Advertisement

Boeing Shares In Dramatic Slide After Ethiopian Airlines Crash

Shares of Boeing Co have slid 9 per cent in early trading as some airlines grounded the plane maker's best selling 737 MAX 8 passenger jet following the second deadly crash involving the plane.

A Nairobi-bound Boeing 737 MAX 8 operated by Ethiopian Airlines crashed minutes after take-off from Addis Ababa on Sunday, killing all 157 on board.

The same model flown by Lion Air crashed off the coast of Indonesia in October, killing all 189 on board.

The Civil Aviation Administration of China ordered Chinese airlines to ground all Boeing 737 MAX 8 planes after the crash.

READ MORE: China Orders Airlines To Suspend Use Of 737 MAX After Ethiopia Crash

The CAA said it would contact the US Federal Aviation Administration and Boeing regarding the resumption of operations once they are assured that measures have been taken to ensure safety.

Ethiopian Airlines said it had grounded its 737 MAX 8 fleet until further notice as an "extra safety precaution" even though it did not know the cause of Sunday's crash.

The 737 MAX 8 uses LEAP-1B engines made by CFM International, a joint venture of General Electric Co and Safran SA. Shares in Safran also fell 1.6 per cent on Monday.

READ MOREQuestions Raised Over Boeing 737 MAX As It Heads To Australia

READ MORE: Ethiopian Airlines Plane Crashed With 157 People On Board

Boeing said on Monday the investigation into the Ethiopian Airlines crash is in its early stages and there is no need to issue new guidance to operators of its 737 MAX 8 aircraft based on the information it has so far.

Shares of rival Airbus SE were up 0.5 per cent.