Boeing Shares Spike On Report ‘Bird Strikes’ Involved In Ethiopian Airlines Crash
Boeing shares are spiking, lifting the Dow, after the Wall Street Journal reported that US aviation authorities now believe a ‘bird strike’ may have triggered the sequence of events that led to the crash of Ethiopian Airlines flight 302.
Four weeks after faulty sensor data led a 737 MAX jet to crash in Indonesia last year, a high-ranking Boeing Co. executive raised and dismissed the possibility of a bird collision triggering a similar sequence of events that could cause a second accident.
Fears about the potential for a ‘bird strike’ to damage sensors on the jet appear to have been validated, though Ethiopian authorities aren’t convinced.
US aviation authorities regard a collision with one or more birds as the most likely reason for trouble with the sensor, according to industry and government officials familiar with the details of the crash investigation.
Ethiopian authorities disagree but haven’t provided any specifics to support their conclusion.
Boeing shares spiked 3% in premarket trading on the news, though WSJ’s report doesn’t exactly absolve Boeing. The company must now answer why, if senior executives feared ‘bird strikes’ could be a problem, it persisted in allowing MCAS, its anti-stall software that’s believed to have contributed to two deadly crashes, to rely on only one sensor.
Algos clearly interpreted the news as positive…after all, every American who has seen the movie ‘Sully’ probably remembers how much damage a flock of birds can do.