(Reuters) -Aviation services provider AAR (NYSE:AIR) Corp said on Monday it did not perform any work on or near the mid-cabin exit door plug of the Alaska Air (NYSE:ALK) aircraft whose cabin panel ripped off while in mid-air.
Investors sold off AAR shares on Monday following an analyst note from Deutsche Bank that noted that the aircraft spent time at an Oklahoma facility operated by AAR.
A piece of fuselage tore off the left side of an Alaska Airlines-operated Boeing (NYSE:BA) 737 MAX 9 jet on Friday after taking off from Portland, Oregon, forcing an emergency landing.
The panel that tore off is a plug put in place on some MAX 9s instead of an additional emergency exit.
However, AAR said it did not perform any work near the mid-cabin panel of the aircraft in question. "AAR was contracted by Alaska Airlines to perform a 2KU Modification (WiFi modification) on the aircraft that was performed from Nov. 27 to Dec. 7, 2023," AAR said.
At one point Monday, AAR shares fell as much as 8% in morning trade; they pared losses after the company's statement and were down 2.9%.
Deutsche Bank research noted that the aircraft had departed Oklahoma City on Dec. 7, citing flight tracking data, where WiFi installations could have occurred at AAR's facility.
Reviewing videos of other WiFi installs, Deutsche Bank said emergency exits had been removed in such cases.
"It might be possible that a door plug also might have been removed and then reattached during this process," the report added.
Deutsche Bank did not immediately respond to a request for additional comments.