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Boeing stocks crash as countries continue to ground 737 Max 8

Shares of Boeing (BA) fell more than 11% over the past two days: The stock fell 6% Tuesday following a 5% drop on Monday

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Wednesday, March 13, 2019

WASHINGTON: Boeing’s stock fell sharply for a second straight day as more nations and airlines grounded the company’s 737 MAX 8 planes.

Shares of Boeing (BA) fell more than 11% over the past two days: The stock fell 6% Tuesday following a 5% drop on Monday.

The stock’s slide follows the tragic Ethiopian Airlines plane crash on Sunday that killed all 157 passengers and crew on board.

The European Union Aviation Safety Agency announced Tuesday that it was suspending all Boeing 737 Max 8 flights in Europe as a “precautionary measure.”

The EU joins China, Australia, the UK and several other nations in deciding to halt Boeing 737 MAX 8 flights. The United States has yet to do so.

The FAA said in a statement late Monday that is “collecting data and keeping in contact with international civil aviation authorities” as more information about the crash becomes available.

Boeing said that it has “full confidence in the safety of the 737 MAX.”

“We understand that regulatory agencies and customers have made decisions that they believe are most appropriate for their home markets. We’ll continue to engage with them to ensure they have the information needed to have confidence in operating their fleets,” Boeing added.

The company also noted that the FAA “is not mandating any further action at this time, and based on the information currently available, we do not have any basis to issue new guidance to operators.”

But Utah Senator Mitt Romney urged the FAA to follow the lead of other international agencies.

He wrote in a tweet Tuesday that “out of an abundance of caution for the flying public, the [FAA] should ground the 737 MAX 8 until we investigate the causes of recent crashes and ensure the plane’s airworthiness.”

(With input agencies)

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