The aviation industry is reeling after a deadly Air India crash involving a Boeing 787 Dreamliner near Ahmedabad, India, on June 12, 2025. The crash of Flight AI171, en route to London's Gatwick Airport, has sent shockwaves through the market, causing Boeing's stock to plummet and raising serious questions about the safety and reliability of its aircraft.
The Air India flight AI 171, carrying 242 people, crashed shortly after takeoff from Ahmedabad airport. The aircraft, a Boeing 787-8 Dreamliner, went down in a densely populated residential area, resulting in at least 30 fatalities. According to reports, the plane issued a mayday call to air traffic control before all communications were lost. The cause of the crash is currently under investigation by the DGCA and FAA.
The crash has had an immediate and significant impact on Boeing's stock price. Shares of the aircraft manufacturer plunged by as much as 8% in pre-market trading, with the price dropping from around $186 to $173 within hours. This decline reflects investor fears regarding the safety of the 787 Dreamliner, especially considering Boeing's recent history of safety setbacks and regulatory scrutiny. The fall also impacted suppliers and partners, with GE Aerospace and Rolls-Royce also seeing their stocks decline.
The 787 Dreamliner, while considered one of Boeing's most advanced models, has faced technical issues in the past, including battery fires and concerns about structural and manufacturing flaws. This crash marks the first fatal incident involving the 787 Dreamliner, amplifying concerns about the aircraft's safety and potentially leading to further regulatory actions or flight groundings.
Industry analysts suggest that this crash could pose a significant challenge for Boeing, especially as the company was working to regain the trust of its airline customers after previous safety concerns. The incident has drawn comparisons to the 737 MAX crashes, which led to prolonged groundings and significant financial repercussions for Boeing. Some analysts believe that the crash will force Boeing back into an "introspective mood," as it grapples with the implications of this latest incident.
Boeing has issued a statement saying it is aware of the initial reports and is working to gather more information. The company has also expressed its concern for the passengers, crew, first responders, and all those affected by the crash. As investigations continue, the aviation industry will be closely monitoring the situation to determine the cause of the crash and its potential impact on the future of Boeing and the 787 Dreamliner program.
