Boeing shares fall with the crash of a plane in China
Shares of Boeing’s US aircraft and its suppliers fell on Monday after a Boeing 737-800 crashed in the mountains of southern China, according to TradeNews. The plane, owned by East China Airlines, had 132 people on board.
Quoted from Reuters, The plane fell from a height after a sudden landing. Rescuers found no trace of survivors, media reported. The cause of the accident has not been determined yet. Boeing said it was working to get more information.
Flight 24 Radar reported that the crashed plane was 6 years old. Flight Radar 24 is a Swedish website that shows the location of passenger flights live and on a map. This site can show viewers the acceleration, altitude, and position of airports at any time. Chinese state media reported that 737 East China Airlines planes had landed after the incident. According to the Flight Radar website, there are 109 aircraft of this model in this airline.
This famous aircraft model is an old type of 737 MAX model, which is waiting for legal approval from China, the largest domestic aviation industry market in the world. The maximum capacity of this aircraft is 189 people and it is equipped with a CFM-56 engine. It is not yet clear whether the crashed plane had the same engine. Because the airlines are free to buy engines from other suppliers.
Stock market crash following plane crash
CFM engines are made in collaboration with General Electric and Safran France. Shares of General Electric fell 1 percent and Shares of France traveled 3 percent. Shares of Boeing fell 4.5 percent and shares of Chinese Airlines fell 9 percent. Suppliers of other parts of the aircraft also fell by one to four percent.
Some analysts believe that the crash should not affect the reaffirmation of the MAX model, which landed safely for three years after two deadly accidents in Indonesia and Ethiopia. But it is possible that the Chinese government will use this opportunity to delay the approval of these aircraft. Although it may not explicitly mention this.