In This Article:
Almost $8bn (£6.4bn) has been wiped off the value of Boeing as the embattled plane maker faces an investigation into the deadliest air disaster in South Korean history.
The company’s shares plunged by as much as 6pc after authorities launched an investigation of all of the Boeing 737-800s – the model involved in the Jeju Air crash – operated by South Korea’s domestic carriers.
It knocked $7.9bn off the US giant’s value, which previously stood at $135bn, and caps off a torrid year for the company.
The losses pared later on Monday but still left Boeing nursing a multi-billion dollar hit as Wall Street digested the news.
All 175 passengers and four of the six crew aboard a Jeju Air Boeing 737-800 were killed in the crash on Sunday.
The aircraft landed on its belly before skidding along the runway and crashing into a wall at Muan International Airport.
Beforehand, the pilots had warned air traffic control that the aircraft had suffered a bird strike and issued a mayday warning.
They are thought to have abandoned a first landing attempt before coming in for a second try.
However, experts have raised several questions about the disaster, including why the plane appeared to be travelling so fast and why its landing gear did not appear to be lowered as it hit the tarmac.
Investigators are examining the possible impact of bird strikes, whether the aircraft’s control systems were disabled, and the apparent rush by the pilots to attempt a landing soon after declaring an emergency as possible factors in the crash, authorities said on Monday.
Choi Sang-mok, South Korea’s acting president, said his country’s transport ministry would “conduct an emergency safety inspection of the entire aircraft operation system to prevent recurrence of aircraft accidents.”
Boeing has said it is in contact with Jeju Air and ready to support the airline.
The jet’s flight data recorder was recovered but appeared to have sustained some damage and it was not yet clear whether it could be properly analysed, officials said.
Under global aviation rules, South Korea will lead the civil investigation into the crash. It will also involve the US National Transportation Safety Board, since the plane was designed and built by Boeing in America.
The Boeing 737-800 jet involved in the crash is an aviation industry workhorse that is widely seen as one of the most reliable aircraft in the market, with more than 4,000 in service globally.
It predates Boeing’s troubled 737 Max jets, a later iteration, which were involved in crashes in Indonesia and Ethiopia that were just five months apart.