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 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 twenty six years old, a lot older than the Boeing 737 MAX that had been seated in March 2019 after 2 fatal crashes, including a Lion Air crash in Indonesia that killed 189 individuals 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 two black boxes from the Sriwijaya Air flight had been believed have been recognized 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 sixty two individuals aboard and was headed to Pontianak on the island of Borneo from the nation’s capital. 12 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 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, determined by the conduct of two former MAX method specialized pilots, as well as 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 the best thing for us to do – a step that properly 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 just how crucial the obligation of ours of transparency to regulators is, and the effects that the business of ours can experience if any one of us falls short of those expectations.”