Shares of $BA Plunge After Hundreds of 737’s Grounded Worldwide Post Ethiopian Crash

It’s too god damned grim a thing to be talking about in the early morning. Let’s just say Boeing has some explaining to do and the world is raising an eyebrow to their 737 Max 8 planes. The reason why BA has done so well is because we’re in an upgrade cycle and foreign countries are buying new fleets. If this turns out to be their fault, shares of BA are in for a lot more than a 10% decline.

Ethiopian Airlines and China's aviation authority grounded its Boeing 737 Max 8 planes after Sunday's crash that killed 157 people. Regulators pointed to last year's Lion Air crash and said they have zero tolerance for safety hazards. @KrisVanCleave reports: pic.twitter.com/CAAc5QdPHh

— CBS This Morning (@CBSThisMorning) March 11, 2019

Ethi­o­pia, China and other countries announced Monday that they would ground the type of U.S. aircraft that was involved in a devastating Ethio­pian Airlines crash that killed everyone on board Sunday just minutes after takeoff.

A national day of mourning has been declared in Ethio­pia, and investigators are sifting through the crash site to identify remains so they can be turned over to families. Ethi­o­pia Airlines reported that the “black box” voice and data recorders have been recovered from the plane.

China’s Civil Aviation Administration said in a statement early Monday that it has asked domestic airlines to temporarily ground all Boeing 737 Max 8 jets before 6 p.m. It was the first time China has taken the lead in ordering a model grounded before other national aviation agencies.

Cayman Airways and Indonesia’s airlines also suspended the use of the Boeing 737 Max 8 plane, the latest version of the industry’s most popular passenger airline. Indonesia’s director general of civil aviation, Polana B. Pramesti, said the move was to ensure flight safety and that the planes would be inspected. Indonesia has 11 Max 8 aircraft in service.

Officials are “conducting an inspection by temporarily grounding the planes to make sure that they’re airworthy,” Pramesti said in a statement.

India’s chief air regulator announced it would be reviewing the situation with the aircraft and planned to issue new safety instructions to operators by Tuesday.

This drop in BA will contribute to 200 down points for the Dow. Aside from this, markets look fine early going.