Europe grounds Boeing 737 Max jets
European Union’s call comes after other regulators including China, Singapore, and Britain grounded Boeing’s 737 Max jets.
European aviation regulators grounded the use of Boeing's 737 Max jetliners following the deadly crash of the same model of aircraft flown by Ethiopian Airlines which killed 157 people.
European Union’s (EU) call comes after other regulators including China, Singapore, and Britain grounded Boeing’s 737 airplane variant. This is the second same plane model from Boeing that has crashed in less than five months, raising questions on the safety of the airline company’s bestselling 737s.
The European Union Aviation Safety Agency said on Tuesday the decision to suspend operations not only applies to airlines within the EU but to operators outside of the region flying to or from the region. The regulator said it ‘is taking every step necessary to ensure the safety of passengers’.
Aeroplane manufacturer Boeing said in a statement it understands that regulatory agencies and customers have made decisions that they believe are most appropriate for their home markets.
‘We’ll continue to engage with all of them to ensure they have all the information they need to have the confidence they need safely to continue to operate their fleets or return them to service,’ Boeing said.
US aviation regulator not banning the American-manufactured plane
Meanwhile, the Federal Aviation Administration (FAA) had said on Monday it did not see a reason to ground the planes but it has ordered Boeing to make urgent improvements to the 737 Max aircraft.
The FAA has ordered Boeing to improve anti-stalling software and the model's manoeuvring system, giving the company until the end of April to make the updates.
Investigators have recovered the black box flight recorders from the crashed Ethiopian Airlines plane.
Boeing’s shares suffered heavy losses on Tuesday, as it sank 6.15% or US$24.60, to US$375.41 at the close, sinking further from Monday’s 5.33% slide.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets