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11-03-2019, 07:09 PM.
Post: #1
Ethiopia Joins China in Grounding Boeing 737 Max Jets After Crash
* Shares fall sharply as China, Indonesia ground 737 Max flights
* Ethiopian Airlines disaster killed all 157 people on board

Bloomberg News
March 11, 2019, 6:28 AM GMT+7 Updated on March 11, 2019, 5:20 PM GMT+7

Pressure on Boeing Co. escalated after China and Indonesia decided to ground flights of the U.S. planemaker’s newest 737 jet in response to the second deadly crash of the best-selling narrow-body in five months.

Boeing shares fell sharply in early U.S. trading, a day after Ethiopian Airlines Flight 302 crashed and killed all 157 people on board. Africa’s biggest carrier also decided not to use its 737 Max 8 planes until further notice. China ordered its carriers to ground all 96 of the aircraft, while Indonesia’s air safety regulator said it will halt flights involving the Boeing planes starting Tuesday.

For Boeing, the latest disaster soon drew comparisons to a Lion Air crash in Indonesia that killed 189 people, pushing the Chicago-based planemaker a step closer to a crisis. A blanket grounding of the 737 Max, which generates almost one-third of the company’s operating profit, in China also raised the specter of other countries following suit. While Indonesia’s air safety regulator also ordered local airlines keep the 737 on the ground, South Korea began a special inspection of the aircraft.

“The B737 Max design is dangerously flawed,” said Mohan Ranganathan, a former commercial pilot and an aviation safety consultant based in the southern India city of Chennai. "There is a definite similarity between Lion Air and Ethiopian Airlines Max crashes."

In Europe, regulators said they’re in contact with their U.S. counterparts as well as Boeing, but that it’s too soon to take action.

Shares of Boeing sank 9.6 percent to $382.11 in early U.S. trading. Safran SA, which makes engines for the Max in the CFM International venture with General Electric Co., was down 1.8 percent as of 11:15 a.m. in Paris.

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