China’s civil aviation regulator on Monday told domestic airlines to ground the Boeing 737 MAX 8 jets. The move was soon followed by Indonesia, Cayman Airways and Ethiopian Airlines, which said they were grounding the airliners temporarily, as reported by CNBC.
The groundings come as the flight data and voice recorders have been recovered from the site of the Ethiopia crash. With this being the second crash of a Boeing 737 Max 8 in just a few months, safety questions have been renewed, especially owing to clear weather and a new plane being involved in both crashes.
Boeing’s stock fell sharply, dragging down the Dow Jones Industrial Average, even though most of the companies on the board were up on the day. Boeing has a big influence on the Dow since the index is price-weighted and Boeing’s stock is the priciest in the group.
USA Today is reporting Boeing (BA) shares were down 11 percent in early trading Monday to $375.72. The stock had risen close to 30 percent over the past 12 months.
Investigation ramping up in Ethiopia
The U.S. National Transportation Safety Board (NTSB) has sent a team to Ethiopia to assist in the investigation. Officials have not yet determined the cause of the Ethiopian Airlines crash, but the flight had unstable vertical speed following takeoff, according to flight tracking website Flightradar24.
“Data from Flightradar24 ADS-B network show that vertical speed was unstable after take off,” the Swedish-based flight tracking organization said on its Twitter feed.
Boeing, on Monday, released a new statement saying it was in contact with customers and regulators and did not have a reason to give airlines new guidance on the planes. “Safety is our number one priority and we are taking every measure to fully understand all aspects of this accident, working closely with the investigating team and all regulatory authorities involved,” Boeing said in a statement. “The investigation is in its early stages, but at this point, based on the information available, we do not have any basis to issue new guidance to operators.”
The Boeing 737 Max 8 has been a popular plane, with the company delivering 350 MAX jets to airlines around the world since May 2017. The company also has orders for nearly 5,000 more of the Max jets.
Boeing was prepared to unveil its new 777X airliner on Wednesday, reports CNN. The new plane can carry as many as 425 passengers, and Boeing described it as “the largest, most efficient twin-engine jet” on the planet.
A Boeing spokesman said late Sunday that the company is postponing the 777X’s big reveal. He didn’t say when the event is now likely to take place but added that there are no other changes to the aircraft’s schedule.
