- Boeing stock dropped by over 10 percent on Monday, March 11, following a deadly plane crash the day before.
- A Boeing 737 Max 8 plane crashed shortly after takeoff, killing more than 150 people onboard.
- This is Boeing’s second fatal crash since late 2018, when a Lion Air flight went down.
Boeing stock fell on March 11 following a fatal crash involving one of its 737 Max models. A Boeing 737 Max 8 crashed minutes after taking off the runway from Addis Ababa, the capital of Ethiopia, Bloomberg reported.
Boeing Co. (BA) shares dropped as much as 11 percent during early trading. However, premarket trading hours saw the stock fall even further at a 9 percent drop. Furthermore, this drop affects the Dow Jones Industrial Average as a whole; Bloomberg interviewed a market strategist who said, “[Boeing] has been responsible for about a third of the gains as markets recovered since the December low.”
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Second Fatal Plane Crash for New Boeing 737
More than 150 people lost their lives on March 10. This is the second fatal plane crash in several months involving Boeing’s 737 Max 8 model. The Ethiopian Airlines accident has left many questioning the plane’s safety. The first fatal crash involving the Max 8 model happened when a Lion Air flight crashed off of Indonesia in October 2018.
“It’s highly suspicious,” Mary Schiavo, a CNN aviation analyst and the former inspector general of the U.S. Transportation Department, told CNN. “Here we have a brand-new aircraft that’s gone down twice in a year. That rings alarm bells in the aviation industry, because that just doesn’t happen.”
The accident prompted multiple countries, including China and Ethiopia, to ground flights involving the 737 Max 8, which likely contributed to Boeing Co.’s stock shock.
Focus on the Maneuvering Characteristics Augmentation System
The aerospace company unveiled the 737 Max 8 in 2017 as a fuel-efficient variant of its 737 model. One of the focuses on the first fatal 737 Max 8 crash involving a Lion Air flight in October 2018 was on the Maneuvering Characteristics Augmentation System.
“All pilots should have been trained on that function after Lion Air,” Schiavo told CNN. “Boeing did something very unusual for any manufacturer — it sent out an emergency bulletin and told all airlines to make sure they trained the pilots in the shut-off procedure.”
The Boeing 737 Max is the company’s top-selling aircraft, according to CNBC.
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