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ETHIOPIA: Boeing Stock Plunges After Ethiopia Airline Crash

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The most sold Modern Passenger Aircraft in the world, the Boeing 737 Max family, is currently under scrutiny from stakeholders, following two crashes in 5 months with the latest Ethiopian Airline Boeing-737-800 Max crash; a crash which claimed the lives of 157 passengers and crew on-board from around 33 countries.

Gathered intelligence and information concerning the crash points to the possibility of a shared cause between Boeing catastrophes of the crash of another Ethiopia Airline brand-new 737 MAX 8 where 157 passengers lost their lives and Lion Air in Indonesia in October 2018, where all 189 people on board the flight lost their lives.

The crashes which are currently being investigated has informed the actions of countries such as Nigeria, Ethiopia, USA as well as other countries to ground and put on hold aeroplanes from Boeing.

Boeing stock was also not left out of the dent caused by the crashes, the grounding of the aeroplanes as well as the investigations, made the stock of the industry across stock exchange floors take a plunge by more than 12 per cent since the crash.

At the aftermath of the Ethiopia airline crash, Boeing shares closed down 5.3 per cent, at around $400 on Monday. While Shares in the planemaker fell as much as 13.5 per cent.

As a result of the shares plunge for Boeing and the plane marker, close to $12.5 billion has been lost in the stock market value.

Reacting to the grounding of the Boeing Aeroplanes by several countries, the CEO, President, and chairman of Boeing, Dennis Muilenburg supporting the decisions of these countries to ground Boeing’s aeroplanes said; “we are supporting this proactive step out of an abundance of caution.”

He further pointed out that “safety is a core value at Boeing for as long as we have been building aeroplanes and it will always be. There is no greater priority for our company and our industry. We are doing everything we can to understand the cause of the accidents in partnership with the investigators to deploy safety enhancements and ensure this does not happen again.”

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