Boeing falls once a Boeing 737 500 passenger plane operated by Sriwijaya Air crashes into the sea Saturday off the coast of Indonesia.
Boeing (BA) – Get Report shares declined Monday following a Boeing 737 500 passenger plane operated by Sriwijaya Air crashed Saturday into the ocean off the coast of Indonesia after taking off from Jakarta.
The plane, a 737 500 aircraft, was twenty six years of age, so much older compared to the Boeing 737 MAX which was based in March 2019 after two fatal crashes, including a Lion Air crash in Indonesia which killed 189 people in 2018.
Black boxes of the plane were located and communications data has been obtained, CNN reported.
The head of Indonesia’s National Search and Rescue Agency said late Sunday that the two black boxes from the Sriwijaya Air flight were thought have been recognized within 150 meters to 200 meters of the crash site, as reported by CNN.
The Boeing 737 500 jet disappeared minutes after taking off from Jakarta, Indonesia’s capital, during heavy rain on Saturday. The Sriwijaya Air flight had sixty two people aboard and was headed to Pontianak on the island of Borneo from the nation’s capital. Twelve on board were crew members.
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Boeing shares fell 1.81 % to $206.02 in trading Monday.
The crash comes only days after jetmaker Boeing agreed to fork out a $2.5 billion fine over fraud and conspiracy charges linked with its 737 MAX jet program.
The settlement involves a criminal penalty of $243.6 million, determined by the conduct of 2 former MAX method complex pilots, as well as the establishment of a $500 million fund to offer compensation for families of the victims of the Lion Air and also Ethiopian Airlines crashes, the company said.
Boeing said the deferred prosecution agreement with the Department of Justice, which it entered into on Thursday, will impact the company’s fourth-quarter earnings by $743.5 zillion.
“I firmly believe that entering into this particular resolution is the perfect thing for us to do – a step that appropriately acknowledges how we fell short of the values of ours and expectations,” said CEO Dave Calhoun. “This resolution is a serious reminder to all of us of precisely how critical our obligation of transparency to regulators is, and the consequences that our business is able to experience if any one of us falls short of those expectations.”