Aviation
Air India Dreamliner Crash Sparks Fresh Crisis for Boeing, Stock Plunges 4.8%
Air India, meanwhile, faces its own crisis. The Tata-owned carrier had been attempting a complete rebrand and operational overhaul since its $2.2 billion acquisition in 2022. Thursday’s crash marks the deadliest incident in Air India’s recent history and poses a significant challenge to its modernization strategy. The airline recently ordered 220 Boeing aircraft, including 20 Dreamliners, signaling its long-term bet on the manufacturer.
In a day of stark contrasts on Wall Street, stocks broadly ticked higher on Thursday despite a dramatic 4.8% dip in Boeing shares following the crash of an Air India Boeing 787 Dreamliner in Ahmedabad, India. The aircraft, bound for London, crashed into a residential area just five minutes after takeoff, killing or injuring scores on board. The cause of the crash is still under investigation.
The stark dip in Boeing’s stock came as images of the crash site surfaced online, triggering investor concern over the potential grounding of the Dreamliner fleet or intensified regulatory scrutiny. The plane was one of Boeing’s flagship models, and this latest incident adds to the company’s ongoing reputation struggles.
Boeing is once again under fire after a deadly crash involving a 787 Dreamliner operated by Air India claimed 241 lives shortly after takeoff from Ahmedabad on Thursday. The London-bound aircraft plunged into a densely populated area, also damaging a nearby medical college hostel, marking the first fatal crash involving a Dreamliner since its launch in 2011.
The tragedy casts a long shadow over Boeing’s already embattled safety record, rekindling public distrust and regulatory pressure just as the company tries to recover from past crises. While the exact cause of the crash remains unknown, the incident has intensified criticism of Boeing’s manufacturing practices and oversight standards, which have faced scrutiny for nearly a decade.
The crash comes amid other ongoing legal and reputational challenges for the aerospace giant. Earlier this month, Boeing reached a $1.1 billion settlement with the U.S. Department of Justice, avoiding prosecution for earlier crashes involving the 737 MAX. Under the agreement, Boeing pledged to improve internal safety protocols and compensate victims’ families.
Although the Boeing 787 Dreamliner has maintained a clean record of fatal crashes to date, its production history has been turbulent. Whistleblowers, including the late John Barnett and Sam Salehpour, have accused the company of compromising safety to meet production targets. Barnett, a former Boeing quality manager, alleged a 25% failure rate in emergency oxygen systems aboard the Dreamliner. He was found dead under suspicious circumstances in 2024.
Boeing’s new CEO, Kelly Ortberg, who returned from retirement to lead the company after Dave Calhoun’s departure, had promised to restore Boeing’s credibility. However, this crash, the second fatal Boeing accident in six months, has seriously undermined those efforts.
Boeing’s New CEO, Kelly Ortberg
Air India, meanwhile, faces its own crisis. The Tata Sons-owned carrier had been attempting a complete rebrand and operational overhaul since its $2.2 billion acquisition in 2022. Thursday’s crash marks the deadliest incident in Air India’s recent history and poses a significant challenge to the TATA Sons modernization strategy. The airline recently ordered 220 Boeing aircraft, including 20 Dreamliners, signaling its long-term bet on the manufacturer.
“This is a difficult day for all of us at Air India,” CEO Craig Wilson said in a video statement, expressing condolences and pledging full cooperation with authorities. Tata Sons Chairperson N. Chandrasekaran reaffirmed the airline’s commitment to supporting families and aiding emergency efforts.
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On Wall Street, Boeing shares tumbled nearly 5%, reflecting investor anxiety. Legal analysts expect lawsuits and deeper investigations to follow once more details emerge.
Despite the shock, experts stress that commercial air travel remains exceptionally safe. A 2024 MIT study places the odds of dying in an airline accident at just one in 13.7 million. Still, Thursday’s crash has rekindled tough questions about Boeing’s safety culture—and whether the aviation giant can truly regain public confidence.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the publication
