Jeju Air crash: Boeing shares fall after South Korea orders 737-800 inspections

Boeing Shares fell more than 2 percent on Monday, after South Korea ordered inspections of all 737-800 planes — the model involved in a fatal Jeju Air crash over the weekend — operated by its domestic carriers. .

Acting President Choi Sang Mok asked the Ministry of Transport to conduct an emergency safety inspection of the entire airline operation system of the country.While officials from the Ministry of Lands, Infrastructure, and Transport, or MOLIT, said they would conduct a “comprehensive special inspection of the B737-800.”

There is uncertainty about the exact circumstances of the crash, which killed 179 of 181 people Aboard the flight on Sunday. The plane landed at South Korea’s Moan International Airport without the correct gear, skidded off the runway and crashed into a wall, bursting into flames. The only survivors were two crew members who were pulled from the wreckage.

In Monday’s briefing, MOLIT said the plane’s pilot mentioned a “bird strike” minutes after the airport’s control tower issued a bird activity warning. Yoo Kyung-soo, director of aviation safety policy at MOLIT, said the pilot notified the control tower of a “go-around,” referring to the failed landing attempt, and a “mayday,” according to a translation by NBC News. announced.

Two black boxes have been recovered from the plane and have been sent for analysis. Meanwhile, the US National Transportation Safety Board is leading a team of US investigators, including the Federal Aviation Administration and Boeing, to assist South Korea’s Aviation and Railway Accident Investigation Board in investigating the crash. do 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 they are examining the concrete wall the plane hit for connection to the crash, in addition to inspecting the 737-800s in South Korean Airlines’ fleet.

The popular Boeing narrow-body aircraft has been in operation for nearly three decades, with predictable growth The US manufacturer’s 737 MAX jets are troubled.subsequent iterations of the model. Aviation experts said Sunday’s crash was unlikely to involve a design flaw.

The Boeing 737-800 has a strong safety record and this is one of them. Most used aircraft About 17 percent of the active global jet fleet, with about 4,400 in service, according to aviation data firm Serium.

It is also commonly used by South Korean low-cost carriers, MOLIT said, with Jeju Air being the largest operator with 39 jets. Other operators include T’way Air, Jin Air, Eastar Jet and Air Incheon, while flagship Korean Air has two models.

“We will review compliance with various regulations, including operational records before and after flights, inspections and Care.”

“We intend to review the robustness 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 are ready to assist them. We extend our deepest condolences to the families who lost their loved ones. lost, and our thoughts are with the passengers and crew.”

Local media reported. That another Jeju Air plane of the same model returned to South Korea’s Gimpo airport shortly after takeoff on Monday after reporting problems with its landing gear.

“The aircraft model and type has a very strong safety record and more than 200 airlines worldwide flew the Boeing 737-800 last year,” Paul Charles, CEO and travel analyst at PCAgency, said via email. What has been chosen.” .

“Investigators will need to search all maintenance records related to the 737-800s at Jeju Air to see if they offer any further clues as to why the plane’s landing gear did not come down.”

At a press briefing on Sunday, Song Kyung-hoon, head of the management support office at Jeju Air, said the airline would support the victims and their families, and that the plane was covered by $1 billion in insurance. , According to the news site Yonhap

Tsang also denied that mechanical faults or inadequate safety preparations contributed to the accident.

“This accident is not related to any maintenance issues. There is absolutely no compromise when it comes to aircraft maintenance,” Song said.

Shares of Jeju Air hit an all-time low on Monday, closing down 8.65 percent, according to FactSet.

– CNBC’s Yeo Bonping and Leslie Josephs Contributed to this story.