Boeing's share price tanks over 4% after Air India flight crash in Ahmedabad
US aircraft maker Boeing's share price was down over 4.32 per cent on Thursday to $204.77 apiece at 7:17 pm IST, hours after an Air India operated 787 Dreamliner flying the Ahmedabad to London Gatwick Airport flight crashed within minutes of take off in Ahmedabad, Gujarat. Boeing's share price was down nearly 8 per cent in pre-market activity on Thursday.
The latest crash compounds the US-based jetmaker's woes as it battles scrutiny into its work practices on account of multiple plane crashes as well as whistleblower complaints in the recent past. To be sure, this is reportedly the first ever Dreamliner crash reported across the world.
The flight carrying 230 passengers and 12 crew members crashed minutes after take off at 1:30 pm.
Boeing CEO Dave Calhoun had stepped down in 2024, making way for Kelly Ortberg, amid calls from airlines and regulators to overhaul the aerospace manufacturing giant which was best with a host of issues related to quality and safety.
In January 2024, the door of an Alaska Airlines operated Boeing 737 Max jet flew out 9 minutes into a flight, prompting widespread scrutiny into the jetmaker.
Taking accountability for the incident, Calhoun told CNBC in an interview he had decided to step down from the helm, adding ' Let's not avoid the call for action. Let's not avoid the need to slow down a bit and let the supply chain catch up.'
Interestingly, Calhoun took the helm at Boeing after the ouster of his predecessor Dennis Muilenburg in 2020. Muilenburg struggled to handle the crisis that cropped up following two 737 Max crashes.
Following the Alaska Airlines flight incident, America's Federal Aviation Administration halted Boeing's planned expansion of 737 Max jet production. The FAA refused to entertain any requests for a reversal of this order pending the regulator's satisfaction 'that the quality control issues uncovered during this process are resolved.'
The Air India Boeing 787 Dreamliner crash in Ahmedabad is likely to increase the scrutiny on Boeing, according to Morgan Stanley analyst Kristine Liwag. While the best case scenario for Boeing's stock is that the crash may have occurred due to a pilot error, the worst-case scenario could be a system issue, the analyst said, giving a share price target of $200 apiece.
RBC Capital analyst Ken Herbert maintained an 'outperform' rating on Boeing's stock with a share price target of $230 apiece. While the implications of the Air India flight crash are yet to be known, they are likely to overshadow Boeing's prospects ahead of the Paris air show.
Under current CEO Ortberg, Boeing has embarked on a cost-cutting drive. However, he would not hesitate to add personnel at its defense and commercial aircraft unit, Ortberg said during Boeing's annual general meeting in April.
Boeing was engulfed in a controversy brought by a former employee turned whistleblower John Barnett, who was found dead in 2024. The former quality manager at Boeing's North Charleston plant, which built the 787 Dreamliner, retired in 2017 citing health grounds. He alleged later that the workers at the facility were under pressure to fit sub-standard parts to the jets on the production line, the BBC reported. This was done to prevent production delays, he said.
He flagged problems with the jet's oxygen systems indicating that one in four breathing masks may fail during an emergency.
Since then, several whistleblower's have come forward to flag safety concerns on Boeing jets.
In a June 2024 US Senate hearing, Senator's said Boeing under Calhoun faced a 'moment of reckoning' besides being accused of strip mining the company.
'You're cutting corners, you're eliminating safety procedures, you're sticking it to your employees,' Republican senator Josh Hawley said to Calhoun during the hearing.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
34 minutes ago
- Time of India
Tour operator told to refund elderly couple for cancelled tour in Covid times
Ahmedabad: A consumer commission here has ordered a tour operator to refund the full amount with interest, along with Rs 55,000 compensation, to an elderly couple whose tours to Japan and Europe could not take place due to the Covid-19 pandemic. Tired of too many ads? go ad free now The couple was reluctant to go to the UK, Ireland, and Scotland upon the operator's insistence three years later. This case involved Asha and Yogesh Doshi, residents of the Ambawadi area, who paid Rs 5.30 lakh in 2019 to Mumbai-based Neem Holidays Pvt Ltd for two tours — Japan and Europe in 2020. Due to the Covid pandemic, the tours were cancelled. When normalcy returned, they requested the same tour package, but the operator could not arrange it. Considering that people were still reeling under financial stress due to Covid, the couple did not demand their money back. In 2022, the tour operator offered them a 13-day package for Australia. They agreed and paid Rs 10,000 extra, but this did not take place. A year later, the operator offered the couple a tour to the United Kingdom. The couple refused this trip, yet their tickets were booked. They requested the company not to force them to accept this package tour and demanded their money back. As the operator did not respond, the couple sued it with the District Consumer Dispute Redressal Commission, Ahmedabad City to get the refund. The operator's lawyer appeared, but the reply was not filed. The commission said that since the money was lying with the operator, the complainants did not have any choice but to agree to the unreasonable request. However, compelling them for another tour against their wish was harassment. Tired of too many ads? go ad free now "The complainant's money has been wrongfully withheld by the opponent, and therefore the complainants are entitled to receive the full money of the package tour from the opponent," it said. The commission ordered the operator to return Rs 5.40 lakh with 8% interest, along with Rs 55,000 extra towards compensation for causing "physical harassment and mental agony" and towards the expenditure the couple incurred on litigation.
