Air India crash: Boeing 787 Dreamliner goes down in Ahmedabad, Boeing stock plunges 7% amid global safety fears
Air India Flight 171 goes down in Ahmedabad,
Boeing stock plunges 7%
as safety fears explode:
Boeing is once again under intense scrutiny after one of its aircraft—
a 787 Dreamliner operated by Air India
—crashed during landing in Ahmedabad, India, early today. The incident has sparked investor panic, raising global concerns over the safety of Boeing aircraft, especially the 787 model. The flight was reportedly en route from London to Ahmedabad when it suffered a critical failure during landing. Multiple emergency services were deployed to the site. As of now, details on casualties or survivors have not been confirmed publicly, but the incident has sent shockwaves through the aviation industry and rattled investor confidence in Boeing.
According to CNBC-TV18 and ForexLive, this is the first fatal crash involving a 787 Dreamliner, which makes the event particularly alarming. Boeing's share price dropped to
around $173
in early trading, marking one of the company's steepest single-day declines in months.
How much did Boeing stock drop after the crash?
Stock Reaction
: Boeing stock plunged by
7%
shortly after reports of the crash surfaced.
Play Video
Pause
Skip Backward
Skip Forward
Unmute
Current Time
0:00
/
Duration
0:00
Loaded
:
0%
0:00
Stream Type
LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
1x
Playback Rate
Chapters
Chapters
Descriptions
descriptions off
, selected
Captions
captions settings
, opens captions settings dialog
captions off
, selected
Audio Track
default
, selected
Picture-in-Picture
Fullscreen
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text
Color
White
Black
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Text Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Transparent
Caption Area Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Transparent
Semi-Transparent
Opaque
Font Size
50%
75%
100%
125%
150%
175%
200%
300%
400%
Text Edge Style
None
Raised
Depressed
Uniform
Drop shadow
Font Family
Proportional Sans-Serif
Monospace Sans-Serif
Proportional Serif
Monospace Serif
Casual
Script
Small Caps
Reset
restore all settings to the default values
Done
Close Modal Dialog
End of dialog window.
Price Movement
: Shares dropped from around
$186
to
$173
within hours on
June 12, 2025
.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Linda Kozlowski, 67, Shows Off Her Perfect Figure In A New Photo
Today's NYC
Undo
Why did Boeing stock plunge after the Air India Dreamliner crash?
The sudden drop in Boeing stock is largely driven by fears surrounding the safety of the 787 Dreamliner. Over the past decade, Boeing has faced multiple setbacks with the 787 series—from battery fires to structural and manufacturing flaws. This latest crash could mark a turning point, as it has resulted in actual loss of aircraft and possibly life, though that part is still developing.
Investors are now questioning whether more regulatory actions or flight groundings could follow. Historically, similar incidents—like the two fatal crashes involving the 737 MAX—led to worldwide grounding of the aircraft and billions in losses for Boeing. The company has barely recovered from that episode, and this crash has revived those fears.
Live Events
Adding to the pressure is the fact that the Indian Directorate General of Civil Aviation (DGCA) and FAA are expected to begin a deep investigation. If any fault is found in the aircraft design, software, or Boeing's manufacturing processes, it could have long-lasting financial and reputational consequences.
What does this mean for Boeing's 787 Dreamliner program?
The crash of Air India Flight 171 puts a harsh spotlight back on Boeing's 787 Dreamliner line. Despite being touted for its fuel efficiency and long-haul comfort, the Dreamliner has been plagued by a series of technical issues. In 2023 and early 2024, whistleblowers raised alarms about loose fasteners, improper fuselage fittings, and overlooked safety inspections during assembly.
Earlier this year, the FAA launched a 90-day audit into Boeing's quality control processes after multiple reports of inconsistent safety checks. The Dreamliner was already under the microscope, and this crash could push regulators to take firmer action—possibly grounding parts of the 787 fleet until further inspections are complete.
Air India, owned by the Tata Group, had recently begun expanding its international fleet, including heavy investments in Dreamliners. Now, the Indian airline may have to reconsider its fleet strategy if public confidence doesn't return quickly.
Are analysts and regulators losing confidence in Boeing again?
Before today's crash, some analysts were starting to turn bullish on Boeing, with several firms including
Jefferies
and
Bank of America
recently raising their price targets. The appointment of
new CEO Kelly Ortberg
earlier this year was also seen as a positive step toward improving the company's safety culture.
