The tragic Air India plane crash near the Indian city of Ahmedabad on Thursday has thrown Boeing back into the spotlight, with more than 100 people feared dead and investors reacting sharply.
Boeing share price was down by 6% in pre-market trading on Thursday, while GE Aerospace, which likely powered the aircraft saw it share price down by more than 2.6%.
Shares of fuselage maker Spirit AeroSystems, currently in the process of being acquired by Boeing, fell 2.7%.
The aircraft, a Boeing 787-8 Dreamliner, was en route from Ahmedabad to London Gatwick when it crashed shortly after take-off, carrying 242 passengers and crew.
Reuters said that according to local police sources, 100 bodies had been brought to a hospital in Ahmedabad, with dozens more reportedly injured.
The aircraft struck a residential area near the BJ Medical College, including a hostel for intern doctors, causing additional casualties on the ground.
The exact number of fatalities remains unverified by authorities at the time of writing.
According to data from Flightradar24, the aircraft bore the registration VT-ANB and had been in service for nearly 12 years.
GE Aerospace, in a statement posted on X (formerly Twitter), said it was assembling an emergency response team to assist Indian authorities with the investigation.
Boeing, too, issued a brief statement: “We are aware of initial reports and are working to gather more information.” Air India said it was fully cooperating with authorities.
First fatal crash for Boeing 787 Dreamliner
This is the first fatal crash involving the Boeing 787 Dreamliner, a twin-aisle widebody jet that entered service in 2011.
It is one one of the company’s best-selling widebody jets, and has been delivered to nearly 1,200 customers since its debut.
Despite its commercial success, the Dreamliner has faced several production hurdles.
Early on, it grappled with supply-chain disruptions and a series of battery fires that led global aviation regulators to temporarily ground the fleet in 2013.
More recently, Boeing was forced to halt deliveries of the aircraft for nearly two years due to quality-control concerns.
However, broadly, the aircraft has had a solid safety record over the years.
Thursday’s crash not only shatters that record but could also hinder Boeing’s efforts to rebuild trust after years of setbacks tied to its troubled 737 MAX program.
Boeing Chief Executive Kelly Ortberg, who took over in August, has told employees that the company is on a fragile path to recovery and can’t afford another mistake.
“This is a knee-jerk reaction, but it revives fears about the long-running issues Boeing has faced with both production and aircraft safety,” said Chris Beauchamp, an analyst at IG Group, in a Reuters report.
Fallout ahead of Paris Air Show
The timing of the crash is particularly damaging for Boeing.
The company had been preparing for the Paris Air Show, an event typically marked by large commercial jet orders.
CEO Kelly Ortberg was scheduled to attend, but there has been no official update on whether his plans will change.
Industry experts worry the incident may cloud investor and customer sentiment at the show, especially as Boeing continues to recover from a series of past safety and manufacturing issues.
Although the cause of the crash remains unknown, early assessments suggest a manufacturing flaw is unlikely given the aircraft’s age and the Dreamliner’s reputation.
Nonetheless, investigators will now closely examine both the aircraft and its maintenance history, alongside other potential contributing factors.
A painful reminder of past Boeing tragedies
The crash evokes memories of Boeing’s most painful period: the grounding of the 737 MAX in 2019 following two catastrophic crashes — Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019 — that claimed 346 lives collectively.
Those accidents were ultimately traced to faulty flight control software, prompting years of regulatory scrutiny and damaged public trust.
In early 2024, a 737 MAX flight operated by Alaska Airlines suffered a mid-air panel blowout, further delaying Boeing’s path to full reputational recovery, even though no lives were lost.
The Air India crash could be the deadliest airline disaster since Malaysia Airlines Flight MH17, which was shot down over Ukraine in 2014, killing 298.
It is also the worst for Air India since the bombing of Flight 182 in 1985, which killed all 329 onboard.
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