Boeing (NYSE: BA) Co shares plunged 8% in the premarket trading on Monday after its 737-822 aircraft operated by China Eastern Airlines crashed in the mountains of Southern China with 132 people aboard, with no immediate information of casualties.
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The cause behind the crash was not immediately known and rescue workers had found no sign of survivors, as per the media reports. Boeing said it was working to gather more information. “Can confirm the plane has crashed,” said China Eastern Airlines in a statement. Shares in China Eastern Airlines 0670.HK in Hong Kong closed down 6.5% after news of the crash broke, while its US-listed shares tumbled 17% in premarket trading.
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The plane, with 123 passengers and nice crew members on board, lost contact over the city of Wuzhou, said China’s Civil Aviation Administration of China (CAAC).
According to Flightradar24 data, the flight left Kunming at 1:11 pm and had been due to land in Guangzhou at 3:05 pm.
The jet involved in the crash was a six-year-old Boeing 737-800 aircraft, a predecessor of the 737 MAX model, according to Flightradar24.
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According to the Boeing website, the popular 737-800 aircraft is equipped with a CFM-56 engine and has a maximum seating capacity of 189 passengers.
The engines are manufactured by a joint venture (JV) between General Electric (NYSE: GE) Company and France-based Safran (PA: SAF) SA.
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The crash comes at a time when Boeing is seeking regulatory approval in China for 737 MAX aircraft, its cash flow, after two fatal crashes in Indonesia and Ethiopia led to its grounding the world’s biggest domestic aviation market, reported Reuters.
The aircraft is crucial to Boeing’s health and recovery as it ramps up production in response to a rebound in travel demand post-Covid-19 period.
Shares of Boeing were trading 10.17 points or 5.32% down at 182.42 USD, while China Eastern’s American Depositary Receipts were down at $15.89. On Friday, Boeing shares closed at 192.83 USD.