Bad market for Boeing after Ethiopian Airlines crash as four countries halt fleet operations

Boeing may experience a major setback after its narrow-body airline 737 Max 8 in the Ethiopian Airlines fleet suffered deadly crash.

A member of the ground crew directs an Ethiopian Airlines plane at the Bole International Airport in Ethiopia's capital Addis Ababa, August 21, 2015.   REUTERS/Tiksa Negeri
  • Boeing 737 Max 8 in the Ethiopian Airlines fleet suffered deadly crash over the weekend, killing 149 passengers and 8 crew members.
  • 4 countries ground and suspend the use of Boeing 737 Max 8 jets across the world.
  • Aviation authorities investigate deadly crash.

Boeing, one of the world's largest airliner developers and manufacturers in the United States, may experience a major setback after its narrow-body airline, Boeing 737 Max 8 in the Ethiopian Airlines fleet suffered deadly crash over the weekend.

149 passengers and 8 crew members died on flight ET302 from Addis Ababa to Nairobi, according to the Ethiopian government.

This accident is Boeing 737 Max 8's second crash in less than 5 months, raising several safety questions and threatening the image of the US planemaker.

In October 2018, the same model of Boeing crashed off the coast of Indonesia on Lion Air Flight 610.

As at Monday morning, 4 countries have grounded and suspended the use of Boeing 737 Max 8 jets across the world. They are Ethiopian Airlines, China, the United States and the Cayman Islands.

In its bulletin released on Sunday, Ethiopia Airlines says it is going ahead with the grounding of all Boeing fleets pending investigation and to further take safety precaution.

UN monitoring the situation in Ethiopia

The United Nations on Monday said its team are actively monitoring the situation in Ethiopia.

“We received the news of the Ethiopian Airlines plane that crashed at 8:44 this morning with profound shock and dismay. The Boeing 737-800 crashed in Bishoftu, shortly after takeoff from Bole International Airport.

“As the UN family, we are deeply saddened by all the lives lost in this tragedy. We have lost numerous members of staff from UN agencies. We have also learnt of losses in other international organisations as well. Our thoughts and prayers are with the families, close friends and colleagues of the victims of this crash”

Boeing sends a technical team to Bishoftu, site of the crash

Boeing said it has sent a technical team to the site of the crash for support and technical assistance under the direction of the Ethiopia Accident Investigation Bureau and U.S. National Transportation Safety Board.

The US planemaker expressed sadness over the passing of the passengers and crew on Ethiopian Airlines Flight 302, a 737 MAX 8 airplane few minutes after takeoff.

Federal Aviation Administration (FAA), U.S State Department to investigate the crash

The Federal Aviation Administration said it is monitoring the situation and investigating the accident alongside the United States Department and National Transportation Safety Board, an independent U.S. government investigative agency responsible for civil transportation accident investigation with the Ethiopia aviation authority. 

The outcome of the investigation may jeopardise the market value of Boeing Air across the globe. In its fourth-quarter financial report, The Boeing Company reported revenue of $28.3 billion, GAAP earnings per share of $5.93 and core earnings per share of $5.48, all company records.

Dennis Muilenburg, Boeing Chairman, President and Chief Executive Officer said strong core operating performance and customer focus, drove record revenues and earnings.

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