Sharp decline in Boeing shares after the China Eastern accident: the company will no longer use the 737-800 models

The Boeing shares fell more than 5% earlier in early trading on the Monday after his plane belonging to China Eastern Airlines, with 132 people on board, crashed in the mountains of southern China.

The cause of the crash was not immediately known and media reported that rescuers had found no signs of survivors. Boeing said it was working to collect more information.

“I can confirm that the plane crashed”China Eastern Airlines said in a statement. Its US-listed shares plunged as much as 15.8% in pre-open trading.

The plane involved in the accident was a plane six-year-old Boeing 737-800according to Flightradar24, a predecessor to the 737 MAX model.

The popular 737-800 variant has a maximum seating capacity of 189 and is powered by a CFM-56 engine, according to the planemaker’s website.

The engines are made by a joint venture between General Electric Co and France’s Safran SA.

After the accident, China Eastern Airlines has grounded all Boeing 737-800 planescompany officials said.

The accident occurs at a time when Boeing is inching toward a regulatory approval in China for the 737 MAX aircraft, his main source of income, after two fatal accidents on Indonesia and Ethiopia that led to its grounding in the world’s largest domestic aviation market.

The plane is an integral part of Boeing’s recoverywhich is ramping up production amid a rebound in travel demand.

China Eastern shares also posted losses of up to 8%. The airline confirmed that there are deaths in the accident and offered its condolences.

“The company expresses its deepest condolences to the passengers and crew members who died in the accident”indicated a statement from the company addressed to the Shanghai Stock Exchange, where it is listed, without giving any number of victims.

Keep reading:

The shocking video of the moment the China Eastern plane crashed