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Boeing Shares Fall After Second Deadly Crash Involving 737 MAX

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Shares of Boeing Co. (BA) are losing more than 11 percent in pre-market activity on Monday following news that one of the company's 737 MAX 8 aircraft operated by Ethiopian Airlines crashed on Sunday, killing all 157 people on board. The 737 MAX 8 is Boeing's best-selling aircraft.

Ethiopian Airlines Flight 302, with 149 passengers and 8 crew members, was en route to the Kenyan capital Nairobi when it crashed shortly after take off from the Ethiopian capital Addis Ababa.

In a statement in response to the crash, Boeing said, "We extend our heartfelt sympathies to the families and loved ones of the passengers and crew on board and stand ready to support the Ethiopian Airlines team. A Boeing technical team will be traveling to the crash site to provide technical assistance under the direction of the Ethiopia Accident Investigation Bureau and U.S. National Transportation Safety Board."

While the cause of the crash has not yet been determined, Ethiopian Airlines said on Twitter that the Digital Flight Data Recorder and Cockpit Voice Recorder of the aircraft have been recovered. The jet was delivered to Ethiopian Airlines in 2018.

This is the second 737 MAX 8 crash in five months, raising concerns over the aircraft's safety. In October 2018, an Indonesian Lion Air jet went down in the Java Sea minutes after departing Jakarta, killing 189 people.

Ethiopian Airlines said it has decided to ground all its Boeing 737-8 MAX fleet until further notice. China and Indonesia have also asked domestic airlines to ground their 737 Max 8 jets.

Future contracts on the Dow Industrial Average, where Boeing has the largest weighting, are down as much as 0.8 percent on Monday.

According to Boeing, the 737 MAX 8 incorporates the latest CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency and reliability in the single-aisle airplane market.

The 737 MAX is the fastest-selling airplane in Boeing's history, accumulating more than 4,800 orders from over 100 customers worldwide.

Boeing's shares have gained more than 33 percent this year, making it the biggest gainer in the Dow Jones Industrial Average.

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