Boeing shares set to see $21 billion wiped off their value as firm POSTPONES launch of new 777X after China grounds ALL 96 of its 737 Max 8 planes following Ethiopian Airlines disaster that claimed 157 lives
An Ethiopian Airlines 737 MAX 8 plane crashed Sunday, killing all 157 on board
In October a 737 MAX 8 crashed in Indonesia, killing all 189 passengers on board
Civil Aviation Administration of China suspended all Boeing 737 planes Monday
Said its contacting Boeing, US Federal Aviation Administration to ensure safety
Official said no plan to follow suit as 737 MAX has stellar safety record in the US
Shares in Boeing are set to see $21 billion wiped off their value after the second crash in six months involving one of the firm's new aircraft.
The company announced today it would delay the launch of its new 777X jetliner in the wake of the Ethiopian air disaster that killed 157 people.
China also ordered Chinese airlines to ground all Boeing 737 MAX planes following the horrific Ethiopian Airlines crash yesterday.
The Ethiopian Airlines 737 MAX 8 bound for Nairobi crashed minutes after take-off on Sunday, killing all on board.
It was the second crash of the 737 MAX, the latest version of Boeing's workhorse narrowbody jet that first entered service in 2017.
In October, a 737 MAX 8 operated by Indonesian budget carrier Lion Air crashed 13 minutes after take-off from Jakarta on a domestic flight, killing all 189 passengers and crew on board.
The Civil Aviation Administration of China (CAAC) ordered all Boeing Co 737 MAX aircraft operations to be suspended by 6pm on Monday.
As a result of the double tragedy, Boeing shares are set to drop at least 9 per cent when markets open on Monday, wiping about $21.5 billion off the company.
Boeing sold 580 737s last year, which accounted for 72 per cent of the company's total deliveries.
Jasper Lawler, head of research at London Capital Group told Business Insider: 'This tragic incident will be a massive hurdle for Boeing to overcome.'
CAAC said in a statement it would notify airlines as to when they could resume flying the jets after contacting Boeing and the US Federal Aviation Administration (FAA) to ensure flight safety.
'Given that two accidents both involved newly delivered Boeing 737-8 planes and happened during take-off phase, they have some degree of similarity,' the CAAC said, adding that the order was in line with its principle of zero-tolerance on safety harzards. The 737 MAX 8 is sometimes referred to as the 737-8.
The cause of the Indonesian crash is still being investigated. A preliminary report issued in November, before the cockpit voice recorder was recovered, focused on airline maintenance and training and the response of a Boeing anti-stall system to a recently replaced sensor. It did not give a reason for the crash.
https://www.dailymail.co.uk/news/article-6793875/China-grounds-Boeing-737-Max-8-planes-following-Ethiopian-Airlines-crash.html