Boeing fell as South Korea ordered B737-800 inspections

Boeing Shares fell nearly 5% in Monday trading after South Korea ordered an inspection of all B737-800 planes involved in the fatal Jeju Air crash over the weekend.

Acting President Choi Sang-mok He told the Ministry of Transport to conduct an emergency security review of the operational system of all the country’s airlinesOfficials of the Ministry of Land, Infrastructure and Transport (MOLIT) said that they will conduct a “comprehensive special inspection of the B737-800”.

Boeing’s New York-listed shares fell 4.7% in premarket trading before paring losses down 4% at 6:10 a.m. ET.

Uncertainty surrounds the exact circumstances of the crash, which killed 179 of the 181 people in the crash. on board the plane on Sunday. The plane landed at South Korea’s Muan International Airport without proper gear, skidded off the runway, crashed into an outer wall, and burst into flames. The survivors were two crew members who were pulled from the wreckage.

In a briefing on Monday, MOLIT said the plane’s pilot reported a “bird strike” minutes after the airport’s control tower warned of bird activity. MOLIT director of aviation safety policy Yu Kyung-soo said the pilot also alerted the control tower to “turn around” and declared a “mayday” in reference to the aborted landing attempt, according to NBC News Translation.

Two black boxes were removed from the plane and sent for analysis. Meanwhile, the U.S. National Transportation Safety Board is leading a team of U.S. investigators, including the Federal Aviation Administration and Boeing, to help South Korea’s Aviation and Railroad Accident Investigation Board investigate the crash.

MOLIT officials said Monday that they are considering the concrete wall the plane hit as a connection to the crash.

They also said they would conduct a “comprehensive special inspection of the B737-800 model”.

The famous “Boeing” narrow-body aircraft has been in use for about three decades before its development The US manufacturer’s troubled B737-Max planesfurther iteration of the model.

The B737-800 is widely used by South Korea’s low-cost carriers, and Jeju Air is the largest operator with 39 jets, MOLIT said on Monday. Other operators include T’way Air, Jin Air, Eastar Jet and Air Incheon, while the Korean flag carrier has two models.

“We will check compliance with various regulations, including operational records, inspections and maintenance conducted before and after flights,” Ju Jong-wan, director of MOLIT’s Aviation Policy Office, said Monday, as translated by NBC News.

“We plan to consider strengthening regulations on bird strikes identified as a potential cause of accidents, particularly for new airports under construction.”

CNBC has reached out to Boeing for comment.

The local media reported on this Another Jeju Air plane of the same model returned to South Korea’s Gimpo airport shortly after takeoff on Monday after reporting problems with its landing gear.

At a press briefing on Sunday, Song Kyung-hoon, head of Jeju Air’s management support office, said the airline would support the victims and their families, and that the plane was covered by $1 billion in insurance. according to the news site Yonhap.

Song also denied that mechanical failure or inadequate safety preparations played a role in the accident.

“This accident is not related to any maintenance problem. There can be no compromise when it comes to maintaining the planes,” Song said.

Shares of Jeju Air hit an all-time low on Monday, falling 8.65%, according to FactSet data.

— CNBC’s Yeo Boon Ping contributed to this story.