Boeing's shares were on a downward trajectory during Monday trading as media outlets reported that South Korea's transport ministry will initiate an investigation into the company’s fleet of 737-800 aircraft following a tragic plane crash over the weekend. A Jeju Air flight en route to South Korea from Thailand made a belly landing and subsequently exploded at Muan International Airport on Sunday, resulting in the deaths of 179 of the 181 individuals onboard, according to various media sources.
Reports indicate that the Boeing 737-800 was observed colliding with a wall while attempting its landing maneuver. Authorities have yet to determine the cause of the crash, but they are exploring possibilities such as a bird strike and a potential failure of the aircraft's control systems, as reported by Reuters.
This unfortunate incident resulted in a 3% decline in the plane manufacturer’s shares during Monday’s trading session. The Ministry of Land, Infrastructure, and Transport of South Korea stated that the pilot of the aircraft referenced a "bird strike" shortly after a warning about bird activity had been issued, a detail reported by CNBC.
In response to the incident, South Korea's acting president, Choi Sang-mok, has reportedly instructed the transport ministry to carry out an emergency inspection of the entire airline operation system within the country. The investigation is planned to encompass all 101 Boeing 737-800 aircraft currently operated by airlines in South Korea, as mentioned in reports by Reuters. Choi emphasized in a statement, "We will transparently disclose the progress of the investigation into the accident, even before the final results are released, and keep the bereaved families informed," according to the Yonhap news agency.
Boeing has not provided a comment to requests from MT Newswires regarding the incident. In broader terms, Boeing's stock has plummeted by 33% year-to-date. Earlier this year, one of Boeing’s 737-9 Max jets, which was operated by Alaska Air, experienced a structural failure mid-flight, prompting a temporary grounding of the aircraft model as well as an investigation by the Federal Aviation Administration. In July, Boeing reached an agreement to plead guilty to a fraud conspiracy charge linked to the Lion Air flight crash in 2018 and the Ethiopian Air flight disaster in 2019, a situation that received extensive media coverage at the time.
Additionally, towards the end of July, the company appointed Robert Ortberg as the new CEO, effective August 8, following the retirement announcement of Dave Calhoun earlier in 2024. Furthermore, Boeing managed to negotiate a labor deal with striking factory workers in November. However, in October, the company reported a third-quarter loss that surpassed expectations and revealed plans to reduce its workforce by approximately 10% in the upcoming months. Price: 174.66, Change: -6.06, Percent Change: -3.35..