Boeing Shares fell greater than 2% on Monday after South Korea ordered an inspection of all of its domestic airlines' 737-800 planes – the model involved in a fatal Jeju Air crash over the weekend.
Acting President Choi Sang-mok called on the Transportation Ministry to conduct an emergency safety inspection of the country's entire air operations system, while officials on the Ministry of Land, Infrastructure and Transport (MOLIT) said they might conduct a “comprehensive special inspection” of the B737-800 .”
The exact circumstances of the crash, which killed 179 of 181 people, are uncertain on board the flight on Sunday. The plane landed at South Korea's Muan International Airport without proper equipment, skidded off the runway, hit a wall and burst into flames. The survivors were two crew members who were rescued from the rubble.
In a briefing on Monday, MOLIT said the plane's pilot mentioned a “bird strike” minutes after the airport's control tower issued a bird activity alert. The pilot also notified the control tower of a “go-around,” indicating an aborted landing attempt, and declared “mayday,” said Yu Kyung-soo, director of aviation safety policy at MOLIT, in accordance with a translation by NBC News.
Two black boxes were recovered from the aircraft and sent for evaluation. The US National Transportation Safety Board is now leading a team of American investigators, including the Federal Aviation Administration and Boeing, to assist South Korea's Aviation and Railway Accident Investigation Board investigate the crash. Engine manufacturer CFM International, a three way partnership between GE Aerospace and France's Safran Aircraft Engines, may even be involved within the investigation.
MOLIT officials said Monday that along with inspecting the 737-800s in South Korean airlines' fleet, they were also examining the concrete wall that the plane hit for a link to the accident.
Boeing's popular narrow-body aircraft has been in service for nearly three a long time, with development predating the US manufacturer's troubled 737 Max jets, a later version of the model. Aviation experts said it was unlikely that a design flaw played a task in Sunday's crash.
The Boeing 737-800 has a powerful safety record and is probably the most widely used aircraft, with about 4,400 aircraft in service, representing about 17% of the lively global jet fleet, in accordance with aviation data firm Cirium.
According to MOLIT, additionally it is widely utilized by South Korean low-cost airlines, with Jeju Air being the biggest operator with 39 jets. Other operators include T'way Air, Jin Air, Eastar Jet and Air Incheon, while Korean Air operates two of those models.
“We will check compliance with various regulations, including operational records, inspections and maintenance before and after flights,” Ju Jong-wan, director of the Aviation Policy Office at MOLIT, said on Monday, in accordance with NBC News translation.
“We plan to review stricter regulations regarding bird strikes, which have been identified as a potential cause of accidents, particularly for new airports under construction.”
A Boeing spokesperson told CNBC: “We are in contact with Jeju Air regarding Flight 2216 and stand ready to assist them. We extend our deepest condolences to the families who lost loved ones and our thoughts are with the passengers and crew.”
Local media reported that one other Jeju Air plane of the identical model returned to South Korea's Gimpo Airport shortly after takeoff on Monday after problems were reported with its landing gear.
“The model and aircraft type have a very good safety record and over 200 airlines around the world have chosen to use the Boeing 737-800 in the last year,” said Paul Charles, CEO and travel analyst at The PC Agency, via email Email .
“Investigators need to go through all of Jeju Air’s 737-800 maintenance records to see if they provide further clues as to why the aircraft’s landing gear failed.”
At a news conference on Sunday, Song Kyung-hoon, head of Jeju Air's management support office, said the airline would support the victims and their families and that the plane was backed by $1 billion in insurance. in accordance with the news site Yonhap.
Song also denied that mechanical failures or inadequate safety precautions played a task within the crash.
“This crash is not about maintenance issues. There can be absolutely no compromise when it comes to aircraft maintenance,” Song said.
Jeju Air shares hit an all-time low on Monday, closing down 8.65%, in accordance with FactSet.
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