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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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10-04-2019, 12:49 PM.
Post: #2
RE: Boeing
Boeing shareholders sue over 737 MAX crashes, disclosures

Jonathan Stempel
APRIL 10, 2019 / 6:56 AM / UPDATED 5 HOURS AGO

(Reuters) - Boeing Co’s legal troubles grew on Tuesday as a new lawsuit accused the company of defrauding shareholders by concealing safety deficiencies in its 737 MAX planes before two fatal crashes led to their worldwide grounding.

The proposed class action filed in Chicago federal court seeks damages for alleged securities fraud violations, after Boeing’s market value tumbled by $34 billion within two weeks of the March 10 crash of an Ethiopian Airlines 737 MAX.

Chief Executive Dennis Muilenburg and Chief Financial Officer Gregory Smith were also named as defendants.

Boeing spokesman Charles Bickers had no immediate comment.

According to the complaint, Boeing “effectively put profitability and growth ahead of airplane safety and honesty” by rushing the 737 MAX to market to compete with Airbus SE, while leaving out “extra” or “optional” features designed to prevent the Ethiopian Airlines and Lion Air crashes.

It also said Boeing’s statements about its growth prospects and the 737 MAX were undermined by its alleged conflict of interest from retaining broad authority from federal regulators to assess the plane’s safety.

Richard Seeks, the lead plaintiff, said Boeing’s compromises began to emerge after the Ethiopian Airlines crash killed all 157 onboard, five months after the Lion Air crash killed 189.

Seeks said he bought 300 Boeing shares in early March, and sold them at a loss within the last two weeks. The lawsuit seeks damages for Boeing stock investors from Jan. 8 to March 21.

Shareholders often file lawsuits accusing companies of securities fraud for concealing material negative information that causes the stock price to decline upon becoming public.

Chicago-based Boeing faces many other lawsuits over the crashes, including by victims’ families and by participants in its employee retirement plans.

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