Boeing Shares Slide After Deadly Air India Crash Raises Fresh Safety Fears

Boeing (NYSE:BA) shares dropped nearly 5% on June 12, following a fatal crash involving an Air India-operated Boeing 787 Dreamliner in Ahmedabad. The aircraft, operating as Flight AI171, went down shortly after takeoff, killing 241 of the 242 people onboard and causing additional casualties on the ground. The crash marks the first catastrophic loss of a 787, a model previously lauded for its clean safety record.

The sell-off wiped billions from Boeing’s market cap, and dragged shares to around $203 by market close. Pre-market trading on June 13 suggested further weakness, with shares dipping below $201. The timing couldn’t be worse: Boeing has been trying to regain industry trust after a string of quality control issues and regulatory setbacks dating back to the 737 MAX crisis.

Regulators from India, the United States, and the United Kingdom have launched a joint investigation into the cause. Early reports suggest no immediate mechanical explanation, but scrutiny is intensifying as pressure mounts on Boeing to defend its production practices and quality assurance measures.

Analysts are divided. Some view the sharp decline as an emotional market response, arguing that the long-term impact depends on whether the investigation uncovers a design flaw. Others warn that even a single high-profile failure could delay certifications, chill airline orders, and erode progress made in recent quarters.

For Boeing, the crash reopens questions it thought it had put to rest, and investors are once again left wondering whether the skies are truly clear.

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