Shares of aviation manufacturer Boeing Company (BA) are down over 7% in pre-market trading on Monday after video footage of a Boeing 737 Max 9 jet's side panel blowout on an Alaskan Airlines flight (ALK). The plane was able to return safely without harm to the passengers. In response to the incident, the Federal Aviation Administration (FAA) has grounded 171 of Boeing's premier jets.

Yahoo Finance reporters Jared Blikre and Alexis Keenan join the Live show to discuss the fallout from the incident for Boeing.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino.

Video Transcript

BRAD SMITH: Shares of Boeing, they are tumbling. The company's Max 9 planes. Those 737 Max 9 planes being grounded until the FAA deems them safe to fly. This is following an incident on Friday where a side panel was blown out mid-air on an Alaskan Airlines flight from Portland, Oregon, to Ontario, California.

A small section of the plane's fuselage blew out at 16,000 feet. There were no deaths. And the flight was able to return safely to Portland. The National Transportation Safety Board has since found the panel in the backyard of an Oregon teacher's home.

We have extensive coverage on this story. And Jared Blikre is in the newsroom. Alexis Keenan here at the desk with us. And later, we'll speak to Ronald Epstein, who is the Bank of America Senior Aerospace and Defense Analyst. Let's start with our own Jared Blikre on the sell-off in Boeing and the major airlines this morning. Jared.

JARED BLIKRE: Yeah, let's go straight to the Wi-Fi interactive where I am tracking general weakness in the aerospace industry. And you can see the background are the quotes from Friday. So Boeing, which was up 1.66%, is down 7.59% in early market. And that is a stark contrast from its competitor, which is AIR.PA Airbus. That is up in European trading. It's trading over in Paris about 2% to the upside here.

But one of Boeing's biggest suppliers here, Spirit AeroSystems, which gets about 60% to 70% of their revenue from Boeing, that is tracking a 14% loss in the premarket. And just taking a look at the five-year price chart here, we can see echoes of what happened before when the 737 Max system was under and putting pressure on those companies.

So just taking a look at Boeing same time span, you can see we are up against resistance here. But with a 7.63% decline that's being projected for the early trading, probably not going to breach that to the upside today.

SEANA SMITH: All right, thanks so much, Jared. We want to kick it over to Alexis Keenan. She's here at the desk for us. And Alexis, when we bring up these issues that have plagued Boeing now for some time, bring us up to speed at exactly what the last couple of years have looked like for this company.

ALEXIS KEENAN: Yeah, so you go back to 2018-- late 2018, early 2019 when we had the crashes of Lion Air and Ethiopian Air. And those obviously a major headache for Boeing. Boeing still paying out settlements, entering in deferred prosecution agreements with the Justice Department, billions of dollars at stake here. But let's talk about exactly what happened over the weekend and why this is so critical for Boeing here.

The NTSB now investigating this accident over the weekend in a press conference. The director saying that this would have been a violent and chaotic experience for all the passengers and crew on board.

There were only minor injuries miraculously, noting that the two seats that were adjacent to this door plug, is what it's called, at 16,000 being blown out of the aircraft, 171 passengers, no one getting any more than a minor injury, six crews. And the FAA then has grounded the plane on Saturday after that Friday incident.

Now, this is the Max 9 plane. This is specifically not the Max 8 that was involved in those two crashes that killed 350 people approximately. This is one of four jets in Boeing's Max family-- the Max 7, 8, 9, and 10. Two of those in the air. The other two, the Max 7 and the Max 10, still awaiting certification from the FAA.