Boeing shares drop after South Korean crash
Boeing’s shares fell on Monday, a day after the deadly crash of a 737-800, a widely used model that is a staple of low-cost airlines, at an airport in South Korea. The passenger plane, operated by Jeju Air, was carrying 181 people, and all but two were killed. Shares of Boeing dropped sharply at the open of trading in New York, before regaining some ground to trade about 2% lower in the afternoon. South Korea’s transportation ministry said Monday that it would conduct inspections of the 101 Boeing 737-800 planes used by airlines in the country, including Jeju Air. The inspections were set to start Monday and be completed by Friday. South Korea’s deputy transport minister, Joo Jong-wan, said at a news briefing that the inspections would look at maintenance records of major systems, including engines and landing gear. Boeing said in a statement on Sunday that it was in contact with Jeju Air and was ready to help the airline. Jeju Air’s stock fell 8.7% at the close of trading in Seoul on Monday, hitting a record low. “The accident’s root cause could be among several factors,” Myles Walton, an analyst at Wolfe Research, wrote in a note, adding that workmanship and design weren’t likely to blame. Still, “commercial aerospace’s infrequent but sometimes catastrophic accidents” present unique risks for aircraft manufacturers like Boeing, he wrote. The crash in South Korea came at the end of another difficult year for Boeing, as it has continued to face labor strife, questions about quality control, mounting debt and supply chain issues. The company’s shares have lost more than 30% of their value this year. In January, a panel blew off a 737 Max plane during an Alaska Airlines flight, resurfacing concerns about the safety of Boeing planes five years after two fatal crashes of the Max, a successor to the 737-800. The Federal Aviation Administration increased oversight of the company and limited production of the jet, dealing a financial blow to the firm, which has not reported an annual profit since 2018.<br/>
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Boeing shares drop after South Korean crash
Boeing’s shares fell on Monday, a day after the deadly crash of a 737-800, a widely used model that is a staple of low-cost airlines, at an airport in South Korea. The passenger plane, operated by Jeju Air, was carrying 181 people, and all but two were killed. Shares of Boeing dropped sharply at the open of trading in New York, before regaining some ground to trade about 2% lower in the afternoon. South Korea’s transportation ministry said Monday that it would conduct inspections of the 101 Boeing 737-800 planes used by airlines in the country, including Jeju Air. The inspections were set to start Monday and be completed by Friday. South Korea’s deputy transport minister, Joo Jong-wan, said at a news briefing that the inspections would look at maintenance records of major systems, including engines and landing gear. Boeing said in a statement on Sunday that it was in contact with Jeju Air and was ready to help the airline. Jeju Air’s stock fell 8.7% at the close of trading in Seoul on Monday, hitting a record low. “The accident’s root cause could be among several factors,” Myles Walton, an analyst at Wolfe Research, wrote in a note, adding that workmanship and design weren’t likely to blame. Still, “commercial aerospace’s infrequent but sometimes catastrophic accidents” present unique risks for aircraft manufacturers like Boeing, he wrote. The crash in South Korea came at the end of another difficult year for Boeing, as it has continued to face labor strife, questions about quality control, mounting debt and supply chain issues. The company’s shares have lost more than 30% of their value this year. In January, a panel blew off a 737 Max plane during an Alaska Airlines flight, resurfacing concerns about the safety of Boeing planes five years after two fatal crashes of the Max, a successor to the 737-800. The Federal Aviation Administration increased oversight of the company and limited production of the jet, dealing a financial blow to the firm, which has not reported an annual profit since 2018.<br/>
