Boeing shares slide 5% after Air India Dreamliner crash kills over 200
The crash marks the first fatal incident involving the 787 since the model entered commercial service in 2011. While the aircraft was temporarily grounded in 2013 due to battery-related fires, no fatalities had previously been reported on the widebody jet, which is considered one of the most modern long-haul aircraft in use.The timing is particularly sensitive for Boeing, which had recently notched new orders and met production targets in May, with hopes of showcasing its progress at the upcoming Paris Air Show. The fatal crash has now cast a shadow over those gains.Chris Beauchamp, an analyst at IG Group, told news agency Reuters that this is a knee-jerk reaction to the incident. 'There's renewed fear about the problems that have plagued Boeing aircraft and the company itself in recent years,' he added.MORE TROUBLE FOR BOEINGadvertisementBoeing continues to face regulatory scrutiny and reputational damage from its 737 MAX program, which suffered two fatal crashes in 2018 and 2019.More recently, a door plug incident on a 737 MAX 9 mid-flight triggered a temporary FAA grounding and raised fresh concerns over quality control.Shares of Spirit AeroSystems, a key supplier to Boeing, and GE Aerospace, which makes engines for the Dreamliner, also fell around 3% each. GE Aerospace said on social media that it had activated its emergency response team and would assist with the investigation. It did not confirm whether its engines were on the Air India aircraft.Boeing's stock was trading at $196.75 after having fallen as much as 8% in pre-market trading. The company now faces mounting pressure to respond to the crash and reassure both regulators and passengers globally.
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