But this new crash is testing that optimism. Industry experts warn that even a single fatal incident—especially involving a model already under scrutiny—can have huge ripple effects on orders, deliveries, and share performance.
From a regulatory standpoint, this crash could spark not only investigations in India but also a
global review of 787s
currently in service. Given the growing list of prior incidents—from battery fires in 2013 to the 2024 reports of incomplete inspections—this event might be the tipping point.
Why did the Boeing 787 crash in Ahmedabad and what do we know so far?
Flight AI 171 had just taken off from Ahmedabad, reportedly heading toward London, when it encountered trouble. According to initial reports, the pilot sent out a mayday distress call before losing contact. The aircraft then crashed into a residential building, leading to casualties both onboard and possibly on the ground. DGCA and FAA investigations are underway, and Boeing has said it's 'gathering more information.' The exact cause is still unknown, but this event has already prompted global concern over the 787 fleet.
How did the stock market react to the Air India Boeing 787 crash?
The crash triggered an immediate reaction in the stock market. In U.S. premarket trading, Boeing shares plunged 7–8%, with figures ranging from –7.5% to –8.1% reported. By the time U.S. markets opened around 11:46 AM UTC, Boeing's share price had slightly recovered, sitting at $214.00, reflecting a -0.8% intraday drop.
The impact wasn't limited to Boeing alone. Suppliers and partners also took a hit:
GE Aerospace, which makes the 787's GEnx engines, dropped ~4.7%
Rolls-Royce, another engine supplier, fell ~2.5%
Spirit AeroSystems, responsible for fuselage sections, slid ~2.9%
Is this Boeing 787 Dreamliner crash a one-off or part of a bigger safety issue?
This tragedy brings back painful memories of Boeing's troubled past, especially the 737 Max crashes in 2018 and 2019, which killed 346 people. Though the 787 Dreamliner has had a solid safety record until now, it wasn't free from scrutiny. Earlier concerns involved:
2013 battery fires, leading to a global FAA grounding of the Dreamliner fleet
2019–2024 manufacturing complaints, with whistleblowers accusing Boeing of shortcuts and quality lapses in 787 assembly
A broader cultural shift inside Boeing, where critics allege cost-cutting took priority over engineering, particularly after the McDonnell Douglas merger
This crash, being the first fatal accident involving the 787, may prompt fleet-wide inspections, depending on what the investigation uncovers.
What are regulators like the FAA and DGCA likely to do next?
The DGCA (India) and the FAA (U.S.) have both launched investigations, and their findings could have serious global implications. If any design or manufacturing flaws are discovered, it could lead to:
Temporary groundings of the 787 Dreamliner fleet
Enhanced safety inspections
New regulatory mandates
Boeing has previously undergone 90-day FAA audit plans and paid over $1.1 billion in 2024 to settle past regulatory issues linked to the 737 Max tragedies. With this new incident, global aviation safety bodies such as EASA may also become involved.
Will Boeing recover, or is this another major setback for the aviation giant?
Investor sentiment is split. Analysts from Jefferies and Bank of America had recently upgraded Boeing to a 'Buy', citing improved production discipline, delivery backlog, and better leadership under CEO Kelly Ortberg. Some saw the $260 target price as realistic.
But with the Air India crash, even optimistic forecasts are now under review. On platforms like Reddit, aviation communities are deeply divided. Some believe the drop is a "knee-jerk reaction" and a rebound could follow. Others argue trust in Boeing's long-term safety is still fragile, and this crash could reignite global skepticism.
What should flyers and investors watch for next?
The
Boeing 787 Dreamliner crash
of Air India AI 171 is a turning point. The industry is watching for:
The outcome of DGCA and FAA investigations
Boeing's internal response and possible 787 fleet reviews
Any signs of recurring safety or manufacturing flaws
How the stock market reacts in the coming days as new information surfaces
For now, Boeing's $214 share price may hold steady, but its long-term trajectory depends on whether this crash is ruled an isolated technical failure—or a symptom of deeper systemic issues.
FAQs:
Q1: What happened to Air India flight AI 171 on June 12, 2025?
Air India AI 171, a Boeing 787, crashed near Ahmedabad after takeoff, killing at least 30.
Q2: Is Boeing 787 Dreamliner safe after the AI 171 crash?
