On Jan. 6, 2024, the U.S. Federal Aviation Administration (FAA) temporarily grounded certain Boeing 737 MAX 9 aircraft for immediate inspection following an Alaska Airlines–operated jet’s emergency landing after a large section of the aircraft blew out shortly after takeoff. Although only minor injuries were reported, the incident raises broader concerns about the safety of the aircraft for both the manufacturer and operators and heightens scrutiny on inspection requirements.

This is yet another issue with the 737 MAX line for Boeing that appears to be plagued by design/production and safety issues. We do not anticipate a material credit impact on airlines as a result of this incident unless it results in a prolonged grounding of the impacted aircraft.

The FAA’s order to ground the Boeing 737 MAX 9, which some other regulatory bodies worldwide also adopted, should affect an estimated 171 aircraft out of a total 215 in service worldwide, most of which operate in t