Boeing Faces Fresh Scrutiny After Fatal Air India Crash

Wall Street reacts as 787 Dreamliner tragedy weighs on stock ahead of Paris Airshow

Tragedy in India Sparks Market Jitters

Boeing (NYSE: BA) is once again under scrutiny following the deadly crash of an Air India 787-8 Dreamliner in Ahmedabad, western India. The aircraft, en route to London Gatwick, crashed shortly after take-off on Thursday, killing 241 passengers and crew. One person survived.

This is the first fatal crash involving the Boeing 787 since it entered service in 2011.

A Strong Safety Record—Now in Question

Despite the incident, analysts highlighted the 787’s impressive long-term safety record.

“This is the first fatal accident involving a 787,” said Sheila Kahyaoglu of Jefferies.
“The aircraft has a very strong safety record,” echoed RBC Capital’s Ken Herbert.

The 787 has been in service since 2014 and had previously faced battery-related issues early in its lifecycle, but none with fatal outcomes—until now.

Crash Details Point to Engine Trouble

Initial flight data suggests the aircraft struggled to gain altitude, reaching just 625 feet before a rapid descent.

“The flight path indicates a loss of power on take-off, most likely from the engines,” said Bernstein analyst Douglas Harned.

Experts suspect engine failure—possibly caused by a bird strike—may have played a key role. The aircraft was powered by GEnx engines from GE Aerospace, which has dispatched a team to assist the investigation.

Maintenance issues with either the airframe or engines also remain under review.

Boeing Shares Drop Amid Renewed Concerns

Following the crash, Boeing shares fell 4.8%, as investors responded cautiously.

“Given Boeing’s past with the MAX crashes, it’s understandable investors are hesitant,” said Herbert.

Historical data shows that Boeing’s stock typically declines 5% on the day of an incident and 6% one week later. However, Morgan Stanley’s Kristine Liwag believes the reaction may be exaggerated:

“Considering the 787’s strong safety history, we view the stock pullback as overdone, especially with 737 MAX production improving.”

Paris Airshow Now Clouded by Tragedy

The timing of the crash couldn’t be worse for Boeing, with the Paris Airshow set to begin next week. The event is usually a key platform for aircraft orders and investor optimism.

“While the full cause may take months to determine, the crash is a sentiment overhang ahead of the airshow,” said Herbert.

The uncertainty may limit Boeing’s upside potential during the event, even if no technical fault is confirmed.

Other Firms Under the Microscope

The incident also casts a shadow on Boeing’s key suppliers, including:

• GE Aerospace (NYSE: GE) – Engines
• RTX Corp (NYSE: RTX) – Avionics and systems
• Spirit AeroSystems (NYSE: SPR) – Fuselage
• Howmet Aerospace (NYSE: HWM) – Engine components
• Hexcel Corporation (NYSE: HXL) – Carbon fibre materials
• Ducommun Inc. (NYSE: DCO) – Structural components

Each of these firms could face market volatility depending on the crash investigation’s outcome.

Summary: Tough Times Ahead for Boeing?

• Air India crash claims 241 lives, first fatal 787 accident
• Flight data suggests possible engine failure after take-off
• Boeing stock falls nearly 5%, may face extended pressure
• Paris Airshow optimism now clouded by tragedy
• Analysts urge caution but note long-term 787 safety record

As the investigation unfolds, investors will be watching closely—not only for fault attribution but for impacts on Boeing’s commercial momentum and broader aviation sector sentiment.

Sources: (Investing.com, Reuters.com)