Boeing Co. (BA) - Get Boeing Company Report shares resumed their decline Wednesday after Canada's Transport Minister said he would restrict the use of 737 MAX 8 and MAX 9 jets based on new information that links the aircraft's deadly crash in Ethiopia and Indonesia.
Marc Garneau told reporters in Ottawa that Boeing jets won't be able to land in, or fly out of, Canadian airspace. He also said the nation's two biggest carriers, Air Canada and West Jet, did not protest the decision, adding he won't hesitate to take "swift action" if officials find any more safety issues with Boeing planes.
"As a result of new data we received this morning, and had the chance to analyse, and as a precautionary measure, we are issuing a safety notice that ... restricts the operation of any Boeing MAX 8 or MAX 9 aircraft, domestic or foreign, from arriving or departing over Canadian airspace," Garneau said.
Boeing shares were marked 0.27% lower on the session and changing hands at $374.41 each following Garneau's comments, paring an earlier gain of around 1.2% that had halted a two-day skid for the stock that had wiped out more than $26 billion in market value.
Canada is the latest jurisdiction to have grounded the MAX 8 jet, in defiance of safety assurances from the Federal Aviation Administration, following Sunday's crash of Ethiopian Airlines flight ET302 from Addis Ababa that killed all 157 passengers and raised significant concerns for Boeing's most profitable aircraft.
The plane's safety record, however, was defended by both Boeing CEO Dennis Muilenberg in a phone conversation with President Donald Trump, according to multiple media reports, and the FAA itself, which reiterated an earlier statement on the MAX' air worthiness.
"The FAA continues to review extensively all available data and aggregate safety performance from operators and pilots of the Boeing 737 MAX," the agency said in a statement Tuesday. "Thus far, our review shows no systemic performance issues and provides no basis to order grounding the aircraft. Nor have other civil aviation authorities provided data to us that would warrant action."
"In the course of our urgent review of data on the Ethiopian Airlines Flight 302 crash, if any issues affecting the continued airworthiness of the aircraft are identified, the FAA will take immediate and appropriate action," it added.
Boeing has insisted it has "full confidence in the safety of the MAX. ... We'll continue to engage with (all civil authorities) to ensure they have all the information they need to have the confidence they need (to) safely continue to operate their fleets or return them to service."
"It is also important to note that the Federal Aviation Administration is not mandating any further action at this time, and based on the information currently available, we do not have any basis to issue new guidance to operators," the company said.