Boeing’s Safety Abyss: Can It Climb Out After Air India Crash?

The crash of the Air India Boeing 787-8 Dreamliner in Ahmedabad, which claimed the lives of most of the 242 passengers, not only marked a tragedy but also severely damaged Boeing's fragile recovery.

With shares plummeting 4.8% to $203.55 and a first-ever fatal 787 incident, the planemaker’s safety woes are back in the spotlight, threatening Kelly Ortberg’s goal to restore trust.

With investigations looming, the world's worst aviation disaster in a decade poses a pressing question: can Boeing overcome its past?

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A Tattered Safety Record Takes Another Hit

Boeing’s 787 Dreamliner, once a beacon of modern aviation, now bears the scar of its first fatal crash. Unlike the 737 MAX, grounded after two deadly crashes in 2018 and 2019, the 787 had dodged fatalities despite 171 technical incidents since 2011, including battery issues in 2013.

This crash, minutes after takeoff from Ahmedabad, shatters that record and reignites fears of systemic flaws. With the FAA and India’s DGCA gearing up for probes, whispers of manufacturing defects or quality control lapses are growing louder.

Ortberg’s Turnaround Dreams Grounded?

CEO Kelly Ortberg called 2025 Boeing’s “turnaround year” in April, touting stabilized 787 production at five planes monthly, with plans to hit seven. However, this crash, occurring just weeks after the FAA and India's DGCA avoided criminal liability for previous 737 MAX crashes, shatters those ambitions.

The Paris Air Show, a critical stage for Boeing’s rebound, now looms as a gauntlet where Ortberg must face skeptical airlines and regulators. Investors, already spooked, sent shares down as much as 8% pre-market, signaling a crisis of confidence.

Did you know?
In 1977, two Boeing 747s collided on a runway in Tenerife, resulting in 583 deaths, the deadliest aviation accident in history, underscoring the stakes of aircraft safety.

Ripple Effects: The crash's shockwaves profoundly affected Boeing's ecosystem.

It profoundly affected Boeing's ecosystem. Shares of Spirit AeroSystems and GE Aerospace, key suppliers, dipped 2% each, while Boeing’s bonds maturing in 2029 widened by 10 basis points.

The market’s “knee-jerk reaction,” as IG Group’s Chris Beauchamp calls it, reflects fears of prolonged scrutiny and potential production caps.

With Air India’s fleet upgrades and Boeing’s delivery schedules now in question, the fallout could reshape aviation’s supply chain.