The Hindu
34 minutes ago
- The Hindu
Three-wheeler EV adoption gains traction in Tamil Nadu
Three-wheeler electric vehicle (EV) penetration in Tamil Nadu so far in the calendar year 2025 has already surpassed the numbers for 2024, data show. As per data available on Vahan portal, a total of 2,802 electric three-wheelers have been registered in 2025 till May. EV adoption or penetration (measured in terms of EV sales as a percentage of the total vehicle sales) stood at 16.07% in 2025, as compared to 13.92% for the entire 2024. 'In Tamil Nadu, there has been consistent rise in the penetration of EVs, with 'Passenger Autos' rising from almost 4% in 2023 to above 8% in 2025. The penetration in the cargo vehicle segment is above 27%,' Roy Kurian, business head – last-mile mobility, Montra Electric, said. Montra Electric is the electric mobility brand of the Murugappa Group. 'State-level incentives — road tax exemptions and registration benefits — have helped lower the entry barriers for drivers. At the same time, availability of more reliable products has opened up a wider market,' Mr. Kurian said. Tamil Nadu has also been at the forefront in the usage of EVs, such as e-carts being used in waste management activities. The fast pace at which the government is focused on developing Public Urban transport like Metro Rail will also support growth of the last-mile EV solutions, he added. Montra Electric has seen strong traction for its EV three-wheelers in Tamil Nadu, with demand emerging from not only Chennai but also being driven by cities such as Madurai, Kanniyakumari, Coimbatore, Tirunelveli, and Tiruchi. Most of the initial customers being those who can charge the vehicles at their homes. Smaller towns, where travel distance is less, are quickly picking up EVs, Mr. Kurian said. The cargo segment is being driven by the logistics and e-commerce players, who have realised the benefits of EVs over internal combustion engine (ICE) vehicles for better profitability. They can also set up the charging and service infrastructure to support the fleet relatively easily, he said. However, Mr. Kurian said there was a long way to go for both the industry and government to come together on specific areas, including: affirmative actions to discourage purchase of ICE three-wheelers and actively move to EVs and earmarking space for charging stations in the key market areas, Mr. Kurian said. Ragavendra Ravichandran, co-founder and chief operating officer, Plugzmart, a Chennai-based EV charger manufacturer, said the increase in adoption was mainly driven by economics — rising fuel prices and the much lower running cost of EVs. K.P. Karthikeyan, chief executive officer and director of Zeon Electric Private Limited, said even though three-wheeler adoption was rising, the numbers were still below the national average (which is at 45.27%). With the State government looking at improving charging infrastructure, the numbers will go up, he added. Sriram J, senior manager, charging infrastructure at said availability of more product options and drivers' comfort level had been driving the three-wheeler EV adoption. K.P. Karthikeyan, CEO and Director of Zeon Electric Private Limited said even though three- wheeler penetration is picking up, still the numbers are below national level (which is at 45.27%). With the State government looking at improving charging infrastructure, the numbers will go up, he said. Sriram J, senior manager, charging infrastructure, at Bolt. Earth said availability of more product options and drivers comfort level is driving the three-wheeler electric vehicle penetration.
Time of India
an hour ago
- Time of India
Court rejects pre-arrest bail plea of FCI official booked in bribery case
Mumbai: A special CBI court rejected the anticipatory bail application of Navin Kumar, assistant general manager of the Food Corporation of India (FCI), Mumbai Regional Office. Tired of too many ads? go ad free now He was booked along with a Hyderabad-based businessman for alleged corrupt practices in tender processes and payment clearance. The judge stated that considering the "nature and gravity of the offence" and the allegations against the accused, custodial interrogation was warranted to "unearth the conspiracy". The judge remarked that the allegations levelled against the applicant cannot be brushed aside at this stage. "There is no submission that the accused was falsely roped in or that the allegations are motivated or frivolous or that he has been framed with an oblique motive," said the judge. The judge further noted that the material on record reveals that the officers of the FCI demanded bribes from private individuals to secure favourable orders in the ongoing tender process. The investigating officer has placed on record transcripts of telephone calls intercepted by the CBI, which indicate that the accused was a party to the conversation. "The applicant was discussing the 'award' of the tender, as well as money to be paid to the 'general manager' for the award of the tender. Moreover, another General Manager was apprehended while accepting a cash amount of Rs 20 lakh from the accused, Uma Maheshwar. There is prima facie evidence to indicate that the applicant was involved in accepting illegal gratification for securing a favourable outcome of tenders," the judge said. According to the FIR, CBI received information indicating Kumar and another AGM, Srinivas Mylapalli, colluded with private persons to secure contracts and favourable tender results.
