The United States on Wednesday joined Europe, China and other countries in grounding Boeing Co’s 737 MAX jets, because of safety concerns after an Ethiopian Airlines plane crash that killed 157 people, the second disaster involving the 737 in less than five months, ONA reports quoting Reuters.
The world’s biggest planemaker is facing its most serious crisis in years, as the decades-old 737 program, one of its most reliable sources of cash and profits, takes a severe blow to its prestige.
The U.S. Federal Aviation Administration (FAA) cited new satellite data and evidence from the scene of Sunday’s crash near Addis Ababa for its decision to ground the planes.
It was the second time the FAA has halted flights of a Boeing plane in six years. It had grounded the 787 Dreamliner in 2013 because of problems with smoking batteries.
Shares of the Seattle-based company ended up 0.5 percent at $377.14, recovering from a more than 3 percent fall in the afternoon when the FAA announcement was made.
Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, said the grounding gives Boeing time to address any problems and not face another potential disaster.
U.S. airlines that operate the 737 MAX, Southwest Airlines Co, American Airlines Group Inc and United Airlines, said they were working to re-book passengers.