Market Fallout: The tragic accident in Ahmedabad has triggered panic across the aviation sector, with Boeing suppliers and rival manufacturers reacting sharply to the market tremors.
BY PC Bureau
Boeing Co.’s shares plunged nearly 8% in pre-market trading Thursday following the catastrophic crash of Air India Flight AI171, a Boeing 787-8 Dreamliner that went down in Ahmedabad, killing more than 100 people. The aircraft, bound for London Gatwick, crashed just minutes after takeoff from Sardar Vallabhbhai Patel International Airport, marking the first fatal accident involving the Dreamliner model since its introduction in 2011.
The market’s reaction was swift and brutal. By midday, Boeing stock had tumbled to $197.45, wiping out billions in market capitalization and triggering broader anxiety across the aviation sector. Shares of GE Aerospace, which supplies engines for the Dreamliner, also dropped nearly 5%.
A Blow to the Dreamliner’s Impeccable Record
The Boeing 787, celebrated for its carbon-fiber fuselage, fuel efficiency, and long-range capacity, had logged more than a decade of accident-free operation across global airlines. With over 1,100 aircraft in service and more than 680 million cumulative flight hours, the model was a cornerstone of Boeing’s commercial reputation. The crash of Flight AI171 has now shattered that safety record, raising questions about design, operational protocols, and maintenance regimes.
“Boeing investors have been on edge since the 737 MAX crisis,” said aviation analyst Carla Morris of AeroTrack Global. “This incident, though involving a different aircraft line, revives old fears. The market hates uncertainty—and a fatal Dreamliner crash is peak uncertainty.”
READ: Air India Crash: Bodies recovered Charred Beyond Recognition
Concerns Over Possible Mechanical Failure or Bird Strike
While investigations are ongoing, early speculation points to either a possible bird strike or a tail strike on takeoff that compromised the aircraft’s systems. Pilots of AI171 had issued a brief MAYDAY before the aircraft descended uncontrollably into the Meghaninagar neighborhood. Rescue operations have so far confirmed over 100 deaths, with many more missing.
Extremely shocked and saddened by the news of the Air India AI-171 Ahmedabad to London flight crash in Ahmedabad.
My thoughts and prayers are with all those on board and their families. pic.twitter.com/uFjpSakymk
— Teginder Singh (Modi ka Parivar) (@TeginderA) June 12, 2025
Aviation regulators worldwide are closely monitoring the findings. The Directorate General of Civil Aviation (DGCA) in India has recovered the aircraft’s black boxes, which are now being examined in collaboration with Boeing, Air India, and the UK’s Air Accidents Investigation Branch (AAIB).
Ripple Effects in the Market
Boeing’s sharp drop affected other aerospace and aviation-linked stocks as well. Spirit AeroSystems, Collins Aerospace, and Honeywell all saw minor declines in anticipation of regulatory scrutiny and supply chain disruptions.
In contrast, shares of rival Airbus SE gained modestly by 1.2% on European exchanges, driven by market anticipation that airlines might reconsider future Dreamliner purchases in light of this tragedy. Analysts, however, caution against hasty conclusions, noting Boeing’s deep order book and the aviation sector’s long memory for technical detail and regulatory clarity.
READ: Air India crash: First-ever fatal Traged of Boeing 787 Dreamliner
Boeing Responds
In a statement released Thursday afternoon (IST), Boeing expressed condolences to the victims and confirmed its full cooperation with Indian and international investigators. “We are deeply saddened by the loss of life aboard Flight AI171. Boeing technical teams are on standby to assist the investigative process,” the company said.
While it stopped short of acknowledging any fault, Boeing’s leadership is reportedly preparing for a series of high-level meetings with regulators and airline customers over the coming week. The company also postponed a planned investor call originally scheduled for Friday.
India’s Aviation Sector in Focus
This disaster is a grim reminder of past aviation tragedies in India, including the 2020 Kozhikode runway overrun and the 2010 Mangalore crash. With AI171’s death toll possibly surpassing 1988’s Indian Airlines Flight 113 disaster—also in Ahmedabad—it stands to become one of the worst passenger aircraft accidents in Indian history.
Union Civil Aviation Minister Ram Mohan Naidu has pledged a transparent and timely investigation, while Gujarat Chief Minister Bhupendra Patel is coordinating relief and forensic efforts on the ground. Air India has activated a crisis helpline and is arranging for the transport of victim families.
Much will depend on the outcome of the investigation. If systemic faults are discovered in the Dreamliner fleet, Boeing could face further scrutiny from the Federal Aviation Administration (FAA), European Union Aviation Safety Agency (EASA), and Asian regulators. At stake is not only the Dreamliner’s future but Boeing’s recovery narrative post-737 MAX.
For now, the market is watching. And grieving.
