South Korea is reviewing its aviation safety standards after a Jeju Air Boeing 737-800 crash that killed 179 people. One of the greatest aviation disasters in the country requires a swift government reaction to prevent future ones.
Boeing (BA, Financials) fell 4% to $173.47 in Monday’s trading.
The fateful flight from Bangkok to Muan International Airport had serious issues upon arrival. After an unsuccessful initial attempt, ground control warned the aircraft of a bird attack. After landing without its front landing gear, the airplane overshot the runway, hit a concrete barrier, and caught fire.
Acting President Choi Sang-mok ordered an urgent investigation of all South Korean airlines’ Boeing 737-800s. This rule covers 101 aircraft, 39 from Jeju Air. The Ministry of Land, Infrastructure, and Transport leads structural safety efforts.
Boeing and NTSB personnel are supporting the investigation. According to reports, their perspectives are crucial to accident investigation and safety advise.
South Korea’s largest low-cost airline, Jeju Air, uses Boeing 737-800s. The airline, which has a good safety record, had an autopilot failure in 2018 and a wingtip hit in 2021. These instances cast doubt on airline maintenance practices.
Since its inception in the late 1990s, the Next Generation Boeing 737-800 has been a global aviation staple. It has a solid safety record after making 7,000 units. However, recent instances have prompted a maintenance and safety review.
Jeju Air has over 60,000 flight cancellations, indicating consumer distrust. Boeing shares fell more than 4% premarket, indicating investor concerns over airplane safety and liability.
This article first appeared on GuruFocus.