Shares in Boeing fell sharply yesterday after one of its 737-800 jets crashed in southern China with 132 people on board, renewing safety concerns.
The American aerospace group said it was working to collect more information around what caused the aircraft to descend suddenly from cruising altitude. Local media said there had been no sign of survivors.
The China Eastern Airlines service had been travelling between the southern Chinese cities of Kunming and Guangzhou when it crashed. The carrier said an investigation had been launched.
Boeing’s shares closed down $6.93, or 3.6 per cent, at $185.90 in New York last night. The 737-800 NG has been in service for almost three decades. It is part of the company’s 737 family, which is the world’s most-flown commercial aircraft series.
China Eastern said it would ground its 737-800 jets from today.
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The NG series preceded the 737 Max, which was grounded globally for almost two years after two crashes killed 346 people. It remains grounded in China.
Founded in 1916, Boeing is based in Chicago. It is the world’s largest aerospace manufacturer, making commercial jets, military aircraft, missiles and space technology. Its market value stands at almost $108 billion.
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Boeing said: “Our thoughts are with the passengers and crew of China Eastern Airlines Flight MU 5735. We are working with our airline customers and are ready to support them.”
It added that it was “in contact” with American regulators “and our technical experts are prepared to assist with the investigation led by the Civil Aviation Administration of China”.
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Boeing reported its first quarterly profit in almost two years last summer as its financial recovery from two separate crises gathered pace.
The fatal crashes, of Lion Air Flight 610 in October 2018 and Ethiopian Airlines Flight 302 the following March prompted all Max jets worldwide to be grounded in spring 2019. As the company sought to rebuild confidence in the safety of its 737 jets, the Covid pandemic then suppressed demand for aircraft as stringent restrictions knocked international travel.
China Eastern, based in Shanghai, was founded in 1988 and is one of the country’s largest airlines. It has some 730 aircraft in its fleet and a market value of about $13 billion. Shares in the company closed down 6.3 per cent at $17.83 in New York.
