Boeing Shares Bounce on 737 Max Being Fixed

02:18 03/16/2019

Shares of Boeing BA  have been having a wild week. The deadly Ethiopian Airlines crash and President Trump grounding all Boeing 737 Max planes has had investors in panic.

The Ethiopian Airlines fatal crash took the lives of 157 people with eight Americans included on the flight.

According to the FAA, the grounding of the planes 'will remain in effect pending further investigation, including examination of information from the aircraft's flight data recorders and cockpit voice recorders.'

There has not been a cause determined yet for the Ethiopian Airlines crash but the world has been in a panic considering that its the second crash in months. Last October a Max 8 jet crashed in Indonesia, killing 189 people.

'The agency made this decision as a result of the data gathering process and new evidence collected at the site and analyzed today,' the agency stated. 'This evidence, together with newly refined satellite data available to FAA this morning, led to this decision.'

'It's a terrible, terrible thing,' the president said about the crash. 'Boeing is an incredible company they are working very very hard right now, and hopefully they'll very quickly come up with the answer, but until they do the planes are grounded.'

'Boeing continues to have full confidence in the safety of the 737 MAX,' Boeing stated. 'However, after consultation with the U.S. Federal Aviation Administration, the U.S. National Transportation Safety Board (NTSB), and aviation authorities and its customers around the world, Boeing has determined — out of an abundance of caution and in order to reassure the flying public of the aircraft's safety — to recommend to the FAA the temporary suspension of operations of the entire global fleet of 371 737 MAX aircraft.'

Shares of Boeing then popped on Friday after the Chicago-based company said that it is working on fixing the jet in the near future. A software upgrade is expected to take place in about a week and a half according to a publication. Analysts had expected the fix to take months.

The timeline for aircraft release to airlines remains the same.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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