Boeing shares plunge nearly 5% after deadly South Korean plane crash
Boeing shares fell 4.5% Monday morning after South Korean officials ordered an inspection of the plane model involved in the deadly Jeju Air crash over the weekend.
Acting President Choi Sang-mok instructed the Transport Ministry to launch an emergency inspection of the country’s entire airline operations. Officials at the Ministry of Land, Infrastructure and Transport (MOLIT) said they would inspect all B737-800 planes, the model involved in the crash.
On Sunday morning, the commercial plane skidded off the runway, crashed into a wall and burst into flames while landing at Muan International Airport – killing all but two of its 181 passengers. The two survivors were plane crew members who were pulled from the flaming wreckage, suffering severe injuries, according to officials.
The exact cause behind the crash is unclear. The jet crash-landed without the correct landing gear after the pilot alerted the control tower of a “bird strike,” flagged an aborted landing attempt and declared “Mayday,” according to Yu Kyung-soo, director of aviation safety at MOLIT, per an NBC News translation.
“Jeju Air deeply bows in apology to all those affected by the Muan Airport accident,” the airline wrote in an Instagram post. “Our first priority is to do everything possible to manage this incident. We sincerely apologize for causing concern.”
The US National Transportation Safety Board is aiding South Korea’s aviation investigation team with a probe into the cause of the crash, along with aircraft engine manufacturer CFM International. Two black boxes retrieved from the plane wreckage have been sent for analysis.
Jeju Air will be providing support to the families of those killed in the crash, Song Kyung-hoon, head of management support at the airline, said on Sunday. The aircraft was covered by a $1 billion insurance, Song added, according to South Korean news outlet Yonhap.
The airline denied the crash was caused by mechanical failures or a lack of safety precautions.
On Monday, another Jeju Air flight had to turn around after suffering a landing gear malfunction, according to Bloomberg.
Boeing’s B737-800 planes — a popular choice for South Korean budget airlines — have been in operation for nearly three decades.
“We are in contact with Jeju Air regarding flight 2216 and stand ready to support them,” Boeing told The Post in a statement. “We extend our deepest condolences to the families who lost loved ones, and our thoughts remain with the passengers and crew.”
The Jeju Air crash is the latest notch in Boeing’s yearslong safety scandal, starting with two deadly 737 Max crashes just five months apart that killed 346 people in 2018 in Indonesia and 2019 in Ethiopia.
In July, Boeing agreed to plead guilty to a single felony charge for deceiving regulators who approved the 737 MAX. The company would pay a $243.6 million fine, invest $455 million in compliance and safety programs and be placed on probation for three years as part of the plea deal.
Then a door plug flew off a Boeing 737 MAX 9 in midair in January, prompting the Department of Justice to launch a criminal investigation.
Boeing has been losing revenue as its reputation takes a hit. Its quarterly losses surged to $6 billion in October amid a strike by West Coast factory workers.
