Boeing falls after 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 after 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 26 years old, much older than the Boeing 737 MAX which was grounded in March 2019 after 2 fatal crashes, including a Lion Air crash in Indonesia which killed 189 people in 2018.
Black boxes of the plane had 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 were believed have been recognized within 150 meters to 200 meters of the crash site, based on 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 just days after jetmaker Boeing agreed to pay a $2.5 billion fine over fraud and conspiracy charges linked to its 737 MAX jet program.
The settlement calls for a criminal penalty of $243.6 huge number of, according to the conduct of 2 former MAX program specialized pilots, along with 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 resolution is the perfect thing for us to do – a step which properly acknowledges exactly how we fell short of our values and expectations,” said CEO Dave Calhoun. “This resolution is actually a serious reminder to all of us of how crucial the obligation of ours of transparency to regulators is actually, as well as the consequences that our company is able to experience when any one of us falls short of those expectations.”