Boeing shares sink the most since 2001 as jittery customers dump Boeing 737 Max

Shares of Boeing were in a free fall on Monday after Sunday’s air mishap involving Ethopian Airline Nairobi-bound Boeing 787 ax 8 aircraft which crashed shortly after take-off killing all passengers onboard.

The shares sank 11 percent to $374.31 on Monday on the New York Stock Exchange (NYSE) after sliding as much as 13 percent for the biggest intraday decline since Sept. 17, 2001, the first day of trading after the infamous September 11 attacks.

The ill-fated flight followed the crash of Lion Air’s 737 Max off the coast of Indonesia on October 29 last year killing all passengers onboard. This has raised concern among major airlines across the globe.

The aircraft model, 737 Max 8 is Boeing’s most important aircraft type, generating almost one-third of the company’s operating profit and forming the backbone of many global airline fleets who use the model and Airbus’s competing A320 family on shorter routes.

Chinese airlines account for about 20 percent of 737 Max deliveries worldwide and the country’s aviation authority has ordered carriers to ground all 96 of Boeing’s newest 737 model

Following Sunday’s plane crash, Nigeria’s largest carrier, AirPeace Airlines, and prospective airline, Green Airways, are currently under pressure from customers to cancel orders it made with Boeing to purchase Boeing 737 MAX 8 aircraft.

Recall that Air peace last year ordered for 10 of the same aircraft brand. Also, Green Airways Africa, a prospective domestic carrier also claimed to have ordered for 100 of the same B737-800 MAX from the aircraft manufacturer.

Chris Iwarah, corporate communications manager, Air Peace Limited in a statement confirmed that the Airline placed orders for new Boeing 737 MAX 8 aircraft but are yet to take delivery of the aircriafts noting that the aircrafts are still at the design stage.

“Although it is premature to comment on the incidents, we wish  to assure members of the flying public that we are closely following and monitoring developments on the issue as an airline that prioritises the safety and well-being of our customers,” he said.

 

IFEOMA OKEKE & OLUFIKAYO OWOEYE