Red Star Capital Bureau reported on December 29th that two Boeing planes have been involved in accidents within 24 hours, both of which are Boeing 737-800 aircraft from the United States. According to CCTV News, the South Korean Ministry of Land and Resources announced at a press conference that 177 people have been confirmed dead, 2 are missing, and 2 have been rescued in the collision and fire accident of a South Korean plane. Boeing responded by saying, "We are in contact with Jeju Airlines regarding flight 2216 and are ready to provide support to them at any time
It is worth mentioning that in recent years, Boeing has experienced frequent safety accidents, resulting in a significant decline in the number of aircraft orders. According to financial reports, Boeing has incurred losses of nearly $8 billion since the beginning of this year. In addition, Red Star Capital noticed that the stock price of Boeing (BA. US) has fallen by about 30% this year.
Within 24 hours, two Boeing 737-800 aircraft were involved in an accident
Boeing responds
According to reports from multiple foreign media outlets, on the evening of December 28th local time, a Boeing 737-800 aircraft operated by Royal Dutch Airlines experienced a hydraulic failure shortly after takeoff.
It is reported that the flight number of the plane is KL1204, originally planned to fly from Oslo, Norway to Amsterdam, Netherlands. After the malfunction occurred, the plane diverted and landed at Oslo Sandfjord Airport. However, during the landing process, the plane deviated from the runway and slid into the nearby grass. It is reported that there were 182 people on board the plane. There are currently no reports of casualties.
At around 9:07 am local time on December 29th, a South Korean Jeju Air passenger plane veered off the runway during landing at Woan International Airport in Jeollanam do, South Korea, and collided with the airport fence before catching fire. There were 173 South Korean passengers, 2 Thai passengers, and 6 crew members on board, totaling 181 people.
According to the latest news from Xinhua News Agency's Weibo account, the South Korean Fire Department announced on the 29th that as of 17:11 local time, 167 people have been confirmed dead in the plane crash at Wu'an Airport. Two crew members were rescued, but 12 people are still missing.
After confirmation, the aircraft model involved in the incident is a Boeing 737-800, manufactured in August 2009, with an age of 15 years. At present, all flights at Wu'an Airport in South Korea have been cancelled for takeoff and landing.
Boeing responded to the Jeju Air plane accident by saying, "We are in contact with Jeju Air regarding flight 2216 and are ready to provide support at any time. We express our deep condolences to the families who have lost loved ones, and we always miss the passengers and crew members
In recent years, there has been a continuous stream of negative news
Boeing's stock price has fallen by 30% this year
In recent years, there have been continuous negative news about Boeing, with multiple models of aircraft experiencing safety accidents. In addition to the aforementioned models, the Boeing 737 MAX aircraft has also experienced several accidents.
Since the beginning of this year, several whistleblowers have successively exposed issues with Boeing's quality and safety controls. Experts have pointed out that the hidden dangers have already been planted.
Peter Robinson, a senior American journalist and writer, believes that for a long time, Boeing has tilted its profit distribution towards shareholders in order to maintain its stock price, resulting in relatively insufficient investment in technological innovation. In order to compete with Airbus' new models, Boeing hastily launched the 737 MAX aircraft, laying hidden dangers for future flight safety. According to a former Boeing quality control manager, Boeing used to assign about 15 quality inspectors per flight, but later reduced it to only retaining one quality inspector per flight. Prior to the two 737 MAX air crashes, Boeing had received multiple reports of issues with the aircraft, but failed to respond promptly and take action.
Red Star Capital noticed that Boeing's stock price has fallen by about 30% this year.
Screenshot of Boeing's stock price trend within the year from Oriental Fortune website
Only received 156 orders in the first half of the year
Boeing has lost nearly $8 billion this year
On August 8th of this year, Boeing welcomed a new CEO, aviation industry veteran Kelly Altberg, who took office.
In the first half of 2024, Boeing only received 156 aircraft orders, compared to a net order quantity of 567 aircraft for the same period the previous year. To rebuild the company's reputation, we must fulfill our commitment to producing high-quality and safe commercial aircraft. At the beginning of his tenure, Ottoberg said in an open letter to employees.
In addition, Boeing's financial report disclosed on October 23 showed that due to factors such as strikes, the company lost nearly $6.2 billion in the third quarter of this year and has lost nearly $8 billion so far this year.
According to reports, Boeing's latest layoffs involve nearly 400 people in Washington state and over 500 people in California. The layoffs include positions such as engineers, personnel, and analysts, affecting Boeing's civilian, defense, and global services departments. Boeing announced in a government filing in mid November that it plans to lay off approximately 2500 employees, and with the latest report of nearly a thousand, Boeing's recent layoffs are estimated to be around 3500.
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