Boeing Co. (NYSE:BA) is facing mounting pressure as India’s aviation ministry reportedly considers temporarily grounding the country’s Boeing 787-8 fleet following a catastrophic Air India crash that killed over 240 people near Ahmedabad.
What Happened: The fatal incident occurred when Air India flight AI171, a Boeing 787-8 Dreamliner bound for London, crashed moments after takeoff from Sardar Vallabhbhai Patel International Airport. According to NDTV Profit, citing sources, India’s Ministry of Civil Aviation is reviewing safety protocols for all Boeing 787-8s in Indian service.
Air India operates 34 Boeing 787-8 Dreamliners, the largest domestic fleet of the aircraft type. The airline faces potential scrutiny over maintenance practices as talks proceed with Boeing India, the National Transportation Safety Board, and the Federal Aviation Administration, though outcomes remain uncertain.
India’s Ministry of Civil Aviation did not immediately respond to Benzinga‘s request for comment.
Boeing CEO Kelly Ortberg canceled his planned Paris Airshow attendance, telling staff he and Commercial Airplanes head Stephanie Pope would “focus on our customer and the investigation.” The decision disrupts Boeing’s presence at aviation’s premier trade event, running June 16-20 at Le Bourget, Reuters reported.
General Electric Co. (NYSE:GE) also postponed its June 17 investor day, originally scheduled to coincide with the airshow, according to Reuters. GE Aerospace, whose engines powered the crashed aircraft, said it would deploy a team to India for data analysis. “GE Aerospace’s senior leadership is focused on supporting our customers and the investigation,” the company stated.
Why It Matters: The crash snapped Boeing’s recent recovery momentum. Analysts had upgraded the stock with RBC and TD Cowen issuing $230 price targets, while Bank of America moved to Buy. Boeing gained 13% year-to-date through Tuesday, boosted by resumed 737 MAX deliveries to China and a $96 billion Qatar Airways deal.
The incident adds to Boeing’s safety challenges following the 2024 JejuAir crash that killed 179 passengers and ongoing FAA production caps on 737 MAX aircraft. Boeing’s entire 787 fleet was previously grounded in 2013 due to battery safety issues.
BA shows strong momentum but lags on growth and valuation metrics, according to Benzinga Edge Stock Rankings. However, the stock maintains a positive price trend across short to long-term periods. See the full breakdown here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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