Boeing slides after authorities say Ethiopian Airlines and Lion Air crashes have 'clear similarities'

REUTERS/Jason Redmond

• The March 10 Ethiopian Airlines crash that killed all 157 people on board has parallels to the October Lion Air crash of the same Boeing model that killed 189 people, according to Ethiopia's transport minister.
• The two crashes have resulted in the worldwide grounding of the Boeing 737 Max aircraft.
• Watch Boeing trade live.

Boeing shares slid 2.89% to $368.02 apiece early Monday after Ethiopian authorities pointed to parallels between the Ethiopian Airlines crash earlier this month and the Lion Air crash in October. Both incidents involved the Boeing 737 Max aircraft, which represents the bulk of the plane maker's 5,000-strong aircraft orders.

"Clear similarities were noted between Ethiopian Air Flight 302 and Indonesian Lion Air Flight 610, which will be the subject of further study during the investigation," Ethiopian transport minister Dagmawit Moge said Sunday in a statement seen by The Wall Street Journal.

The March 10 Ethiopian Airlines crash killed all 157 people on board came about five months after a Lion Air crash killed 189 people. The series of crashes has resulted in an international investigation, and the grounding of the Boeing 737 Max aircraft worldwide.

On Friday, Reuters reported that investigators found a piece of equipment called a jackscrew at the Ethiopian crash site. According to two sources who spoke to The New York Times, the evidence suggests that the jet's stabilizers were tilted upward, which would have then forced the nose of the plane downward. Jackscrews control the horizontal angle of the stabilizers. According to Reuters, sources said this resembled evidence from the Lion Air crash.

Boeing shares have fallen 13% since the Ethiopian Airlines crash. But despite the recent sell-off, Boeing was still up 14% this year as the company's fourth-quarter-earnings report highlighted strong fundamentals and positive expectations surrounding the rollout of the 777X, its 747 replacement.

MI