Another Boeing aircraft crashed on Tuesday in Tehran, Iran.
The flight was a Boeing 737-800 aircraft with Ukraine International Airlines, taking off from Tehran to Kyiv,
Ukraine. All 176 people on the plane died, including 167 passengers and 9 crew members. The aircraft is a different make from the 737-Max that crashed twice in 2019.
“This is a tragic event and our heartfelt thoughts are with the crew, passengers, and their families," Boeing said in a
statement. "We are in contact with our airline customer and stand by them in this difficult time. We are ready to assist in any way needed.”
The cause of the crash is currently unknown, but all parties responsible are looking into the problem. Part of the cause of the two 737-Max crashes in 2019 was a software problem in the airplane.
Boeing shares fell 1.27% to $332.99 Wednesday.
This is a huge negative for Boeing, of course. But here are the particulars of the predicament this puts the company in:
Boeing has already pushed back production of its 737-Max, as the Federal Aviation Administration has not yet
approved the fixes made to the aircraft. The company is hoping it doesn’t have any structural issues with the 737-800.
Boeing also wants to build back its credibility with the FAA, so the crash in Iran does no favors for the company.
Boeing is also strongly considering borrowing money to pay back the families and airlines affected by the two crashes in 2019. Boeing, in excellent financial position, wants to conserve cash for when it's able to resume production of the 737-Max. Now, with almost no visibility on production of two different aircraft makes and potentially a slight increase in the company’s debt level, uncertainty is seemingly as high as it can be for the stock.