Shares of Boeing (BA.US) are down nearly 5.00% pre-market following tragic news of a crash involving a Boeing 737-800 during landing in South Korea.
A Boeing 737-800 operated by South Korean airline Jeju Air crashed while attempting to land at Muan International Airport on Sunday morning, resulting in the deaths of 179 out of 181 people on board. The accident, South Korea's deadliest aviation disaster, occurred after the aircraft's landing gear failed, causing it to veer off the runway and collide with a concrete wall. The fuselage broke apart and caught fire, leaving only two survivors—a 22-year-old passenger and a 25-year-old crew member. The flight had originated in Bangkok and carried 173 South Korean passengers along with two Thai nationals. Authorities have recovered flight data and cockpit voice recorders for investigation.
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Open real account TRY DEMO Download mobile app Download mobile appAccording to fire department estimates, a bird strike may have caused the landing gear failure. The fire was extinguished 43 minutes after the crash, involving 80 firefighters and helicopters. In response, South Korea's Ministry of Land, Infrastructure, and Transport announced inspections of all Boeing 737-800 aircraft in the country, particularly as Jeju Air operates 39 of these jets. Boeing has expressed condolences and pledged support. Acting President Choi Sang-mok emphasized rescue efforts and the safety of responders during ongoing operations.
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Boeing has struggled in recent years. Looking at the chart compared to Airbus stock, the two companies were once closely correlated. However, their trends have diverged significantly since the COVID-19 pandemic.
Boeing faces serious financial challenges due to operational setbacks, safety concerns, and a prolonged workers’ strike.
Despite escalating crises, safety allegations, and ongoing federal investigations, Boeing remains vital to the global aviation industry as one of only two manufacturers of full-size jets, alongside Airbus. This duopoly continues to keep the company in a competitive market position.
Source: xStation 5
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