An Ethiopian Airlines flight crashed just after takeoff, killing all 157 thought to be on board
USA TODAY
Boeing shares fell sharply Monday, a day after Ethiopian Airlines Flight 302 crashed shortly after take off, killing all 157 passengers and crew on board.
The Boeing 737 MAX 8 plane that nosedived into the ground outside the Ethiopian capital of Addis Ababa is the same model from a similar crash less than six months ago. On Oct. 29, an Indonesian Lion Air flight plummeted into the Java Sea, killing all 189 passengers and crew members.
Investigators will likely look into similarities between Sunday’s crash and the October incident. In both cases, the pilots attempted to return to the airport a few minutes after takeoff and both flights experienced drastic speed fluctuations during ascent.
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Boeing (BA) shares were down 11 percent in early trading Monday to $375.72. The stock had risen 28 percent over the past 12 months.
Several countries grounded Boeing 737 MAX 8 planes after Sunday’s crash over safety precautions. China and Indonesia grounded their jets, and Ethiopian Airlines grounded its remaining four Boeing 737 MAX 8 planes until further notice as an “extra safety precaution,” the operator said.
In a note to investors Monday, Jim Corridore, director of industrials equity research at CFRA Research, said he expected most 737 MAX planes to resume flying “over the next day or two.”
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“We think the issue could be related to the plane’s software, which causes it to dive when it thinks the plane might stall,” said Corridore, who maintained a “Strong Buy” on Boeing shares. “This seems to be what happened in the Lion Air crash. However, the system is easy to override and pilots should know how to do it.”
Boeing said a technical team was headed to the crash site to investigate, along with the Ethiopia Accident Investigation Bureau and U.S. National Transportation Safety Board.
The aircraft maker’s MAX 8 plane is a newer, more fuel-efficient model within its popular 737 line.
Contributing: The Associated Press
Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.
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