BEIJING/SHANGHAI (Reuters) - China's aviation regulator on Monday grounded nearly 100 Boeing Co 737 MAX 8 aircraft operated by its airlines, more than a quarter of the global fleet of the jets, after a deadly crash of one of the planes in Ethiopia. Boeing, whose shares dropped 9 percent in U.S.
BEIJING/SHANGHAI - China's aviation regulator on Monday grounded nearly 100 Boeing Co 737 MAX 8 aircraft operated by its airlines, more than a quarter of the global fleet of the jets, after a deadly crash of one of the planes in Ethiopia.
It was unusual to ground a plane type unless a specific mechanical issue or component failure had been identified and could be inspected, said Andrew Herdman, director general of the Association of Asia Pacific Airlines. Sunday's crash, minutes after take-off, of an Ethiopian Airlines 737 MAX 8 bound for Nairobi, killed all 157 on board and prompted the carrier to ground the rest of its 737 MAX jets.
The grounding was due to safety concerns and not related to trade friction between the United States and China, Li Jian, the deputy head of the Chinese regulator, told reporters, the Yangcheng Evening News said.
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Southwest says it remains 'confident' in its fleet of Boeing planes after Ethiopia crashSouthwest Airlines Co. expressed confidence in its Boeing Co. aircraft and said has no plans to change operations in the wake of a deadly crash involving a 737 Max 8 aircraft in Ethiopia. But shares of the airline fell over 3% in premarket trading, alongside a nearly 9% drop in Boeing shares. "As Southwest operates a fleet of 34 Boeing 737 MAX 8 aircraft, we have been in contact with Boeing and will continue to stay close to the investigation as it progresses," said a spokesman for the company. Ethiopian Airlines Flight 302 crashed shortly after takeoff from the capitol of Addis Ababa, killing all 157 people on board. It's the second deadly accident involving Boeing's popular 737 Max 8 in six months, with the last occurring in October when an Indonesia Lion Air jet crashed into the sea, killing all 189 on board. China's civilian aviation authority has ordered all airlines to ground those Max 8 planes, while Ethiopian Airlines has grounded its entire fleet of those planes. "We don't have any changes planned to our operational policies or procedures," said the Southwest spokesman. Losses for Boeing drove a 170-point drop in Dow futures.
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