Boeing 737 Max: More airlines ground the the revamped narrow-body plane

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Published: March 12, 2019 7:31:09 AM

Boeing tumbled the most on the S&P 500 Index on Monday as questions swirled around the newest version of its 737 family, a cash cow that generates almost a third of the company’s operating profit.

Boeing 737 Max: More airlines ground the the revamped narrow-body plane

Boeing Co. is grappling with a crisis after a second 737 Max plane crashed in five months. While investigators are still piecing together why an Ethiopian Airlines 737 Max 8 plunged into a hillside minutes after takeoff Sunday, killing 157 people, China and Indonesia have ordered carriers to ground the revamped narrow-body plane. The U.S. Federal Aviation Administration said Monday that the jet model remains airworthy.

Boeing tumbled the most on the S&P 500 Index on Monday as questions swirled around the newest version of its 737 family, a cash cow that generates almost a third of the company’s operating profit. The Ethiopian disaster followed the crash of a Lion Air 737 Max off the coast of Indonesia in October that killed 189 passengers and crew.

Here are the latest developments (time stamps are local time in Hong Kong):

Aeromexico Grounds Boeing 737 Max Planes (8:05 a.m.)
Mexico’s Grupo Aeromexico SAB became the latest airline to suspend Boeing 737 Max flights. The airline said it would temporarily ground its six Max jets until it has more information about the Ethiopian Airlines disaster.

Hours earlier, Aeromexico said it was confident in its Max fleet and the aircraft were in perfect condition.

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