The tragic accident reignites concern over airline safety
Aircraft manufacturer Boeing shares has dropped after the tragic crash of London-bound Air India 787-8 Dreamliner jet claimed the lives of more than 240 people onboard, a report by BNN Bloomberg found.
The plane crashed in Ahmedabad, India minutes after taking off. While the cause of the crash remains unclear, the accident caused the plane manufacture’s shares to drop 4.9% on Thursday. It also left more problems for Boeing CEO Kelly Ortberg who had been trying to regain the trust of the public after challenges in safety and production.
According to the article, Boeing expressed its awareness regarding the initial reports from the tragedy and was gathering more information to find the cause behind the accident.
Prior to the crash, Boeing received praises from airline executives with its rebound in deliveries. A recent summit in New Delhi also had executives express optimism over the aircraft manufacturer’s crises in safety and regulation.
The crash serves as the first fatal crash of a widebody 767 plane, which was one of the most modern passenger aircrafts in service, the article found. The only incident involving the aircraft was a grounding due to battery issues in 2013 with no reported injuries.
Notably, Boeing’s narrowbody 737 MAX jets have been grounded for years after two fatal crashes, leading to years of delays in production and public scrutiny. An incident last year had a door plug blow off a 737 MAX 9 by Boeing mid-flight, rekindling concerns over its quality control.
The accident also led to the 2% drop of shares of the aircraft manufacturer’s key supplier Spirit AeroSystems and engine maker GE Aerospace. While the latter assured that its emergency response team were supporting the investigation, it did not specify if the aircraft was equipped with its engines, the article mentioned.
Following the crash, Boeing’s outstanding debt modestly sold off. A bond broker revealed that its bonds maturing in May 2029 were trading 10 basis points wider than what was recorded on Wednesday, at 88 basis points over Treasuries.
