In the early hours of Monday, a 737-800 Boeing aircraft of China Eastern Airlines (600115.SS), with 132 people on board, crashed in the mountains of southern China.
The plane reportedly crashed after a sudden descent from cruising altitude and till now, rescue workers are yet to find any sign of survivors.
The Civil Aviation Administration of China confirmed the plane crash.
“On March 21, 2022, a Boeing 737 of China Eastern Airlines lost contact over Wuzhou during the Kunming-Guangzhou flight. The plane has now been confirmed to have crashed. There were 132 people on board, including 123 passengers and 9 crew members,” the agency said.
According to the Aviation Safety Network database, the crash is China’s deadliest airline crash since 1994 and the deadliest ever for China Eastern Airlines.
However, since the crash, Investors King gathered that the U.S. planemaker, Boeing Co (BA.N) and its suppliers recorded a drop in their shares.
While Boeing’s stock fell by 4.5% in Monday trading, American Depositary Receipts (ADR)of China Eastern Airlines (CEA) declined by 6.6%. An ADR is the U.S.-listed stock in a foreign company.
According to Reuters, parts suppliers Spirit AeroSystems Holdings Inc (SPR.N), Hexcel Corp (HXL.N) and Triumph Group Inc (TGI.N) were down between 1% and 4%.
Yahoo Finace reports that shares of the Chicago-based company were down to $184.22 each on Monday morning from $192.83 at closing on Friday afternoon.
From 2013 to 2019, Boeing spent over $60 billion on dividends and stock buybacks, twice as much as the development costs of the 787.
In 2020, Boeing’s revenue was $11.8 billion as a result of the pandemic slump. Due to higher sales in other divisions and an influx in deliveries of commercial jetliners in 2021, revenue increased 44%, reaching nearly $17 billion.
Meanwhile, Chinese state media said the airline has grounded its 737-800 fleet, which according to the flight tracking website, had 109 such planes.
Boeing is among the largest global aerospace manufacturers. It is the third-largest defends contractor in the world based on 2020 revenue, and is the largest exporter in the United States by dollar value.
IBEDC Disconnects UCH Over N500m Debt, Critical Services Affected
The University College Hospital (UCH) in Ibadan, Oyo State, experienced a disruption in its power supply after the Ibadan Electricity Distribution Company (IBEDC) disconnected the hospital over a debt amounting to N500 million.
Dr. Jesse Otegbayo, the Chief Medical Director of UCH, confirmed the disconnection but refrained from elaborating on the exact cause.
IBEDC’s spokesperson, Busolami Tunwase, acknowledged the outstanding debt owed by UCH but denied that the disconnection was intentional.
Tunwase stated that while UCH owed the substantial amount, the power outage was due to a technical fault in the area, coinciding with the debt situation.
Despite repeated attempts to engage UCH in discussions to settle the debt, IBEDC had resorted to disconnection as a last resort.
The disconnection poses significant challenges to UCH’s critical services, affecting patient care and hospital operations.
While IBEDC emphasized its understanding of the hospital’s importance and commitment to resolving the issue amicably, the situation underscores the financial strains faced by healthcare institutions and the essential need for reliable power supply.
Efforts to negotiate and find a resolution between UCH and IBEDC are ongoing to restore normal operations and ensure uninterrupted healthcare services.
Oil and Gas Dealers Threaten Withdrawal as 70% of Downstream Businesses Collapse
The downstream oil sector in Nigeria faces a looming crisis as oil and gas dealers, represented by the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), issue a stern warning of potential service withdrawal.
In a recent resolution following their executive committee meeting in Abuja, NOGASA expressed grave concerns over the collapse of approximately 70% of businesses in the industry due to the harsh operating environment.
President of NOGASA, Benneth Korie, highlighted the dire situation, emphasizing the challenges faced by oil marketers in funding operations amidst soaring bank interest rates.
Korie underscored the overwhelming burden faced by operators who are compelled to acquire funds at exorbitant interest rates upwards of 30%, exacerbating financial strain and hindering business viability.
The primary demand voiced by NOGASA is the pegging of the foreign exchange rate at N750/$ to facilitate refinery operations and stimulate the production of refined products domestically.
Failure to address these pressing issues, Korie warned, could result in the withdrawal of services by NOGASA’s over 200 members starting from the next month.
The downstream oil crisis coincides with heightened anticipation for the release of refined petroleum products from the Dangote and Port Harcourt refineries, seen as critical for alleviating supply shortages nationwide.
However, amidst forex crises and inflationary pressures, operators in the oil and gas sector confront mounting economic challenges, necessitating urgent government intervention.
As Nigeria navigates through turbulent economic waters, stakeholders eagerly await decisive action from authorities to salvage the downstream oil sector from imminent collapse and avert potential disruptions in fuel supply chains.
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