Boeing shares fall after second deadly 737 MAX 8 crash


Boeing shares fall after second deadly 737 MAX 8 crash
Ethiopian Federal policemen stand near engine parts at the scene of the Ethiopian Airlines Flight ET 302 plane crash, near the town of Bishoftu, southeast of Addis Ababa, Ethiopia March 11, 2019. REUTERS/Tiksa Negeri

In Summary

  • A Nairobi-bound Boeing 737 MAX 8 operated by Ethiopian Airlines crashed minutes after takeoff from Addis Ababa on Sunday, killing all 157 on board.
  • The same model flown by Lion Air crashed off the coast of Indonesia in October, killing all 189 on board.
  • The Civil Aviation Administration of China ordered Chinese airlines to ground all Boeing 737 MAX 8 planes after the crash

Shares of Boeing Co slid 9 percent in early trading on Monday as many airlines grounded the planemaker’s best selling 737 MAX 8 passenger jet following the second deadly crash involving the plane.

A Nairobi-bound Boeing 737 MAX 8 operated by Ethiopian Airlines crashed minutes after takeoff from Addis Ababa on Sunday, killing all 157 on board. The same model flown by Lion Air crashed off the coast of Indonesia in October, killing all 189 on board.

The Civil Aviation Administration of China ordered Chinese airlines to ground all Boeing 737 MAX 8 planes after the crash. The CAA said it would contact the U.S. Federal Aviation Administration and Boeing regarding the resumption of operations once they are assured that measures have been taken to ensure safety.

Ethiopian Airlines said it had grounded its 737 MAX 8 fleet until further notice as an “extra safety precaution” even though it did not know the cause of Sunday’s crash.

The 737 MAX 8 uses LEAP-1B engines made by CFM International, a joint venture of General Electric Co and Safran SA. Shares in Safran also fell 1.6 percent on Monday.

Boeing said on Monday the investigation into the Ethiopian Airlines crash is in its early stages and there is no need to issue new guidance to operators of its 737 MAX 8 aircraft based on the information it has so far.

Shares of rival Airbus SE were up 0.5 pct.

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