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 following 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 of age, a lot older compared to the Boeing 737 MAX that was grounded in March 2019 after 2 fatal crashes, including a Lion Air crash in Indonesia that killed 189 men and women 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 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 sixty two folks 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 just days after jetmaker Boeing agreed to spend a $2.5 billion fine over fraud and conspiracy charges linked with its 737 MAX jet program.
The settlement entails a criminal penalty of $243.6 million, determined by the conduct of 2 former MAX program specialized pilots, and the establishment of a $500 million fund to offer 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, will impact the company’s fourth-quarter earnings by $743.5 zillion.
“I firmly believe that entering into this resolution is actually the best thing for us to do – a step that appropriately 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 critical our obligation of transparency to regulators is, as well as the effects that the business of ours can experience if any one of us falls short of those expectations.”