Boeing falls as South Korea orders B737-800 inspection

Boeing shares dropped practically 5% in premarket buying and selling Monday, after South Korea ordered an inspection of all B737-800 planes, the mannequin concerned in a lethal Jeju Air crash over the weekend.

Performing President Choi Sang-mok told the transport ministry to carry out an emergency safety inspection of the country’s entire airline operation system, whereas officers on the Ministry of Land, Infrastructure, and Transport (MOLIT) stated they might conduct a “complete particular inspection of the B737-800.”

New York-listed shares of Boeing had been down 4.7% in premarket buying and selling earlier than paring losses to commerce 4% decrease as of 6:10 am ET.

Uncertainty surrounds the precise circumstances of the crash, which killed 179 of 181 individuals who had been on board the flight on Sunday. The aircraft landed with out the proper gear deployed at South Korea’s Muan Worldwide Airport, skidded off the runway and smashed right into a wall earlier than bursting into flames. The survivors had been two crew members who had been pulled from the wreckage.

In a Monday briefing, MOLIT stated the plane’s pilot had talked about a “hen strike,” a couple of minutes after the airport’s management tower issued a hen exercise warning. The pilot additionally notified the management tower of a “go-around,” referring to an aborted touchdown try, and declared “Mayday,” stated Yu Kyung-soo, director of aviation security coverage at MOLIT, in keeping with an NBC Information Translation.

Two black packing containers had been retrieved from the plane and have been despatched for evaluation. The U.S. Nationwide Transportation Security Board is in the meantime main a crew of U.S. investigators, together with the Federal Aviation Administration and Boeing, to help South Korea’s Aviation and Railway Accident Investigation Board with an investigation into the crash.

MOLIT officers stated Monday they had been reviewing the concrete wall which the plane hit for its connection to the accident.

Additionally they stated they might conduct a “complete particular inspection of the B737-800 mannequin.”

The favored Boeing narrowbody plane has been in operation for practically three a long time, with growth predating the U.S. manufacturer’s troubled B737-Max jets, a later iteration of the mannequin.

The B737-800 is extensively utilized by South Korean low-cost carriers, MOLIT stated Monday, with Jeju Air the largest operator with 39 jets. Different operators embrace T’manner Air, Jin Air, Eastar Jet and Air Incheon, whereas flag service Korean Air has two of the mannequin.

“We are going to study compliance with varied laws, together with operational information, inspections, and upkeep performed earlier than and after flights,” Ju Jong-wan, director of the Aviation Coverage Workplace at MOLIT, stated Monday, in keeping with the NBC Information translation.

“We plan to assessment strengthening laws relating to hen strikes, recognized as a possible reason behind the accident, particularly for brand new airports beneath development.”

CNBC has contacted Boeing for remark.

Local media reported that one other Jeju Air plane of the identical mannequin returned to South Korea’s Gimpo Airport shortly after takeoff on Monday after reporting points with its touchdown gear.

At a press briefing on Sunday, head of the administration assist workplace at Jeju Air, Tune Kyung-hoon, stated the airline would assist the victims and their households, and that the plane was coated by a $1 billion insurance coverage, according to news site Yonhap.

Tune additionally denied that mechanical faults or insufficient security preparations performed a task within the crash.

“This crash will not be about any upkeep points. There will be completely no compromise in terms of sustaining plane,” Tune stated.

Shares of Jeju Air hit an all-time low Monday, in keeping with FactSet information, and closed 8.65% decrease.

— CNBC’s Yeo Boon Ping contributed to this story.