The crash has raised global safety questions, and investigations by FAA and DGCA are ongoing.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
40 minutes ago
- Time of India
Indices declines 0.7% amid rising oil prices and geopolitical tensions
Mumbai: India's equity indices ended 0.7% lower on Friday after falling as much as 1.6% earlier in the day after Israel's strikes on Iran raised fears of supply disruption of crude oil and a wider conflict in the Middle East. Brent Crude Futures jumped over 7% to $74.6 per barrel on Friday. Analysts said the underlying bullish undertone helped the market cut a portion of its losses in Friday's trading session. "Despite the bearish news flows, the decline in the market was limited as benchmark Nifty held the key support level of 24,460 and recovered the losses made in the early trading session," said Akshay Chinchalkar, head of research, Axis Securities. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 23.7% Returns in last 5 years with Shriram Life's ULIP Shriram Life Insurance Undo The NSE Nifty fell 0.7%, or 169.60 points, to finish at 24,718.60. The BSE Sensex moved 0.7%, or 573.38 points, lower at 81,118.60. Both indices declined by over 1% each in the past five trading sessions. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Israel has launched unprecedented strikes on Iran, targeting its nuclear programme and military leaders. The event sent oil prices soaring on worries that an escalation could disrupt supplies from the oil-rich region. Iran is one of the world's biggest oil producers. Brent crude has surged about 14% in the past two days. At home, the Volatility Index or VIX-the market's fear gauge-gained 7.6% to 15.08 on Friday, indicating traders expect higher risks in the near term. Live Events Agencies Analysts do not expect a bigger slide unless key support levels of 24,450-24,500 are breached. "Till the support levels are intact, any declines are expected to be bought into," said Ruchit Jain, vice president- head, technical research, Motilal Oswal Financial Services . "Nifty is likely to witness time-wise correction and struggle to move above 25,000 to 25,200 levels." The Nifty Mid-cap 150 and the Small-cap 250 indices declined 0.4% each. In the past week, the mid-cap index shed 1.2% while the small-cap index fell 0.44%. Out of the 4,122 shares traded on the BSE, 1,401 advanced, while 2,595 declined. Foreign portfolio investors (FPIs) sold shares worth a net of ₹3,831 crore on Friday. Their domestic counterparts sold shares worth ₹9,394 crore. In June, overseas investors sold shares worth ₹5,079.8 crore.
Hindustan Times
an hour ago
- Hindustan Times
Tata Group needs to fine-tune key aspects of Air India's operations: Praful Patel
Mumbai: Former civil aviation minister Praful Patel has called on the Tata Group to fine-tune key aspects of Air India's operations, a day after the airline's Boeing 787 Dreamliner aircraft with 242 people onboard crashed shortly after takeoff in Ahmedabad. At least 265 people have been confirmed dead as of Friday, including students at a medical college's hostel and others in a residential area near the Ahmedabad airport where the plane went down. 'After three-and-a-half years of the takeover of Air India by the Tatas, the management needs to fine-tune various aspects of running a world-class airline, including maintenance,' Patel told reporters at the Nationalist Congress Party's office in Mumbai on Friday. The 68-year-old was the civil aviation minister in the Congress-led United Progressive Alliance government when Boeing introduced the Dreamliners in 2011. Asked about India's proficiency in maintaining and repairing aircraft, Patel expressed concern over the 'under-utilisation' of domestic facilities. Before the Tata takeover in 2022, most of Air India's planes were maintained by Air India Engineering Services Limited, the country's largest aircraft maintenance company, which is government-owned. However, many planes are now being managed by other agencies, he said. 'We have a world-class set-up, but it is surprising why some planes of Air India are sent outside the country for maintenance. Air India Engineering Services Limited has always maintained Air India for a long time, and their services should be utilised. It is surprising that aircraft are sent outside. Boeing's maintenance and repair facility at Nagpur has a good track record. However, the facility has been underutilised,' he added. Terming the accident a temporary setback, Patel said India's aviation sector remains largely well-managed. 'We have potential for growth and a need for more aircraft, looking at the size of our country. Any accident has a temporary setback, but largely, Indian aviation is well managed. SOPs and safety norms are well in place in India's aviation growth,' he said. Thursday's accident is being probed by the Aircraft Accident Investigation Bureau (AAIB), which comes under the civil aviation ministry. Patel refused to speculate on the reasons behind the crash and said everyone should wait for the AAIB's report. 'The black box has been recovered. While the data will be retrieved within a few months, it will take a little longer for the government to come out with a report detailing the exact reasons behind the crash,' he said. Patel also played down speculation that a bird hit may have led to the crash. 