Boeing in crisis: Shares tumble over 8% after Air India plane crash in Ahmedabad

After the London-bound Air India flight AI-171 crashed shortly after take-off from Ahmedabad airport on the afternoon of June 12, Boeing Co’s shares plumetted over 8 per cent in premarket US trading.

The aircraft, carrying 230 passengers — including 169 Indians, 53 British nationals, seven Portuguese citizens and a Canadian — along with 12 crew members, was headed to London’s Gatwick Airport. 

Of the 242 people on board, only one survived as the Boeing 787-8 Dreamliner slammed into a medical college hostel.

The aircraft involved, registered as VT-ANB, is a Boeing 787-8 Dreamliner—considered one of the most modern and fuel-efficient passenger jets currently in service. 

Boeing’s shares were down about 8% to $196.52 in premarket trading following news of the crash. The crash plunged the American planemaker back into crisis mode just as it was preparing to showcase a long-awaited recovery at the Paris Air Show.

In a statement, Boeing said it was “aware of initial reports and is working to gather more information.” The crash comes at a time when the U.S. planemaker is attempting to rebuild trust in its aircraft after a series of safety controversies and is trying to ramp up production under new CEO Kelly Orthberg.

“This is a knee-jerk reaction to the incident, and it revives fears of the problems that plagued Boeing aircraft and the company itself in recent years,” said Chris Beauchamp, analyst at IG Group.