According to RT news agency, shares of aircraft manufacturer Boeing lost more than 12% in trading this morning, March 11. This is Boeing's biggest drop in nearly 20 years since September 17, 2001, a few days after the September 11 terrorist attacks in the US.
Boeing shares plummeted after a plane crash in Ethiopia that killed 157 people. The drop in Boeing, the highest-priced stock in the Dow Jones, caused the market to lose 300 points on the morning of March 11. In the afternoon session, the stock recovered slightly, after falling at its lowest point by more than 13%.
Earlier, in pre-market trading, Boeing shares lost 10%.
This is the result of the second aviation disaster in the past 4 months of the Boeing 737 Max 8 aircraft. This is Boeing's newest aircraft model, which the company introduced its first flight less than 2 years ago.
Scene of plane crash in Ethiopia
According to recent reports, Boeing has delivered more than 350 737 MAX aircraft and has more than 5,000 on order. Many airlines in countries around the world have ordered this aircraft from Boeing. In 2018, 3/4 of the orders of this airline were for the 737 series. And this company plans to produce 59 new aircraft of this series in 2019.
The sharp drop in stock price is an indication that Boeing is facing a serious crisis.
If March 11 trading closes with Boeing shares down more than 10.4%, it will be the company's worst day since September 17, 2011, the day markets reopened after the September 11 terrorist attacks.
Not only Boeing shares, but also its suppliers were affected by the accident. Spirit AeroSystems shares fell 8% while United Technologies lost 1%. Even Southwest Airlines, after tweeting that it continued to "have confidence in the safety of its aircraft", including 34 737 Max 8s, lost 2%.
The Ethiopian Airlines plane that crashed on March 10 was delivered by Boeing in November 2018. It was one of six Boeing 737 Max 8s that the airline was operating.
Faced with two consecutive aviation incidents that killed more than 300 people within four months, Boeing has encountered strong reactions from many international airlines.
Following the latest Ethiopian Airlines crash, more than 10 airlines have temporarily grounded their Boeing 737 MAX 8 fleets. In addition to Ethiopia, China is one of the first countries to temporarily ban airlines from using this aircraft model. This is one of the countries with the largest 737 Max 8 fleet with 97 aircraft.
Air China suspends operations of all Boeing 737 MAX aircraft
Indonesia, Mongolia, Morocco and the Cayman Islands are the next countries and territories to temporarily suspend operations of Boeing 737 MAX 8 aircraft. Cayman Islands Airlines and Ethiopian Airlines have both suspended the use of the Boeing 737 Max 8 aircraft.
Most recently, the Indonesian Ministry of Transport also requested a ban on the operation of this aircraft. This move is of particular concern to this country's airline, Lion Air, which was the victim of an air accident that killed 189 people. Lion Air alone is operating 8 737 Max aircraft.
The aviation incident has forced Boeing to postpone the launch of its new generation 777X jetliner. The incident also threatens to damage the US airline's reputation regarding safety issues.
