlines (UAL.O), opens new tab fell 3.4% on Monday after the FAA announced over the weekend that it was tightening its control of the carrier following a string of safety incidents..
The FAA announced Saturday that it would conduct a formal examination of United to guarantee safety compliance and may delay future certification efforts "based on findings from oversight." Saturday that the FAA may deny consumers on United's new planes or routes. United and the FAA declined comment.
The Air Line Pilots Association (ALPA), the union representing United pilots, said Monday that the official evaluation is a type of audit that U.S. carriers undergo every few years. United last had one in 2018.
"This is an opportunity to identify the opportunities for improvement within our operation, identify changes to mitigate operational risk, and poise our airline for success by managing those changes effectively," ALPA added.
ALPA is unsure if the FAA will halt United certification. "What we do know is that Boeing delivery delays could have an impact, just as any softening of the economy or any temporary pause in certification activities," stated ALPA. United has multiple safety incidents in the past two weeks.
After landing in Oregon on March 15, a United plane's exterior panel was missing, prompting an FAA inquiry. A United Airlines Boeing (BA.N), opens new tab 737 MAX hit Houston grass before that event.
After takeoff from San Francisco, a United Boeing 777-200 destined for Japan lost a tire and was redirected to Los Angeles, where it landed safely. United said Friday that the FAA will be "in our operation as they begin to review some of our work processes, manuals and facilities."
Boeing deliveries were "way behind this year," and United stated it was "impossible to say when MAX 10 is going to get certified."
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