Jeju Air crash: Boeing falls 4% in premarket as South Korea orders B737-800 inspection

Boeing shares dropped practically 5% in premarket buying and selling Monday, after South Korea ordered an inspection of all B737-800 planes, the mannequin concerned in a lethal Jeju Air crash over the weekend.

Acting President Choi Sang-mok told the transport ministry to carry out an emergency safety inspection of the country’s entire airline operation system, whereas officers on the Ministry of Land, Infrastructure, and Transport (MOLIT) mentioned they’d conduct a “complete particular inspection of the B737-800.”

New York-listed shares of Boeing have been down 4.7% in premarket buying and selling earlier than paring losses to commerce 4% decrease as of 6:10 am ET.

Uncertainty surrounds the precise circumstances of the crash, which killed 179 of 181 individuals who have been on board the flight on Sunday. The airplane landed with out the proper gear deployed at South Korea’s Muan International Airport, skidded off the runway and smashed into an exterior wall earlier than bursting into flames. The survivors have been two crew members who have been pulled from the wreckage.

In a Monday briefing, MOLIT mentioned the plane’s pilot had talked about a “hen strike,” a couple of minutes after the airport’s management tower issued a hen exercise warning. The pilot additionally notified the management tower of a “go-around,” referring to an aborted touchdown try, and declared “Mayday,” mentioned Yu Kyung-soo, director of aviation security coverage at MOLIT, in line with an NBC News Translation.

Two black packing containers have been retrieved from the plane and have been despatched for evaluation. The U.S. National Transportation Safety Board is in the meantime main a staff of U.S. investigators, together with the Federal Aviation Administration and Boeing, to help South Korea’s Aviation and Railway Accident Investigation Board with an investigation into the crash.

MOLIT officers mentioned Monday they have been reviewing the concrete wall which the plane hit for its connection to the accident.

They additionally mentioned they’d conduct a “complete particular inspection of the B737-800 mannequin.”

The well-liked Boeing narrowbody plane has been in operation for practically three a long time, with growth predating the U.S. manufacturer’s troubled B737-Max jets, a later iteration of the mannequin.

The B737-800 is broadly utilized by South Korean low-cost carriers, MOLIT mentioned Monday, with Jeju Air the most important operator with 39 jets. Other operators embody T’way Air, Jin Air, Eastar Jet and Air Incheon, whereas flag service Korean Air has two of the mannequin.

“We will look at compliance with numerous laws, together with operational information, inspections, and upkeep performed earlier than and after flights,” Ju Jong-wan, director of the Aviation Policy Office at MOLIT, mentioned Monday, in line with the NBC News translation.

“We plan to evaluation strengthening laws concerning hen strikes, recognized as a possible explanation for the accident, particularly for brand new airports underneath building.”

CNBC has contacted Boeing for remark.

Local media reported that one other Jeju Air plane of the identical mannequin returned to South Korea’s Gimpo Airport shortly after takeoff on Monday after reporting points with its touchdown gear.

At a press briefing on Sunday, head of the administration help workplace at Jeju Air, Song Kyung-hoon, mentioned the airline would help the victims and their households, and that the plane was coated by a $1 billion insurance coverage, according to news site Yonhap.

Song additionally denied that mechanical faults or insufficient security preparations performed a job within the crash.

“This crash just isn’t about any upkeep points. There will be completely no compromise relating to sustaining plane,” Song mentioned.

Shares of Jeju Air hit an all-time low Monday, in line with FactSet knowledge, and closed 8.65% decrease.

— CNBC’s Yeo Boon Ping contributed to this story.