Boeing Falls - Black Boxes of Crashed Indonesia Plane Are Located

Boeing falls after a Boeing 737-500 passenger plane operated by Sriwijaya Air crashes into the sea Saturday off the coast of Indonesia.
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Boeing  (BA) - Get Report shares declined Monday after a Boeing 737-500 passenger plane operated by Sriwijaya Air crashed Saturday 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.

Black boxes of the plane have been located and communications data has been obtained, CNN reported. 

The head of Indonesia's National Search and Rescue Agency said late Sunday that the two black boxes from the Sriwijaya Air flight were believed have been detected within 150 meters to 200 meters of the crash site, according to CNN.

The Boeing 737-500 jet disappeared minutes after taking off from Jakarta, Indonesia’s capital, during heavy rain on Saturday. 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.

Boeing shares fell 1.81% to $206.02 in trading Monday.

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."

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