Ethiopian Airlines crash: Pilots of doomed Boeing 737 Max reported control problems

The ban on the Boeing 737 MAX aircraft spread worldwide after US President Donald Trump joined Canada and other countries in grounding the aircraft amid intense pressure about the safety concerns

Southwest shares initially traded higher on Wednesday before turning negative, losing as much as 3% once Trump announced the decision.

A reduction in the number of planes in an airline's inventory is also likely to drive up the cost of plane tickets.

By banning Max 8 and 9 models of the aircraft from flying in the USA, the FAA has thrown a major logistical challenge at American and Southwest Airlines, which are the two biggest users of the plane. Southwest Airlines Co. and United Continental Holdings Inc.

The Federal Aviation Administration identified similarities between the crash of an Ethiopian Airlines flight and the Lion Air crash in Indonesia, leading the agency to ground all Boeing 737 Max planes on Wednesday.

Talking with US Rep. Dan Kildee (D-MI) Wednesday, Keilar asserted that the plane crashed because Boeing had failed to implement a pilot software upgrade in January, as the Federal Aviation Administration (FAA) was non-operational due to the shutdown.

"Our teams will make every effort to rebook customers as quickly as possible, and we apologize for any inconvenience", American Airlines said in a statement.

Boeing immediately responded with a statement of its own backing the decision, as if it had any real choice or say in the matter.

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He added: 'We are supporting this proactive step out of an abundance of caution.

'We are doing everything we can to understand the cause of the accidents in partnership with the investigators, deploy safety enhancements and help ensure this does not happen again'. Canada issued the directive just hours earlier.

Bernstein Research analyst Daniel Roeska said the airline may lose around 400,000 Norwegian krone (€ 41,000, $46,000) per 737 MAX per day if it's forced to keep the planes grounded for a prolonged period of time. But they have other options, Mann said. However, a more formal fix to redesign it won't be mandated until April, the FAA said Monday.

About two-thirds of the Boeing 737-Max 8, the company's newest plane, were pulled from service within two days of Sunday's crash. The causes of both crashes are still under investigation.

Trump said any airplane now in the air will go to its destination and then be grounded.

Pilots in the United States had complained late past year about problems controlling the Boeing 737 Max 8 during take-off.

The Ethiopian Airlines flight crashed Sunday shortly after taking off from the capital, Addis Ababa, killing 157 people, including Israelis Shimon Re'em and Avraham Matsliah.

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"It's a awful, bad thing".

Tim Ghriskey, chief investment strategist at Inverness Counsel in NY, said the grounding gives Boeing time to address any problems and not face another potential disaster. But he said he was thankful the FAA made a decision to ground the Max 8 jets while the investigation continues.

Air Canada and WestJet Airlines Ltd. confirmed Wednesday they were in the process of grounding their Max 8s.

Elwell said he couldn't detail what was found on the ground because the investigation is in its early stages and is continuing.

The carriers use the commuter planes daily to ferry passengers on routes that include Vancouver-Calgary and Vancouver-Montreal as well as March break favourites such as Toronto-Puerto Vallarta and Vancouver-Honolulu.

This is the second time the FAA has halted flights of a Boeing plane in six years. Prior to that, the last such action halting flights on a fleet occurred in 1979 on the Douglas DC-10.

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