Second Boeing 737 Plane Crash in the Past 6 Months Causes Stocks to Plummet

Man waiting at an airport.

Man waiting at an airport.

On Sunday Ethiopian Airlines Flight 302 crashed, killing 157 people. This is the second Boeing 737 Max 8 crash in the past six months. The last accident happened in October and killed 189 passengers and Indonesian Lion Air employees.

On March 10th an Ethiopian Airlines Boeing 737 nosedived into the ground shortly after liftoff and killed all of its passengers. Investigators are looking at the similarities between this crash and the Boeing 737 crash that happened back in October, which also killed all of its passengers. In both of the accidents, the pilots tried and failed to return the plane to the runway shortly after they took off. [1]

Boeing shares had dropped over seven percent by Monday. This is a significant drop after the companies shares have been steadily climbing 28 points in the past twelve months. If Boeing’s shares continue to drop then, investors are more likely to buy the stocks at the lower price which will stop Boeings shares from plummetting too far down.

Since the second Boeing crash, several countries have grounded their Boeing 737 Max 8 planes citing safety reasons. Jim Corridore, director of industrials equity research at CFRA Research, said that he expects the planes to resume flying “over the next day or two.” [2]

Boeing Airplanes did issue an apology towards the families of those who were on board the Ethiopian Airlines Flight 302 — saying that they were “deeply saddened” about the deaths of the passengers.

Eight Americans died in the crash on Sunday, and technical teams from Boing Airplanes along with the Ethiopian Accident Investigation Bureau, and U.S. National Transportation Safety Board are continuing to investigate both crashes.


Notes:

  1. ^Rapier, Graham. “Some countries and airlines have grounded the Boeing 737 Max 8 after a 2nd crash involving the plane killed 157 people — here’s who’s taken action so far.” Business Insider, 11 Mar. 2019, www.businessinsider.com/ethiopia-crash-countries-that-have-grounded-the-boeing-737-max-2019-3?utm_source=feedly&amp%3Butm_medium=referral. (go back↩)
  2. ^Boeing Stock Prices fall https://www.usatoday.com/story/money/business/2019/03/11/boeing-stock-price-drops-after-ethiopian-airlines-crash-737-max-8/3128056002/ (go back↩)

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