Boeing falls after South Korea orders B737-800 inspection

Boeing Shares fell more than 4% in morning trading on Monday after South Korea ordered an inspection of all 737-800 planes – the model affected in last weekend’s deadly Jeju Air crash – operated by its domestic carriers.

Acting President Choi Sang Mok instructed the Ministry of Transport to carry out an emergency safety check of the entire system of operation of the country’s airlineswhile officials from the Ministry of Lands, Infrastructure and Transport, or MOLIT, said they would 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 without the correct gear at South Korea’s Mueang International Airport, skidded off the runway and crashed into a wall, bursting into flames. Two crew members who were pulled from the wreckage survived.

At a briefing on Monday, MOLIT said the plane’s pilot mentioned a “bird strike” minutes after the airport’s control tower issued a warning about bird activity. The pilot also informed the control tower of a “go-around,” referring to an aborted landing attempt, and declared a “Mayday,” Yoo Kyung-soo, MOLIT’s director of aviation security policy, said, according to a translation by NBC News.

Two black boxes were removed from the plane and sent for analysis. Meanwhile, the U.S. National Transportation Safety Board is leading a team of U.S. investigators, including the Federal Aviation Administration and Boeing, to help South Korea’s Air and Railroad Accident Investigation Board investigate the crash. Engine maker CFM International, a joint venture between GE Aerospace and France’s Safran Aircraft Engines, will also be involved in the investigation.

MOLIT officials said Monday that they are examining the concrete wall the plane hit for any connection to the crash.

They also said they would be inspecting the B737-800.

Boeing’s popular narrow-body aircraft has been in service for nearly three decades, with development proceeding earlier problem aircraft 737 Max of the American manufacturerlater iteration of the model.

The B737-800 is widely used by South Korean low-cost carriers, MOLIT said on Monday, with Jeju Air being the largest operator with 39 aircraft. Other operators include T’way Air, Jin Air, Eastar Jet and Air Incheon, while national carrier Korean Air has two models.

“We will examine compliance with various regulations, including operational records, inspections and maintenance conducted before and after flights,” MOLIT’s director of aviation policy Joo Jung-wan said Monday, according to a translation by NBC News.

“We plan to review the strengthening of regulations regarding bird strikes identified as a potential cause of an accident, particularly for new airports under construction.”

A Boeing spokesperson told CNBC, “We are in contact with Jeju Air regarding Flight 2216 and are ready to support them. Our deepest condolences go out to the bereaved families and our thoughts are with the passengers and crew.”

This is reported by local media that another Jeju Air plane of the same model returned to South Korea’s Gimpho airport shortly after takeoff on Monday after reporting problems with its landing gear.

“The aircraft model and type has a very strong safety record, with more than 200 airlines worldwide choosing to fly the Boeing 737-800 last year,” Paul Charles, CEO and travel analyst at The PC Agency, said by email. .

“Investigators will need to comb through all maintenance records relating to Jeju Air’s 737-800 to see if they offer any further clues as to why the plane’s landing gear did not descend.”

At a press briefing on Sunday, Jeju Air’s head of management support, Son Kyung-hoon, said the airline would support the victims and their families and that the plane was insured for $1 billion. according to the news site Yonhap.

Song also denied that mechanical failure or inadequate safety measures played a role in the crash.

“This disaster is not due to maintenance issues. There can be absolutely no compromises when it comes to aircraft maintenance,” Song said.

Shares of Jeju Air hit an all-time low on Monday, falling 8.65%, according to FactSet data.

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