The wreckage of Jeju Air Co. Flight 2216 at Muan International Airport in Muan County, South Korea, on Monday, Dec. 30, 2024.
SeongJoon Cho | Bloomberg | Getty Images
Boeing shares dropped nearly 5% in premarket trading Monday, after South Korea ordered an inspection of all B737-800 planes, the model involved in a deadly Jeju Air crash over the weekend.
Acting President Choi Sang-mok told the transport ministry to carry out an emergency safety inspection of the country’s entire airline operation system, while officials at the Ministry of Land, Infrastructure, and Transport (MOLIT) said they would conduct a “comprehensive special inspection of the B737-800.”
New York-listed shares of Boeing were down 4.7% in premarket trading before paring losses to trade 4% lower as of 6:10 am ET.
Uncertainty surrounds the exact circumstances of the crash, which killed 179 of 181 people who were on board the flight on Sunday. The plane landed without the correct gear deployed at South Korea’s Muan International Airport, skidded off the runway and smashed into an exterior wall before bursting into flames. The survivors were two crew members who were pulled from the wreckage.
In a Monday briefing, MOLIT said the aircraft’s pilot had mentioned a “bird strike,” a few minutes after the airport’s control tower issued a bird activity warning. The pilot also notified the control tower of a “go-around,” referring to an aborted landing attempt, and declared “Mayday,” said Yu Kyung-soo, director of aviation safety policy at MOLIT, according to an NBC News Translation.
Two black boxes were retrieved from the aircraft and have been sent for analysis. The U.S. National Transportation Safety Board is meanwhile leading a team of U.S. investigators, including the Federal Aviation Administration and Boeing, to assist South Korea’s Aviation and Railway Accident Investigation Board with an investigation into the crash.
A Jeju Air Boeing 737-800 on the runway at Tokyo Narita airport in 2017.
Sopa Images | Lightrocket | Getty Images
MOLIT officials said Monday they were reviewing the concrete wall which the aircraft hit for its connection to the accident.
They also said they would conduct a “comprehensive special inspection of the B737-800 model.”
The popular Boeing narrowbody aircraft has been in operation for nearly three decades, with development predating the U.S. manufacturer’s troubled B737-Max jets, a later iteration of the model.
The B737-800 is widely used by South Korean low-cost carriers, MOLIT said Monday, with Jeju Air the biggest operator with 39 jets. Other operators include T’way Air, Jin Air, Eastar Jet and Air Incheon, while flag carrier Korean Air has two of the model.
“We will examine compliance with various regulations, including operational records, inspections, and maintenance conducted before and after flights,” Ju Jong-wan, director of the Aviation Policy Office at MOLIT, said Monday, according to the NBC News translation.
“We plan to review strengthening regulations regarding bird strikes, identified as a potential cause of the accident, especially for new airports under construction.”
CNBC has contacted Boeing for comment.
Local media reported that another Jeju Air aircraft of the same model returned to South Korea’s Gimpo Airport shortly after takeoff on Monday after reporting issues with its landing gear.
At a press briefing on Sunday, head of the management support office at Jeju Air, Song Kyung-hoon, said the airline would support the victims and their families, and that the aircraft was covered by a $1 billion insurance, according to news site Yonhap.
Song also denied that mechanical faults or inadequate safety preparations played a role in the crash.
“This crash is not about any maintenance issues. There can be absolutely no compromise when it comes to maintaining aircraft,” Song said.
Shares of Jeju Air hit an all-time low Monday, according to FactSet data, and closed 8.65% lower.
— CNBC’s Yeo Boon Ping contributed to this story.
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