Boeing Under Pressure Again After Air India 787 Tragedy In Ahmedabad, Shares Tumble 4.8 Per Cent

Boeing CEO Kelly Ortberg planned to attend the upcoming Paris Air Show, however, those plans have now been shelved as the company prioritises the investigation into the incident.

Despite significant progress in deliveries and over 300 new orders in recent weeks, Boeing’s reputation remains fragile.

Source : Boeing

A fatal crash involving an Air India 787-8 Dreamliner has placed Boeing’s new leadership under fresh scrutiny, just as the company was attempting to rebuild its battered reputation. The aircraft went down shortly after take-off in Ahmedabad, killing nearly all of the 242 passengers and crew, making it the most devastating aviation accident in a decade.

Boeing CEO Kelly Ortberg had planned to attend the upcoming Paris Air Show with Commercial Airplanes chief Stephanie Pope. However, those plans have now been shelved as the company prioritises the investigation into the incident—the first fatal crash involving the 787, its most advanced wide-body aircraft, reported Reuters.

"As our industry prepares to start the Paris Air Show, Stephanie (Pope) and I have both canceled plans to attend so we can be with our team, and focus on our customer and the investigation," Ortberg wrote in a message to employees.

The aircraft, which entered service with Air India in 2014, had logged over 41,000 flight hours and had flown 58 times in May and 21 times in June, according to Cirium and FlightRadar24. While experts have not pointed to a manufacturing or design flaw at this stage, Boeing has confirmed it is ready to provide technical support. "Safety is foundational to our industry and is at the core of everything that we do," Ortberg noted. "Our technical experts are prepared to assist investigators... and a Boeing team stands ready to travel to India."

Concerns Over Safety Record and Market Perception

Despite significant progress in deliveries and over 300 new orders in recent weeks, Boeing’s reputation remains fragile. The company's share price dropped by 4.8 per cent on Thursday, reflecting market anxiety. "Previous production issues at Boeing will be very much on people’s minds at the moment and the relatively new leadership at Boeing needs to be visible in the days to come," said Paul Charles, CEO of the PC Agency, a travel consultancy in London.

The crash comes after years of reputational damage, most notably involving the 737 MAX series. These jets were grounded following two fatal crashes and a high-profile incident in January 2024 when a door plug blew off mid-flight, prompting leadership changes at the top, including the resignation of CEO Dave Calhoun.

Although the 787 has maintained a strong safety record since its 2013 grounding over battery issues, the latest crash could renew regulatory pressure. “Due to the crash, there could be enhanced scrutiny on manufacturing and quality procedures. However, at this time, we do not feel there will be a long-term impact to production,” said Edward Jones analyst Jeff Windau.

Public sentiment has not fully recovered either. Boeing ranked 88th in the latest Axios Harris poll assessing the reputations of 100 well-known corporations, unchanged from the previous year.

As investigations proceed, Boeing faces the complex task of supporting affected families, cooperating with regulators, and reinforcing public trust—all while contending with renewed global scrutiny.