Boeing shares fell sharply after a 737-800 Boeing aircraft carrying over 100 people crashed in southern China’s mountains.
China Eastern Airlines Flight with 132 passengers onboard vanished from radar while on route to Guangzhou the capital of Guangdong Province.
Local media reported that no survivors were found.
After the news broke, the shares of the troubled aerospace company plunged nearly 10%. However, they settled 3.6% lower for the day. This wiped out billions of dollars from the company’s market capitalization.
The cause of the crash is unknown at this time. Air accident investigations can take many years.
Unverified footage showed a plane almost falling vertically from the air.
Boeing Chief Executive Dave Calhoun informed employees Monday that the company had provided full support to its technical experts during the investigation into the crash.
In an email to employees, he stated that he was not satisfied with what Boeing had to say about the investigation. It is being conducted by the Civil Aviation Administration of China.
Mr Calhoun stated: “Trust us that we will do everything possible to support our customer during this difficult time. We will be guided by our commitment safety, transparency and integrity at all stages.”
Boeing has been plagued with regulatory and legal problems in recent years.
The Boeing 737-800 was the predecessor of the 737 MAX. This aircraft model was banned in China and dozens other countries for three years after two fatal crashes that occurred just a few months apart. Chinese regulators recently permitted it to be restored to service.
After an 18-month investigation into the Boeing 737 MAX crash in Ethiopia and another in Indonesia that killed 346 people, a “horrific culmination” of failures by the company and regulators was identified.
The US House of Representatives transportation and infrastructure committee has released a highly critical report on the aerospace company. It continues to work to return the 737 MAX planes back to the skies after they were all grounded in February 2019.
After official accident reports blaming flight control software for both crashes, the report focused on Boeing’s development activities and FAA scrutiny.
The FAA was accused of withholding critical information from pilots and the watchdog, and declared that it “failed” to ensure safety for the traveling public.