Boeing Goes Down When South Korea Orders B737-800 Inspection

Boeing the company's shares fell nearly 5% in pre-market trading on Monday after South Korea ordered an inspection of all B737-800 planes involved in the deadly Jeju Air crash over the weekend.

Acting President Choi Sang-mok ordered the transport minister to conduct an emergency safety inspection of the entire airline operating system in the countrywhile officials from the Ministry of Land, Infrastructure and Transport (MOLIT) stated that they would conduct a “comprehensive special inspection of the B737-800”.

Boeing shares listed on the New York Stock Exchange fell 4.7% in pre-market trading, then recovered and were down 3.6% as of 6:45 a.m. ET.

Uncertainty surrounds the exact circumstances of the disaster, which killed 179 of the 181 survivors on board the plane on Sunday. The plane landed without proper equipment at South Korea's Muan International Airport, skidded off the runway, struck a wall and burst into flames. Two crew members survived and were pulled from the wreck.

At Monday's briefing, MOLIT reported that the plane's pilot mentioned a “bird strike” a few minutes after the airport's control tower issued a warning about bird activity. The pilot also notified the control tower of a “go-around,” citing the failed landing attempt, and declared “Mayday,” said Yu Kyung-soo, director of aviation safety policy at MOLIT, according to NBC News Translation.

Two black boxes were recovered from the plane and sent for analysis. Meanwhile, the U.S. National Transportation Safety Board is leading a team of U.S. investigators, including the Federal Aviation Administration and Boeing, to assist South Korea's Aircraft and Rail Accident Investigation Board in investigating the crash. Engine maker CFM International, a joint venture between GE Aerospace and France's Safran Aircraft Engines, will also be involved in the investigation.

MOLIT officials said Monday they were checking the concrete wall that the plane hit for a connection to the accident.

They also said they would inspect the B737-800.

Boeing's popular single-aisle aircraft has been in service for almost thirty years, with development beginning earlier troublesome B737-Max jets from an American manufacturera later iteration of the model.

The B737-800 is widely used by South Korea's low-cost carriers, MOLIT said on Monday, and Jeju Air is the largest operator with 39 of the jets. Other operators include T'way Air, Jin Air, Eastar Jet and Air Incheon, while flag carrier Korean Air has two models.

“We will be checking compliance with various regulations, including operational documentation, pre- and post-flight inspections and maintenance,” Ju Jong-wan, director of the Aviation Policy Office at MOLIT, said on Monday, as translated by NBC News.

“We plan to review the tightening regulations on bird strikes identified as a potential cause of accident, especially for new airports under construction.”

A Boeing spokesman told CNBC: “We are in contact with Jeju Air regarding Flight 2216 and stand ready to support them. We express our deepest condolences to the families who lost their loved ones and our thoughts remain with the passengers and crew.”

Local media reported that another Jeju Air plane of the same model returned to South Korea's Gimpo Airport shortly after takeoff on Monday after landing gear problems were reported.

At a news conference on Sunday, Jeju Air management support office head Song Kyung-hoon said the airline would provide support to the victims and their families and that the plane was covered by insurance worth $1 billion. according to the news site Yonhap.

Song also denied that mechanical failures or inadequate safety preparations played a role in the crash.

“This disaster is not about any maintenance issues. When it comes to aircraft maintenance, there can be absolutely no compromise,” Song said.

Jeju Air shares hit an all-time low on Monday and closed down 8.65%, according to FactSet data.

— CNBC's Yeo Boon Ping contributed to this story.