Boeing falls after South Korea orders inspection of its B737-800

Boeing shares fell greater than 2% on Monday, after South Korea ordered an inspection of all 737-800 planes – the mannequin concerned in a deadly Jeju Air crash over the weekend – operated by its nationwide airways .

Appearing President Choi Sang-mok asked the Ministry of Transportation to carry out an emergency safety inspection of the entire operating system of the country’s airlineswhereas officers from the Ministry of Land, Infrastructure and Transport, or MOLIT, mentioned they’d perform a “thorough particular inspection of the B737-800”.

Uncertainty surrounds the precise circumstances of the accident, which claimed the lives of 179 of the 181 individuals who died. on board the flight on Sunday. The aircraft landed with out correct gear deployed at South Korea’s Muan Worldwide Airport, skidded off the runway and crashed right into a wall, catching hearth. The survivors had been two crew members who had been pulled from the wreckage.

In a briefing Monday, MOLIT mentioned the aircraft’s pilot spoke of a “chook strike” minutes after the airport management tower issued a warning of chook exercise. The pilot additionally knowledgeable the management tower of a “go-around,” referring to an aborted touchdown try, and declared “Mayday,” mentioned Yu Kyung-soo, director of aviation security coverage at MOLIT, in response to an NBC Information translation.

Two black bins had been recovered from the aircraft and despatched for evaluation. The U.S. Nationwide Transportation Security Board is main a staff of U.S. investigators, together with the Federal Aviation Administration and Boeing, to help South Korea’s Air and Rail Accident Investigation Bureau in its investigation into the ‘accident. Engine producer CFM Worldwide, a three way partnership between GE Aerospace and France’s Safran Plane Engines, may even be concerned within the investigation.

MOLIT officers mentioned Monday they had been inspecting the concrete wall the aircraft hit to find out its connection to the crash, along with inspecting 737-800s in South Korea’s airline fleet.

Boeing’s well-liked narrow-body plane has been in service for almost three many years and its growth predates the American manufacturer’s 737 Max planes in difficultya later iteration of the mannequin. Aviation consultants mentioned it was unlikely a design flaw performed a job in Sunday’s crash.

The Boeing 737-800 has a powerful security file and is without doubt one of the most used aircraft with about 4,400 in service, or about 17% of the world’s lively jet fleet, in response to aviation knowledge agency Cirium.

It is usually generally utilized by South Korean finances airways, MOLIT mentioned, with Jeju Air the most important operator with 39 jets. Different operators embody T’manner Air, Jin Air, Eastar Jet and Air Incheon, whereas nationwide provider Korean Air has two fashions of this mannequin.

“We’ll assessment compliance with varied laws, together with operational data, inspections and upkeep carried out earlier than and after flights,” Ju Jong-wan, director of MOLIT’s aviation coverage workplace, mentioned on Monday, in response to the interpretation of NBCNews.

“We plan to assessment the strengthening of laws relating to chook strikes, recognized as a possible reason behind the accident, significantly for brand spanking new airports beneath building.”

A Boeing spokesperson informed CNBC: “We’re involved with Jeju Air relating to Flight 2216 and stand able to help them. We prolong our deepest condolences to the households who misplaced family members, and our ideas stay with passengers and crew.”

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

“The mannequin and kind of plane has an excellent security file and greater than 200 airways all over the world selected to fly the Boeing 737-800 final 12 months,” Paul mentioned by electronic mail. Charles, CEO and Journey Analyst at The PC Company. .

“Investigators might want to assessment all upkeep data referring to Jeju Air’s 737-800s to see if they provide additional clues as to why the aircraft’s touchdown gear didn’t descend.”

At a press briefing on Sunday, Jeju Air administration help workplace chief Track Kyung-hoon mentioned the airline would help the victims and their households, and that the aircraft was coated by insurance coverage of a billion {dollars}. according to the information site Yonhap.

Track additionally denied that mechanical defects or insufficient security preparations performed a job within the accident.

“This accident shouldn’t be associated to a upkeep subject. There will be completely no compromise in sustaining the plane,” Track mentioned.

Jeju Air shares hit an all-time low on Monday, in response to FactSet, and closed down 8.65%.

— Yeo Boon Ping of CNBC and Leslie Josephs contributed to this story.