Boeing
- Boeing shares are set to drop at least 9% when markets open on Monday, wiping about $21.5 billion off the company's market capitalization.
- Questions are being asked about the manufacturer after its Boeing 737 MAX 8 aircraft crashed on an Ethiopian Airlines flight to Kenya Sunday morning, the second deadly crash in recent months.
- 157 people died in the latest crash. Chinese aviation authorities told airlines on Monday to ground all flights involving the model in question.
Boeing shares are set to take a $21.5 billion hit after the second crash in six months involving one of its aircraft.
An Ethiopian Airlines flight to Kenya crashed on Sunday $4 killing 157 people and mirroring a similar incident in Indonesia last October. The US aircraft manufacturer's safety record is now in question - Chinese aviation authorities$4 airlines to ground all flights involving Boeing's 737 MAX 8 model.
"This tragic incident will be a massive hurdle for Boeing to overcome," said Jasper Lawler, head of research at London Capital Group.
Boeing shares are down 9% in pre-market trading as of 9 a.m in London (5 a.m ET) and are set to drag down the Dow with futures down 0.8%.
The company has postponed the debut of a new plane, the 777X Jetliner, which was planned for this week in light of the fallout from the Ethiopia crash.
Both flights involved brand new planes which crashed just a few minutes into their respective flights and is Boeing's bestselling aircraft of its type. Boeing sold 580 737s last year, 72% of the company's total $4
The cause of the crash is not yet known. However, flight tracking website Flightradar24 detected that the flight had shown "unstable vertical speed" before crashing.
In October, a Lion Air flight carrying 189 people went down in Indonesia.
Get the latest Boeing stock price $4