"The Digital Flight Data Recorder (DFDR) and Cockpit Voice Recorder (CVR) of ET302 have been Recovered," the state-owned airline announced on Twitter.
China - an important market for Boeing - became the first country to ground the 737 MAX-8 on Monday. Ethiopian Airlines did the same, saying the decision came as an "extra safety precaution."
Only the flight data and cockpit conversation contained in the doomed aircraft's black box can provide tangible evidence of what may have caused the latest accident - technical problems, pilot error or a combination of factors.
Rescue workers carry wreckage at the crash site of Ethiopia Airlines Boeing 737 Max-8. Source: AP
Weather conditions were good in the Ethiopian capital at the time of the flight.
Insurers face large claims
Boeing Co’s insurers face big claims from families of the victims of the Ethiopian Airlines crash, coming less than six months after the crash of the same type of Boeing aircraft in Indonesia, insurance and aviation sources said.
An Ethiopian Airlines passenger jet bound for Nairobi crashed minutes after take-off on Sunday, killing all 157 people on board, raising questions about the safety of the Boeing 737 MAX 8, a new model that also crashed in Indonesia in October.
While the initial insurance payments will be made by Ethiopian Airlines’ insurers, they may look to recoup their money from Boeing’s insurers if they can prove that the aircraft was faulty, the sources said.
Photographs of the crew members of the Ethiopian Airlines flight ET 302 that crashed are displayed during a memorial service. Source: AAP
Initial payments to the passengers’ families are bound by the Warsaw and Montreal conventions, but those payouts could be much higher if families pursue legal claims, particularly through U.S. courts, said Clive Garner, head of law firm Irwin Mitchell’s travel litigation group in London.
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“If there were to be anything defective in terms of the plane or any of its components, then it would be possible to bring a claim against the manufacturer as well as the airline,” he added.
Insurers typically form a consortium to share the risks of large claims, with the lead insurer taking a larger proportion of the risk. The insured value of the plane itself was likely around $50 million, according to industry sources.
Willis Towers Watson was the insurance broker for Ethiopian Airlines, while Chubb was the lead insurer, a Willis spokeswoman said on Monday. A Chubb spokesman declined to comment.
Britain’s Global Aerospace was the lead insurer for Boeing and also for Lion Air, which operated the plane that crashed in October, said Global Aerospace Chief Executive Nick Brown.
Boeing shares fall
Shares in Boeing fell 5.3 percent for the day, paring earlier losses of more than 12 percent that threatened to wipe out tens of billions of the company's market value.
Two of the company's highly popular 737 MAX 8 jets have crashed in five months, after the latest tragedy killed all 157 passengers crew aboard shortly after takeoff from Addis Ababa.
The benchmark Dow Jones Industrial Average, in which Boeing's stock is heavily weighted, rose 0.8 percent to 25,650.88.
