Boeing falls after South Korea orders B737-800 inspection

Boeing shares have been down greater than 3% in late-morning buying and selling Monday, after South Korea ordered an inspection of all 737-800 planes — the mannequin concerned in a lethal Jeju Air crash over the weekend — operated by its home carriers.

Performing President Choi Sang-mok told the Transport Ministry to carry out an emergency safety inspection of the country’s entire airline operation system, whereas officers on the Ministry of Land, Infrastructure, and Transport, or MOLIT, stated they’d conduct a “complete particular inspection of the B737-800.”

Uncertainty surrounds the precise circumstances of the crash, which killed 179 of 181 individuals who have been on board the flight on Sunday. The aircraft landed with out the right gear deployed at South Korea’s Muan Worldwide Airport, skidded off the runway and smashed right into a wall, bursting into flames. The survivors have been two crew members who have been pulled from the wreckage.

In a Monday briefing, MOLIT stated the plane’s pilot had talked about a “fowl strike,” a couple of minutes after the airport’s management tower issued a fowl exercise warning. The pilot additionally notified the management tower of a “go-around,” referring to an aborted touchdown try, and declared “Mayday,” stated Yu Kyung-soo, director of aviation security coverage at MOLIT, in keeping with an NBC Information translation.

Two black bins have been retrieved from the plane and have been despatched for evaluation. The U.S. Nationwide Transportation Security Board is in the meantime main a group of U.S. investigators, together with the Federal Aviation Administration and Boeing, to help South Korea’s Aviation and Railway Accident Investigation Board with a probe into the crash. Engine producer CFM Worldwide, a three way partnership between GE Aerospace and France’s Safran Plane Engines, will even be concerned within the investigation.

MOLIT officers stated Monday they have been reviewing the concrete wall which the plane hit for its connection to the accident.

Additionally they stated they’d conduct an inspection of the B737-800.

The favored Boeing narrow-body plane has been in operation for almost three a long time, with improvement predating the U.S. manufacturer’s troubled 737 Max jets, a later iteration of the mannequin.

The B737-800 is extensively utilized by South Korean low-cost carriers, MOLIT stated Monday, with Jeju Air the largest operator with 39 jets. Different operators embrace T’method Air, Jin Air, Eastar Jet and Air Incheon, whereas flag provider Korean Air has two of the mannequin.

“We’ll study compliance with numerous rules, together with operational information, inspections, and upkeep carried out earlier than and after flights,” Ju Jong-wan, director of the Aviation Coverage Workplace at MOLIT, stated Monday, in keeping with the NBC Information translation.

“We plan to evaluation strengthening rules concerning fowl strikes, recognized as a possible explanation for the accident, particularly for brand new airports below building.”

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

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

“The mannequin and sort of plane has a really sturdy security file and over 200 airways around the globe have chosen to fly the Boeing 737-800 within the final 12 months,” Paul Charles, CEO and journey analyst at The PC Company, stated by electronic mail.

“The investigators might want to comb via each upkeep file regarding the 737-800s at Jeju Air to see if they provide up any additional clues as to why the plane’s touchdown gear didn’t come down.”

At a press briefing Sunday, head of the administration help workplace at Jeju Air, Tune Kyung-hoon, stated the airline would help the victims and their households, and that the plane was coated by a $1 billion insurance coverage, according to news site Yonhap.

Tune additionally denied that mechanical faults or insufficient security preparations performed a task within the crash.

“This crash will not be about any upkeep points. There will be completely no compromise relating to sustaining plane,” Tune stated.

Shares of Jeju Air hit an all-time low Monday, in keeping with FactSet information, and closed down 8.65%.

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