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Boeing Rival Airbus Stock (EADSY) Falls after Major Recall and Flight Restriction

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Shares of French planemaker Airbus fell on Friday after it issued a safety alert for software protection and imposed restrictions on certain flights with Pratt & Whitney engines.

Boeing Rival Airbus Stock (EADSY) Falls after Major Recall and Flight Restriction

Airbus’s shares (EADSY) fell on Friday after the French planemaker flagged the need for immediate software repair on “a significant number” of its A320 jets and curbed A320 flights with Pratt & Whitney (RTX) engines over freezing-fog concerns.

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The development for the Boeing (BA) rival coincides with one of the busiest travel weekends of the year in the U.S. and beyond.

Airbus Plans Software Change for A320 Fleet

The European aircraft manufacturer on Friday noted that it issued urgent notices to airlines that intense solar radiation could corrupt data critical to the functioning of flight controls. Airbus said it has identified “a significant number” of its best-selling A320 family of jets that could be impacted by such an incident.

To rectify the situation, Airbus plans to implement a software change and/or hardware protection on the identified aircraft to “ensure the fleet is safe to fly.”

Airbus noted that the urgent alert was issued after “a recent event involving an A320 family of aircraft.” However, Reuters reported that the said incident involved an October 30 flight owned by American low-cost airline JetBlue (JBLU).

What’s Behind the Recall?

Insider sources told the outlet that the flight, which traveled from Mexico to New Jersey, experienced a sudden and uncommanded descent that left several passengers hurt. The flight reportedly made an emergency landing in Tampa, Florida, with the situation prompting an investigation by the U.S. aviation authorities.

Furthermore, sources have noted that the issue affects about half of the French aircraft maker’s fleet. They also noted that about 3,000 A3200-family jets were in the air across the world as of the time Airbus made the announcement. Estimates also indicate that Airbus has about 11,300 A320 aircraft in operation.

Recall to Cause Flight Disruptions

Following its emergency alert, Airbus expects the European aviation safety regulator to issue an emergency airworthiness directive that “will lead to operational disruptions to passengers and customers.”

The A320 family of aircraft is widely popular in both the U.S. and Europe, serving as the backbone of many commercial airlines’ short to medium-distance fleets. Recently, the A320neo family of single-aisle jets helped Airbus to surpass its rival Boeing’s 737 family to become the world’s best-selling airliner.

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