'Even if one of the two engines had failed, technically, the plane is equipped to take off and travel the full distance. Watching the video, it seems that there was no problem at the time of the takeoff. Otherwise, the pilot would have avoided it,' he said. The NCP leader also called on passengers not to be scared of air travel following the crash. 'India's overall safety standards are well-defined and the Directorate General of Civil Aviation keeps updating these norms in line with international norms,' he said. Meanwhile, Tata Group chairman N Chandrasekaran on Friday described the crash as 'one of the darkest days in Tata Group's history.' In a letter addressed to employees, Chandrasekaran conveyed his grief over the loss of lives, calling the tragedy 'incomprehensible.' 'Words are no consolation right now, but my thoughts are with the families and loved ones of the people who died and were injured in the crash. We are here for them. I want to say that, like you, we want to understand what happened. We don't know right now, but we will,' Chandrasekaran wrote in the letter. With inputs from PTI
Hindustan Times
2 hours ago
- Hindustan Times
Insurance premiums to rise in bad year for aviation, say experts
New Delhi It's a payout no one -- neither airliners nor passengers -- hopes would ever come to pass, but aviation insurance is set to get costlier amid rising risks and air fatalities, experts say. Mishaps and war have already ratcheted up the stakes, capping a dream run of low, stable premiums, which are poised to jump this year. The lumbering Russia-Ukraine conflict, a spate of air accidents and the apparent start of an Israel-Iran clash have added significantly to those risks, an industry executive said, requesting anonymity. Earlier this month, a UK judge ruled that insurance companies must compensate aircraft lessors and airliners for planes seized by Russia as part of its counter-sanctions reprisal, adding a new dimension to aviation insurance. The year 2025 was already beginning to prove to be a tipping point with the Potomac River mid-air collision in the US this January. It shattered the calm of 2023 when no large plane was involved in a fatal accident, according to aviation groups. The encounter between American Airlines Flight 5342 and an army helicopter near Washington was the deadliest US disaster in over a decade. 'This changed sentiments dramatically in New York and London, two financial centres where the largest aviation reinsurance businesses are concentrated,' said Mathew Pannerselvam of Troth Broking Ltd. The crash of Air India AI 171 outside Ahmedabad's airport on Thursday has already made 2025 the deadliest in a decade globally with over 480 fatalities, according to figures from the Virginia-based Flight Safety Foundation. The London, Gatwick-bound Boeing 787 jetliner crashed moments after taking off, unable to power its initial climb and barely able to clear a neighbourhood just outside the runway. Insurance payments to follow from the Air India crash are likely to be the costliest in Indian aviation history because of the extent of damages, including to properties on the ground and non-passenger fatalities, the executive cited in the first instance said. The accident resulted in the complete destruction of the aircraft and the death of all but one passenger. The payouts could potentially reach nearly $100 million if the totality of liabilities is taken into account, said a second executive from Marsh India, an investment advisory firm, requesting anonymity. The main insurer of the Air India Dreamliner was TATA AIG while several other firms underwrote part of the liabilities, including National Insurance and Oriental Insurance, a third industry analyst said, asking not to be named. Most large insurers opt for reinsurance, an arrangement where the original insurance firms protect themselves against losses by transferring their own risks to a reinsurer at a cost. 'In aviation, this is the norm and very little risks remain with the original insurers,' one of the industry executives cited above said. In the case of the AI 171 flight too, just about 10% of the liability will have to be borne by Indian insurers, whose aviation businesses are covered under a global reinsurance programme, the third analyst cited above said. Aviation insurance is never a single product, analysts said. A commercial plane typically is covered by several types of risk packages. The most critical ones include cover for hull losses during flight and taxiing, as well as when an aircraft is stationary. Passenger liability covers allow airliners to compensate the next of kin in case of fatal accidents. Tata Sons, the conglomerate that owns Air India, on Thursday announced that it would pay ₹1 crore to the next of kin of each passenger on board the fatal flight. Airliners also need to take out a public liability policy for third-party compensation, just as in car insurance, to pay for damages caused to other aircraft, objects or people. Insurance premiums make up no more than 1.5-2% of airlines' costs, very little compared to spending on fuel or maintenance, and premiums can range from $45000 to $150,000, depending on aircraft type, age and routes travelled, among other parameters, according to data from AerCap Holdings NV. The insured value of a commercial jetliner can range from $112 million to $230 million. The insurance industry is 'good at adapting to changes' and risks from emerging wars were earlier considered 'second-order risks', Bruce Carnegie-Brown, the chairman of Llyod's of London, one of the largest aviation insurers, told Bloomberg last month.
