On New Year’s Eve, Boeing’s stock price fell more than 2% after a tragic plane crash involving Jeju Air in South Korea. The accident led to the deaths of 179 people and involved the Boeing 737-800 model, which is used by many airlines worldwide. Despite this incident, aviation experts say the 737-800 has a great safety record. About 200 airlines use this model, which has been flying for over 25 years and makes up around 1 in 7 planes in the air today.
South Korea’s transportation ministry announced that they would check all 101 Boeing 737-800 planes operated by airlines in the country, including Jeju Air. These inspections started on Monday and are expected to finish by Friday.
Boeing stated that they are working with Jeju Air and are ready to offer help. Meanwhile, Jeju Air’s stock dropped by 8.7% when trading closed in Seoul on Monday, reaching a record low for the company.
This crash adds to a difficult year for Boeing, which has been struggling with problems like worker strikes, quality control issues, high debt, and supply chain troubles. Boeing’s stock has lost over 30% of its value in 2024.
Earlier this month, a panel blew off a Boeing 737 Max plane during an Alaska Airlines flight, raising safety concerns once again, especially after two deadly crashes involving the Max model in the past five years. The Federal Aviation Administration (FAA) has now increased its supervision of Boeing and limited the production of the Max, which has affected the company financially.
In July, Boeing admitted to a serious crime related to the Max crashes and tried to resolve its legal issues, but a federal judge rejected their proposed agreement in December, making things even harder for the company.
In August, Kelly Ortberg became the new CEO of Boeing, taking over from Dave Calhoun, who stepped down. In September, around 33,000 Boeing workers went on strike for two months, causing major disruptions for the company. In October, Ortberg said in a memo that Boeing is facing tough challenges and announced plans to cut about 17,000 jobs, which is around 10% of the company’s global workforce.
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