Boeing falls once a Boeing 737 500 passenger plane operated by Sriwijaya Air crashes into the ocean 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 sea off of the coast of Indonesia after taking off from Jakarta.
The plane, a 737-500 aircraft, was 26 years of age, so much older compared to the Boeing 737 MAX that was grounded in March 2019 after two fatal crashes, including a Lion Air crash in Indonesia which killed 189 individuals 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 believed have been detected 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 as well as conspiracy charges linked with its 737 MAX jet program.
The settlement entails a criminal penalty of $243.6 huge number of, according to the conduct of 2 former MAX program technical pilots, and 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, is going to impact the company’s fourth-quarter earnings by $743.5 million.
“I firmly believe that entering into this particular resolution is a proper thing for us to do – a step which appropriately acknowledges exactly how we fell short of our values as well as expectations,” said CEO Dave Calhoun. “This resolution is a serious reminder to all of us of precisely how crucial the obligation of ours of transparency to regulators is actually, and also the consequences that the business of ours is able to experience when any one of us falls short of those expectations.”