Boeing Shares Plunge Amid Safety Scare After Air India Disaster

Boeing’s stock suffered a sharp decline following a tragic Air India crash involving a 787-8 Dreamliner, deepening investor concerns over the safety of the aerospace giant’s products. The aircraft, carrying more than 240 passengers and crew, including 53 Britons, crashed shortly after take-off from Ahmedabad airport in western India. This marks the first fatal crash involving the wide-bodied 787 aircraft, which had previously enjoyed a strong safety record since its entry into service.

Shares in Boeing fell by $10.99, equivalent to a 5.1 per cent drop, to close at $203.01 on the New York Stock Exchange. The negative trend extended to key suppliers, with shares in Spirit AeroSystems falling 2.7 per cent, and GE Aerospace, which provides engines for the 787, shedding 1.4 per cent. The market reaction underscores growing fragility in investor confidence as Boeing struggles to recover from multiple scandals and setbacks.

Efforts by Chief Executive Kelly Ortberg to rebuild trust in the company have been hindered by continuous challenges. Ortberg, who took over last year, has been working to ramp up production, enhance cash flow, and strengthen ties with suppliers, following years of damage caused by controversies around the 737 Max. The 737 Max programme faced heavy scrutiny after two devastating crashes in 2018 and 2019, leading to a prolonged global grounding of the aircraft.

In a statement, Boeing said, “We are in contact with Air India regarding Flight 171 and stand ready to support them. Our thoughts are with the passengers, crew, first responders, and all affected.” This latest incident raises further questions about the company’s ability to assure the public about the reliability of its planes, especially at a time when it had recently made progress by achieving key production milestones.

May had seen some positive momentum for Boeing, the company having rolled out 38 new 737 Max jets and securing 303 new orders. This included Qatar Airways’ record-breaking order of 130 787s and 30 777Xs. However, this latest disaster places new pressure on Boeing’s leadership to address lingering concerns surrounding the safety and reliability of its entire fleet.

The Air India crash also brought heavy scrutiny as it represents the worst aviation disaster involving Britons since the September 11 attacks. The event further compounds challenges for Boeing, which had already faced criticism earlier this year when a door panel detached mid-flight on an Alaska Airlines 737 Max 9 jet. As investigations into the exact cause of the crash continue, the aviation and financial communities will closely monitor Boeing’s response and its impact on the company’s future trajectory.