Al Root
Sunday, Jeju Air flight 2216 carrying 181 passengers and crew traveling from Thailand to South Korea crashed on landing, tragically killing most on board.
Investors should ready themselves with some context heading into a new week of trading.
The plane involved was a Boeing 737-800 jet. That isn't a 737 MAX jet, which is the model closely monitored by investors since two tragic MAX crashes grounded that jet worldwide between March 2019 and November 2020. The two MAX jets were relatively new and the problem was traced back to faulty flight control software.
The Jeju plane was manufactured in 2009, and Jeju started flying it in 2017. The airline, in a news release, said the regular inspections had been completed before takeoff.
"First of all, I would like to bow my head and apologize to all those who have supported Jeju Air," said CEO Kim Lee-bae.
"We are in contact with Jeju Air regarding flight 2216 and stand ready to support them," said Boeing in an emailed statement. "We extend our deepest condolences to the families who lost loved ones, and our thoughts remain with the passengers and crew."
Korean aviation regulators couldn't be reached for comment.
Jeju is a relatively small airline that flies 38 Boeing 737-model jets. Most are 737-800 models. It also operates two 737 MAX jets.
The 737-800 was introduced in the late 1990s, and Boeing has delivered more than 5,000 of the planes. Its safety record compares favorably to older jet models and to similar products from Airbus.
Since Boeing's MAX problems, investors have paid close attention to catastrophic accidents involving Boeing jets. In March 2022, a China Eastern Airlines 737-800 crashed, tragically killing all on board. That plane was delivered in 2015, and equipment failure hasn't been cited as a root cause.
Still, that crash might moved Boeing stock a little. Shares fell about 8% in the month after the incident. Most stocks were down, too. The S&P 500 dropped about 4% over the same span. Airbus shares fell about 5%.
Coming into Monday trading, Boeing stock was down about 31% for this year and off about 27% since an emergency door plug blew out of a 737 MAX 9 jet on Jan. 5. That accident was tied to poor manufacturing quality.
Write to Al Root at allen.root@dowjones.com
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December 29, 2024 12:20 ET (17:20 GMT)
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