Boeing Jet Crashes After Takeoff From Jakarta

A Boeing passenger plane operated by Sriwijaya Air crashes into the sea off Indonesia after taking off from Jakarta.
Author:
Updated:
Original:

A Boeing  (BA) - Get Report passenger plane operated by Sriwijaya Air crashed into the sea off the coast of Indonesia after taking off from Jakarta.

The plane, a 737-500 aircraft, was 26 years old, much older than the Boeing 737 MAX that was grounded in March 2019 after two fatal crashes, including a Lion Air crash in Indonesia that killed 189 people in 2018, according to a report from Bloomberg. 

The Sriwijaya Air flight had 62 people aboard and was headed to Pontianak on the island of Borneo from the nation's capital. Twelve on board were crew members.

Authorities located wreckage from the jet and confirmed it was from the Boeing 737-500. Authorities also found human body parts and what appeared to be passenger luggage, a Jakarta police spokesman said, The Wall Street Journal reported.

The plane was believed to have crashed around Kepulauan Seribu, a series of islands near Jakarta, the country’s search and rescue agency said, the Journal reported. 

Sriwijaya Air said it was investigating the matter. “Our prayers are with all passengers, crew and families,” Sriwijaya Air said in a statement.

A Boeing spokeswoman said the company was aware of media reports from Jakarta and was "closely monitoring the situation." 

“We are working to gather more information,” Boeing spokeswoman Zoe Leong said in a statement. 

FlightRadar24, a website that monitors aircraft movements, tracked the plane plunging to 250 feet from 10,900 feet, Bloomberg reported. 

The crash comes just days after jetmaker Boeing agreed to pay a $2.5 billion fine over fraud and conspiracy charges linked to its 737 MAX jet program.

The settlement involves a criminal penalty of $243.6 million, based on the conduct of two former MAX program technical pilots, and the establishment of a $500 million fund to provide compensation for families of the victims of the Lion Air and Ethiopian Airlines crashes, the company said.

Boeing said the deferred prosecution agreement with the Department of Justice, which it entered into on Thursday, will impact the company's fourth-quarter earnings by $743.5 million.

"I firmly believe that entering into this resolution is the right thing for us to do - a step that appropriately acknowledges how we fell short of our values and expectations," said CEO Dave Calhoun. "This resolution is a serious reminder to all of us of how critical our obligation of transparency to regulators is, and the consequences that our company can face if any one of us falls short of those expectations."

Boeing's 737 MAX was approved to fly again by the Federal Aviation Administration in November.

Boeing is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.