Air India Crash: What's at Stake for Boeing

Skift

21 hours ago

The Air India crash presents a new set of problems for Boeing, which was starting to emerge from a years-long safety crisis.
Skift's coverage of the Air India crash is offered free to all readers.
Boeing's effort to rebuild its reputation and resume key aircraft deliveries faces new pressure after the crash of an Air India 787 Dreamliner on Thursday — a setback that comes as airlines await new jets to fuel their growth plans.
Authorities said there are likely no survivors from the crash. The cause is unclear and is under investigation.
The 787 had an untarnished safety record before Thursday with zero fatalities, according to the Aviation Safety Network.
The plane involved in the crash wasn't a new aircraft — it first entered service in 2014, according to FlightRadar24.
Boeing's String of Incidents
The crash presents a new blow for Boeing, which was already facing a years-long safety crisis following the two fatal 737 Max crashes and the Alaska Airlines blowout incident. Boeing has lost billions of dollars and seen multiple executive shuffles.
Boeing recently reached a $1.1 billion deal with the Justice Department over the fatal 737 Max crashes of 2018 and 2019, which would allow it to avoid criminal charges.
As part of the deal, Boeing has to admit to obstructing federal oversight, offer compensation to the victims of the 737 Max crashes, and work to improve its safety, compliance, and quality programs.
The plane maker was also starting to recover from the Alaska blowout in January 2024, when a doorplug on an Alaska 737 Max suddenly fell off mid-flight. Following the incident, the FAA placed production caps on the 737 Max and increased its oversight on the beleaguered plane maker.
Ahead of the Paris Air Show next week, Boeing reported receiving its highest number of plane orders since December 2023, with gross orders reaching 303 aircraft in May. Boeing delivered 45 aircraft in May, which was the same in April, but nearly double from the same time last year.
787 Production Problems
The 787 has faced some production problems in the past. The FAA grounded the 787 Dreamliner in 2013 due to battery fires. Boeing also had to halt the deliveries of 787s for nearly two years because of quality-control issues.
This past year, Boeing had to slow down production of the 787 as a result of supply chain shortages.
The 787 was also the center of a congressional hearing last year, when multiple whistleblowers testified about alleged safety issues to the Senate subcommittee on investigations.
Boeing's Recovery Path
Boeing CEO Kelly Ortberg, who took the helm in August 2024, said during an earnings call in January that the company was 'seeing encouraging signs' on its path to recovery.
The company implemented random quality control audits, strengthened training for mechanics and quality inspectors, and started conducting mandatory safety and product quality training for all employees.
Ortberg has also promised change to Boeing's culture, profitability, and business.
'The trust in our company has eroded,' Ortberg said during an earnings call in October 2024. 'We're saddled with too much debt. We've had serious lapses in our performance across the company which have disappointed many of our customers.'
Boeing said in a statement that it was in contact with Air India.
'We are in contact with Air India regarding Flight 171 and stand ready to support them,' Boeing said in a statement. 'Our thoughts are with the passengers, crew, first responders and all affected.'
The Federal Aviation Administration said Thursday that it was in contact with the National Transportation Safety Board regarding the crash.
'We stand ready to launch a team immediately in coordination with the NTSB,' the FAA said in a statement.
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Read the full methodology behind the Skift Travel 200.