Boeing falls as South Korea orders B737-800 inspection

boeing Shares fell nearly 5% in premarket trading Monday after South Korea ordered an inspection of all B737-800 aircraft, the model involved in a deadly Jeju Air crash over the weekend.

Acting President Choi Sang-mok told the Ministry of Transportation to carry out an emergency safety inspection of the entire operating system of the country’s airlines.while officials from the Ministry of Land, Infrastructure and Transport (MOLIT) said they would carry out a “thorough special inspection of the B737-800”.

New York-listed shares of Boeing fell 4.7% in premarket trading before paring losses to trade 3.6% lower as of 6:45 a.m. ET.

Uncertainty surrounds the exact circumstances of the accident, which killed 179 of the 181 people who were on board Sunday’s flight. The plane landed without the correct equipment deployed at South Korea’s Muan International Airport, skidded off the runway and crashed into a wall before bursting into flames. The survivors were two crew members who were rescued from the rubble.

In a briefing on Monday, MOLIT said the plane’s pilot had mentioned a “bird strike,” a few minutes after the airport control tower issued a bird activity warning. The pilot also notified the control tower of a “go-around,” referring to an aborted landing attempt, and declared “Mayday,” said Yu Kyung-soo, director of aviation safety policy at MOLIT, according to NBC News Translation.

Two black boxes were recovered from the aircraft and sent for analysis. Meanwhile, the U.S. National Transportation Safety Board is leading a team of U.S. investigators, including the Federal Aviation Administration and Boeing, to assist South Korea’s Aviation and Rail Accident Investigation Board in an investigation into the accident.

MOLIT officials said Monday they were reviewing the concrete wall the plane hit to determine its connection to the crash.

They also said they would carry out a “thorough special inspection of the B737-800 model.”

Boeing’s popular narrowbody aircraft has been in operation for nearly three decades and its development predates The problematic B737-Max planes of the American manufacturera later iteration of the model.

The B737-800 is widely used by South Korea’s low-cost airlines, MOLIT said on Monday, with Jeju Air being the largest operator with 39 aircraft. Other operators include T’way Air, Jin Air, Eastar Jet and Air Incheon, while flag carrier Korean Air has two of the model.

“We will examine compliance with various regulations, including operational records, inspections and maintenance carried out before and after flights,” Ju Jong-wan, director of MOLIT’s Aviation Policy Office, said on Monday, as translated by NBC News.

“We plan to review strengthening regulations regarding bird strikes, identified as a possible cause of the accident, especially for new airports under construction.”

A Boeing spokesperson told CNBC: “We are in contact with Jeju Air regarding Flight 2216 and stand ready to support them. We extend our deepest condolences to the families who lost their loved ones and our thoughts remain with the passengers and crew. “.

Local media reported that another Jeju Air plane of the same model returned to South Korea’s Gimpo Airport shortly after takeoff on Monday after reporting problems with its landing gear.

At a press conference on Sunday, Jeju Air administrative support office head Song Kyung-hoon said the airline would support the victims and their families, and that the plane was covered by 1 billion insurance. dollars. according to news site Yonhap.

Song also denied that mechanical failures or inadequate safety preparations played a role in the accident.

“This accident has nothing to do with any maintenance issues. There can be no compromise when it comes to aircraft maintenance,” Song said.

Jeju Air shares hit a record low on Monday, according to FactSet data, closing down 8.65%.

— CNBC’s Yeo Boon Ping contributed to this story.