Boeing shares sink nearly 5% after deadly Air India 787 Dreamliner crash in Ahmedabad
Boeing Co. shares sank sharply on Thursday following the fatal crash of an Air India Boeing 787-8 Dreamliner in Ahmedabad. The stock closed at $203.60, down nearly 5% from the previous day's close of $214.04.
A devastating tragedy struck on Thursday (June 12), as Air India flight AI171, a Boeing 787-8 Dreamliner, crashed shortly after takeoff from Ahmedabad's Sardar Vallabhbhai Patel International Airport, killing 241 of the 242 people on board. The London-bound flight was carrying 230 passengers and 12 crew members.
The crash occurred in Meghaninagar area near the airport. Witnesses described seeing a massive fireball and plumes of black smoke rising into the sky.
The aircraft reportedly issued a Mayday call moments after departure from runway 23 before vanishing from radar. Among the victims were 169 Indian nationals, 53 British nationals, seven Portuguese nationals, and one Canadian national.
The Dreamliner, once touted as a technological leap forward in aviation, has faced multiple production quality issues and delivery delays, prompting heightened scrutiny from regulators and airlines.
First fatal crash for 787 raises red flags
While Boeing has previously dealt with safety scandals related to its 737 MAX model, Thursday's accident marks a troubling turn for its widebody 787 program. The crash is expected to lead to a fresh wave of investigations and could result in regulatory or legal challenges.
Boeing responds with condolences, vows support
Boeing President and CEO Kelly Ortberg expressed his condolences and offered full support to Indian investigators. The company confirmed that it is working with India's Aircraft Accident Investigation Bureau (AAIB) and will defer public statements to the agency in accordance with international protocols.
"Our deepest condolences go out to the loved ones of the passengers and crew on board Air India Flight 171, as well as everyone affected in Ahmedabad," Ortberg said in a statement.
"I have spoken with Air India Chairman N Chandrasekaran to offer our full support,' he said.
He also said that a Boeing team stands ready to support the investigation led by India's Aircraft Accident Investigation Bureau.
'Boeing will defer to India's AAIB to provide information about Air India flight 171, in adherence with the United Nations International Civil Aviation Organization protocol,' the US aircraft maker said in the statement.
Also Read | Will the Air India crash ground the Dreamliner series and disrupt travel?
US Government reacts: NTSB to join probe
The National Transportation Safety Board (NTSB) announced it would send a team of investigators to India to assist in the crash probe. The US Federal Aviation Administration (FAA) also confirmed its involvement alongside Boeing and engine manufacturer GE Aerospace.
Transportation Secretary Sean Duffy stated: 'The U.S. government will not hesitate to implement any safety recommendations that may arise. We will follow the facts and put safety first.'
He also confirmed the FAA and NTSB would send additional resources to India to collect critical data and ensure public safety.
A blow to Air India's expansion plans
The crash comes at a crucial time for Air India, which has aggressively expanded its fleet since its acquisition by the Tata Group in 2022. In 2023, the airline placed an order for 470 aircraft, including 290 from Boeing. That deal featured 20 additional 787 Dreamliner jets.
This is the first fatal crash involving a Boeing Dreamliner, a detail likely to put added pressure on Boeing's already embattled commercial division.
Also Read | Air India officially confirms 241 passengers killed in Ahmedabad crash
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