Why grounding 737 MAX jets is a big deal for Boeing

New York (CNN Business)The 737 MAX is Boeing’s most important plane, and China is Boeing’s most important market. That’s why China’s decision to ground all Boeing 737 MAX 8 jets operated by its airlines is so significant. Boeing has predicted that China will soon become the world’s first trillion-dollar market for jets. By 2037, Boeing estimates China will need 7,690 commercial jets to meet its travel demands. Airbus (EADSF) and Commercial Aircraft Corporation of China, or Comac, are vying with Boeing for the vast and rapidly growing Chinese market. Comac’s first plane, designed to compete with the single-aisle Boeing 737 MAX and Airbus A320, made its first test flight in 2017. It is not yet ready for commercial service, but …

Boeing stock falls sharply as crisis mounts over 737 MAX crashes

New York (CNN Business)The tragic Ethiopian Airlines crash on Sunday is raising doubts on Wall Street about Boeing. Boeing declined as much as 13.5% on Monday before recovering somewhat. If Boeing closes down more than 10.4%, it would be its worst day since September 17, 2001, the first day of trading following the 9/11 terror attacks. The stock’s decline on Monday played an outsized role dragging down the 30-stock Dow Jones Industrial Average. Boeing is the index’s most expensive stock — and the index is price-weighted. The Ethiopian Airlines crash comes after a 737 MAX flown by Lion Air crashed off the coast of Indonesia in late October. All 189 passengers onboard the Lion Air flight died. Boeing said in …