- A second Boeing 737 Max Jet has crashed less than six months after Lion Air crash
- Several airlines have now grounded the use of the model while investigations are ongoing
On March 10, 2019, Boeing built Ethiopian Airlines flight 302 crashed. The pilots had reported some technical issues to flight controllers and barely six minutes after takeoff, the fight plummeted and crashed just outside the Ethiopian capital of Addis Ababa.
News reports began pouring in from around the world; there were no survivors among the 157 aboard the flight, a reason for the crash had not been determined and so on. One detail, however, stuck out like a sore thumb in the midst of all of this, which was the model of the plane- a 737 Max jet. This is because, back in October 2018, a similar crash took place in Indonesia where a Lion Air crash of the exact same model killed 189 people.
Stock market reacts
While prayers and condolences came in from across the globe, the markets will likely be quick to respond to a Boeing plane model experiencing two crashes in roughly six months of each other.
As of close of trading on Friday, March 8, 2019, Boeing had a valuation of $239 billion and traded at $422 per share. When trading started Monday a flash crash brought it down to $380, although it soon recovered to just under $400.
The Boeing 737 Max jet was a resounding success upon its release, with 350 having been sold by the end of January 2019 and Boeing reportedly having up to 5,000 in orders.
Flights cancelled around the world
With this new development, the future of the jet is in question as several airlines such as Ethiopian Airways and Cayman airlines grounding the use of any planes of that model. China has also done the same.
Like all high profile air disasters, the Ethiopian airlines crash will not only make headlines but hopefully make a change as well.
Of course, it will take a few weeks or months before the final report on the cause of the crash is determined, but should it be noted that if it was due to an equipment failure similar to that experienced on the Lion Airways crash, it could mean serious losses for Boeing from not only the scrapping of the 737 Max jet but also the lawsuits that will inevitably come their way.
The quick response from the airline industry to ground the use of the model until further notice is, however, an encouraging sign, though only time will tell if this is a coincidence or a fault on the part of Boeing.