Boeing suffers $5 billion losses in market after its 737-800 jet crashes

Aircraft manufacturer Boeing seems to be in trouble as one of its 737-300 jets crashed in China leaving 132 people dead. The shares of the company plunged to more than 6 percent on March 21, 2022 and then finished day down to 3 percent. Boeing has always been in a scandalous position especially years after the incident that was related to the software malfunction on its 737 Max model. The shares of Boeing were down to $185.90 at close as it dropped from $192 when the market closed on Friday.

As per reports, the company lost $5 billion in terms of market capitalization due to the drop. Not just the aircraft manufacturing company but even China Eastern Airlines suffered a blow and its shares closed to 6.5 percent after the news of the crash went viral. The US listed shares of the airline also slumped to 6 percent on March 21, 2022. As a result, the company has grounded all of its fleet of the 737-800 aircrafts. It has nearly 109 aircrafts. The flight that met a fatal accident was on its way from Kunming which is the capital of Yunnan province to Guangzhou which is the capital of Guangdong and shares its border with Hong Kong.

The aircraft crashed on the hillside and caused fire on the bamboo trees. The state media of china has also shared a picture of the piece of the aircraft on the hillside. China Eastern has said that the cause of the crash is still under investigation. The 737-800 aircraft is the predecessor to the 737 Max Model, which is grounded in China after a couple of fatal crashes in 2018 that happened in Indonesia and Ethiopia. The incidences killed 346 people.

As per reports, the flight MU5735 lost control and nose-dived on the hillside which erupted in a huge fireball. The forest fire was visible in the NASA satellite images that were taken from space. One of the rescue officers said that the aircraft is completely disintegrated. There were 123 passengers and nine crew members.

Photo Credits: Aviation week

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