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The Boeing (NYSE:BA) stock lost 5% on Monday premarket trading following South Korea probe into Boeing's B737-800 planes. It is the model involved in a fatal incident of Jeju Air that killed 179 of total 181 passengerson Sunday.
Joo Jong-wan, the director of aviation policy at the MOLIT (Ministry of Land Infrastructure and Transport) explained the bird strike that caused the incident, The pilot declared mayday after issuing the bird strike alert.
Nevertheless, Kim E-bae as the CEO of Jeju Air hasn't confirmed nor denied bird strike as the main cause of the crash and his management support head argued that the crash is not about maintenance issues.
The MOLIT under acting President Choi Sang-Mok's order carried out the comprehensive special inspection to Boeing's B737-800 planes and pulled down the shares of Boeing 5% lower on premarket trading.
Investors anticipate the incident to cause an impact on Boeing's operation and financial performance. While the investigation of this tragic incident continues, to date, Boeing standby to support We are in contact with Jeju Air regarding flight 2216 and stand ready to support them.
This article first appeared on GuruFocus.