Boeing’s stock falls as Air India crash raises more safety questions

Boeing’s (NYSE:BA) stock fell 8% in premarket trading, while suppliers GE Aerospace (NYSE:GE) and Spirit AeroSystems Holdings (NYSE:SPR) slipped 4.4% and 4%, respectively, after one of Boeing’s 787 Dreamliners crashed in India on Thursday, killing an unknown number of people. The incident raises fresh questions about the safety of Boeing’s (NYSE:BA) planes.

The Air India flight, a 787-8 model on its way to London’s Gatwick Airport, went down shortly after departing from Ahmedabad, a major city in western India. The aircraft, which had 242 people on board, crashed into a residential neighborhood not far from the airport, triggering a massive emergency response, according to multiple press reports.

Air India said the flight took off at 1:38 p.m. local time and was carrying 230 passengers. Among them were 169 Indian nationals, 53 from the U.K., one Canadian and seven from Portugal.

“The injured are being taken to the nearest hospitals,” the airline said in a statement.

The Dreamliner, introduced in 2011, had maintained a strong safety record until this incident, with no previous fatal accidents.

Boeing (NYSE:BA) acknowledged the reports, stating, “We are in contact with Air India regarding Flight 171 and stand ready to support them. Our thoughts are with the passengers, crew, first responders and all affected.”

GE Aerospace (NYSE:GE) is one of the manufacturers of jet engines for the 787, while Spirit AeroSystems (NYSE:SPR) produces main sections of the plane.

Footage from Indian news outlets showed thick black smoke billowing above the skyline and emergency workers transporting victims on stretchers. Flight data from Flightradar24 indicated the jet had reached just 625 feet in altitude and was descending at 475 feet per minute when its location signal was lost. The aircraft was 11 years old.

The crash site lies in Gujarat, a state known for its economic growth and home to many of India’s top business families. It is also the home state of Indian Prime Minister Narendra Modi.

“It is heartbreaking beyond words. In this sad hour, my thoughts are with everyone affected by it,” Modi posted on X, formerly Twitter. He added that federal assistance was being provided to local officials in Ahmedabad.

Local police confirmed the plane crashed in a populated area after departing from the city’s main airport, according to several press reports.

Air India, once state-owned, has been operated by Tata Sons since 2022, after the Indian government divested the struggling airline. Natarajan Chandrasekaran, chairman of Air India, confirmed the accident in a message on X, writing that Flight 171 was “involved in a tragic accident today.”

High-profile safety incidents

This disaster adds to an already difficult year for the aviation sector, which has seen multiple high-profile incidents. In January, a passenger jet and a military helicopter collided near Washington, D.C.

Earlier this month, Boeing (BA) agreed to pay $1.1 billion as part of a settlement to avoid criminal charges related to two earlier 737 Max crashes that occurred in 2018 and 2019, killing over 300 people. Under the terms of the deal, Boeing (BA) will allocate $455 million toward improving its safety, compliance and quality systems, and an additional $444.5 million will go to victims’ families under a separate settlement agreement.

U.K. Prime Minister Keir Starmer expressed sympathy for those affected, saying, “The scenes emerging of a London-bound plane carrying many British nationals crashing in the Indian city of Ahmedabad are devastating.”