Boeing shares fall as South Korea orders inspections of B737-800s | Wilnesh News

boeing company Shares fell nearly 5% in premarket trading on Monday after South Korea ordered inspections of all B737-800 aircraft involved in the fatal Jeju Air crash over the weekend.

Acting President Choi Sang-mok directed the Ministry of Land, Infrastructure, Transport and Tourism to conduct an emergency safety inspection of South Korea’s entire airline operating system, while Ministry of Land, Infrastructure, Transport and Tourism officials said they would conduct a “comprehensive special inspection of South Korea’s entire airline operating system.”

New York-listed Boeing shares fell 4.7% in premarket trading before paring losses to fall 4% as of 6:10 a.m. ET.

The specific circumstances of the accident are still uncertain. The accident caused 181 deaths, including 179 fatalities. on Sunday’s flight. The plane landed at Muan International Airport in South Korea without the correct equipment, skidded off the runway and hit a wall before bursting into flames. The survivors were two crew members rescued from the wreckage.

During Monday’s briefing, Mollett said the pilot mentioned a “bird strike” minutes after the airport control tower issued a bird activity warning. The pilot also notified the control tower of a “go-around,” referring to a failed landing attempt, and declared a “mayday,” Yu Kyung-soo, director of aviation safety policy at MOLIT, said according to an NBC News translation.

Two black boxes were removed from the aircraft and have been sent for analysis. Meanwhile, the U.S. National Transportation Safety Board is leading an investigative team composed of the U.S. Federal Aviation Administration and Boeing Co. to assist the Korean Air and Rail Accident Investigation Board in its investigation of the crash.

MOLIT officials said Monday they were examining whether the concrete wall the plane hit was related to the crash.

They also stated that they would “conduct a comprehensive special inspection of the B737-800 aircraft.”

Boeing’s popular narrow-body aircraft has been in service for nearly three decades, with development predating the U.S. manufacturer’s troubled B737-Max jet, a later version of the model.

MOLIT said on Monday that the B737-800 is widely used by South Korean budget airlines, with Jeju Air being the largest operator with 39 aircraft. Others include T’way Air, Jin Air, Eastar Air and Incheon Air, while flagship carrier Korean Air operates two of the model.

“We will check compliance with various regulations, including operational records, inspections and maintenance performed before and after flights,” Ju Jong-wan, director of MOLIT’s aviation policy office, said Monday, according to NBC News.

“We plan to review strengthening regulations around bird strikes, which are considered a potential cause of accidents, particularly at new airports under construction.”

CNBC has reached out to Boeing for comment.

local media reports Another Jeju Air plane of the same model returned to South Korea’s Gimpo Airport shortly after takeoff on Monday after reporting a landing gear problem.

At a news conference on Sunday, Song Kyung-hoon, director of Jeju Air’s Management Support Office, said the airline would provide support to the victims and their families and that the plane had $1 billion in insurance. According to news website reports Yonhap News Agency.

Song also denied that mechanical failure or inadequate safety preparations were the cause of the accident.

“This crash was not related to any maintenance issues. There must be no compromise when it comes to maintaining the aircraft,” Song said.

FactSet data shows that Jeju Air’s stock price hit a record low on Monday, closing down 8.65%.

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