Boeing stock plummets after Air India crash, dealing major setback as new leadership tries to rebuild trust
Boeing's shares fell 5% on Thursday after an Air India 787-8 Dreamliner jet crashed minutes after taking off, posing a major setback for the planemaker as its new CEO looks to rebuild trust following a series of safety and production challenges.
All 242 people on board the London-bound plane were killed in the crash in the western city of Ahmedabad, authorities said, in the world's worst aviation disaster in a decade.
It was not immediately clear what caused the crash. Boeing said in a statement it was aware of initial reports and was working to gather more information.
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3 All 242 people on board the London-bound plane were killed in the crash in the western city of Ahmedabad, authorities said, in the world's worst aviation disaster in a decade.
SIDDHARAJ SOLANKI/EPA-EFE/Shutterstock
The fatal crash tarnishes the Dreamliner jet's safety record and muddies CEO Kelly Orthberg efforts to ramp up production as the airplane maker scored a flurry of new orders and hit production targets in May, heading into the Paris airshow.
The widebody 787 planes, one of the most modern passenger aircraft in service, have never had a fatal crash until the Air India incident. They were grounded in 2013 due to battery issues, but no one was reported injured.
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Boeing, however, has faced years of scrutiny and delays over its narrowbody 737 MAX jets, which were grounded for years following two fatal crashes.
Last year, the US planemaker came under renewed scrutiny after a door plug blew off a 737 MAX 9 mid-flight, prompting a temporary FAA grounding and fresh concerns over quality control.
3 The fatal crash tarnishes the Dreamliner jet's safety record and muddies CEO Kelly Orthberg efforts to ramp up production as the airplane maker scored a flurry of new orders and hit production targets in May.
Mattie Neretin/CNP / SplashNews.com
Shares of Spirit AeroSystems, a key supplier, and GE Aerospace, which makes engines for the jet, also fell about 3% each.
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GE Aerospace said in a post on X that it had activated its emergency response team and would support the investigation, but did not specify if the Air India aircraft was equipped with its engines.
The engine maker did not immediately respond to a Reuters request for comment.
3 Last year, the planemaker came under renewed scrutiny after a door plug blew off a 737 MAX 9 mid-flight, prompting a temporary FAA grounding and fresh concerns over quality control.
AFP via Getty Images
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Boeing shares were trading at $196.75 after falling as much as 8 percent before the opening bell.
'It's a knee jerk reaction (to the incident) and there's revised fears of the problems that plagued Boeing aircraft and Boeing itself in recent years,' said Chris Beauchamp, analyst at IG Group.
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Inside Thomas Frank's Tottenham Hotspur appointment
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Frank and Lange have known each other for nearly two decades — they worked together at Danish top-flight side Lyngby in 2006 — and will be reunited in north London. Lange and Purslow were impressed by Steven Gerrard's presentation and interview so decided to appoint the former Liverpool captain as Smith's replacement. In January 2022, Frank and his then-assistant Brian Riemer signed new long-term contracts with an improved salary at Brentford. At the beginning of the 2022-23 campaign, Leicester City were interested in Frank but they decided to stick with Brendan Rodgers. When Graham Potter took over at Chelsea that September, Frank publicly praised the decision because it would have 'been easy' for them to appoint Mauricio Pochettino or Zinedine Zidane. There are lots of similarities between Frank and Potter. Neither of them had playing careers at the highest level and they coached in Europe before punching above their weight with Brentford and Brighton & Hove Albion respectively. 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New York Times
an hour ago
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Air India's New Owners Were Trying to Revamp Carrier Before Crash
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