Boeing Co. stock dropped 8% before the bell on Monday after a plane belonging to China Eastern Airlines crashed in the mountains of southern China, killing all 132 persons on board.
The cause of the crash was unknown at the time, and rescue crews reported finding no survivors, according to the media. Boeing stated that it was gathering more information.
In a statement, China Eastern Airlines said, “We can confirm the plane has crashed.” Its stock dropped 15.8% on the New York Stock Exchange.
According to Flightradar24, the plane involved in the crash was a six-year-old Boeing 737-800, a precursor to the 737 MAX model.
According to the planemaker’s website, the popular 737-800 model has a maximum seating capacity of 189 passengers and is powered by a CFM-56 engine.
A cooperative venture between General Electric and Safran SA in France produces the engines.
The disaster occurs as Boeing nears regulatory approval in China for its cash cow 737 MAX aircraft, which has been grounded in the world’s largest domestic aviation market following two catastrophic crashes in Indonesia and Ethiopia.
The plane is critical to Boeing’s health and recovery, as the company ramps up manufacturing in response to a revival in travel demand.
Boeing’s stock was down at $177.40, and China Eastern’s American Depositary Receipts were down at $15.89.
