Boeing falls after 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 after a Boeing 737-500 passenger plane operated by Sriwijaya Air crashed Saturday into the sea off the coast of Indonesia after taking off from Jakarta.
The plane, a 737 500 aircraft, was twenty six years old, so much older compared to the Boeing 737 MAX that was seated in March 2019 after two fatal crashes, including a Lion Air crash in Indonesia which killed 189 men and women in 2018.
Black boxes of the plane have been located and communications information has been obtained, CNN reported.
The head of Indonesia’s National Search and Rescue Agency said late Sunday that the 2 black boxes from the Sriwijaya Air flight had been thought have been detected within 150 meters to 200 meters of the crash site, according to 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 62 folks 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 just days after jetmaker Boeing agreed to spend a $2.5 billion fine over fraud as well as conspiracy charges linked to its 737 MAX jet program.
The settlement calls for a criminal penalty of $243.6 million, based on the conduct of 2 former MAX program complex pilots, along with the establishment of a $500 million fund to provide compensation for families of the victims of the Lion Air and Ethiopian Airlines crashes, the company said.
Boeing said the deferred prosecution agreement with the Department of Justice, which it entered into on Thursday, is going to impact the company’s fourth quarter earnings by $743.5 zillion.
“I firmly believe that entering into this particular resolution is a proper thing for us to do – a step that properly acknowledges how we fell short of the values of ours and expectations,” said CEO Dave Calhoun. “This resolution is actually a serious reminder to all of us of just how crucial our obligation of transparency to regulators is actually, and the effects that our business is able to encounter when any one of us falls short of those expectations.”