Boeing Faces New Upheaval After Crash of Chinese Airliner
China’s recent airline crash has hit Boeing’s business hard, with the company’s stock dropping $40 billion. China has been a key market for Boeing 737s, but the crash has sunk the company’s reputation. As a result, China Eastern Airlines has grounded its entire fleet of 737-800 aircraft. The crash has also led to speculation that pilots on board the plane may have passed out.
Boeing’s stock has dropped about $40 billion in value since crash of chinese airliner
Boeing shares extended their slide Tuesday after the crash, erasing about $27 billion in value. The Boeing stock has lost more than 12% since the crash on March 1, according to Bloomberg. Analysts still remain bullish on Boeing, but the crash has weighed heavily on the company’s stock. Of 21 analysts who cover Boeing, only two have recommended a sell. Despite the drop, the company’s stock is still trading down 5% on Tuesday, despite a decline of 5.3% on Monday.
Investors are worried that Boeing’s planes may crash again. The crash of an airliner in Ethiopia is putting pressure on Boeing’s bottom line. After the crash, investors have questioned whether it can continue to meet its own expectations.
China is a major market for Boeing 737s
According to a Bloomberg report, China’s airline market is one of Boeing’s largest worldwide. According to the Boeing Company, the country will need nearly 7,700 new airplanes over the next two decades. The country’s growing middle class, continuous economic growth and extensive infrastructure investment are fueling demand. The country’s fleet size is also expected to increase at a rate well above the global average. Boeing estimates that China will account for almost 20 percent of global demand for new aircraft.
Chinese airlines and leasing companies have committed to buying 300 Boeing aircraft. Boeing recently announced plans to build a factory in China that will manufacture 737s. The factory will also be used to paint and complete the aircraft’s interiors.
China Eastern Airlines grounded all its 737-800s
After the crash of a Chinese airliner, Boeing faces a new round of upheaval. Chinese officials and the National Transportation Safety Board are working together to investigate the crash. Boeing says it is assisting the investigation. The company also says it is communicating with the NTSB and China’s aviation safety regulator. The crash occurred on a flight from Kunming to Guangzhou.
China Eastern Airlines was one of the top three airlines in China, and had recently taken delivery of the Boeing 737-800 aircraft. The plane has now been flying for more than six years, and China Eastern Airlines has more than 600 planes. Of those, 109 are Boeing 737-800s. According to CCTV, the airline has nine teams whose job is to investigate any pending emergency situations.
Pilots may have passed out on board
Following the crash of a Chinese airliner in December, Boeing is addressing new issues. The company is in close contact with the Chinese government and the National Transportation Safety Board. The latter is leading the investigation into the incident. The company also says that it is assisting the Chinese authorities by providing technical expertise.
The crash triggered a massive fire in the surrounding area. The plane was destroyed in the crash, leaving a 65-foot-deep crater in the mountainside. The flight data recorder and cockpit voice recorder were recovered two and six days later. Chinese investigators are analyzing the data in the flight data recorders. A preliminary investigation report is expected within 30 days.