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Shares of Boeing, the aircraft manufacturer, dropped nearly 8 percent during premarket trading in the US on Thursday following a tragic incident involving an Air India flight. The plane, carrying 242 individuals, went down shortly after taking off from Ahmedabad in western India.
The Indian Minister of Health reported that there were “many fatalities” as a result of the crash. The aircraft was en route to Gatwick Airport in the UK and reportedly went down in a residential area close to the airport in Ahmedabad.
According to aviation tracking service Flightradar24, the aircraft was identified as a Boeing 787-8 Dreamliner, one of the latest models currently in operation. The cause of the crash has yet to be determined. Boeing issued a statement acknowledging the early reports and stated that they are in the process of gathering additional details.
The 787 series is known for its robust safety record, with no reported fatal accidents, despite having faced previous battery-related issues that temporarily grounded the fleet without any injuries.
This unfortunate event comes at a time when Boeing is attempting to restore confidence in the safety of its airplanes and increase production efforts under the leadership of the new CEO, Kelly Orthberg.
In response to the incident, Boeing’s stock experienced a decrease of approximately 7.5 percent, trading at $197.82 before the market opened. Chris Beauchamp, an analyst with IG Group, remarked, “This is a knee-jerk reaction to the incident, reflecting renewed concerns about the issues that have affected Boeing and its aircraft in recent years.”