On Thursday, Boeing’s stock dropped by 5% following a tragic incident in which an Air India 787-8 Dreamliner crashed just minutes after takeoff. This event poses a significant challenge for the new CEO, who is striving to restore confidence in the company amidst ongoing safety and production issues.
All 242 passengers aboard the aircraft, which was headed for London, lost their lives in what marks the worst aviation disaster in a decade. The crash occurred in Ahmedabad, a city in western India.
The cause of the crash remains unknown at this time. Boeing acknowledged awareness of the situation and is currently working to gather more details.
The accident has negatively impacted the Dreamliner’s safety reputation. However, CEO Kelly Orthberg recently attended the Paris Air Show in May, looking to enhance production and secure new orders.
The 787 is among the latest generation of passenger planes, yet this is the first incident resulting in fatalities. The aircraft had also faced grounding in 2013 due to battery-related issues, although that did not involve any injuries.
Despite this incident, Boeing has been under scrutiny for the narrow-body 737 Max, which has experienced significant delays and two prior fatal accidents.
Last year brought more challenges for the manufacturer when door plugs malfunctioned mid-flight on the 737 Max 9, raising alarms about safety and quality control, leading to yet another FAA grounding.
As a result of the anxiety surrounding the accident, shares of key suppliers like Spirit Aerosystems and GE Aerospace dropped about 3% each.
GE Aerospace announced on X that they are mobilizing their emergency response team and participating in the investigation, although it was unclear if the Air India aircraft was powered by their engines.
Boeing shares were trading at $196.75 after experiencing an 8% drop prior to the market opening.
Chris Beaushan, an analyst at IG Group, noted that the market’s reaction seems like a reflexive response, reflecting the ongoing concerns regarding Boeing’s history of issues.
