Flight AI‑171, en route from Ahmedabad to London-Gatwick, lost altitude shortly after takeoff while the landing gear was still extended. The plane crashed into a residential area and burst into flames on impact. Among the passengers were 169 Indian nationals, 53 British citizens, seven Portuguese, and one Canadian. Although authorities have reported at least one survivor, the explosion in a densely populated area has raised fears of a much higher death toll.
Market reactions were immediate. Boeing shares fell 8% in pre-market Wall Street trading, dropping to $196.75 after the accident was reported. Key suppliers such as Spirit AeroSystems and GE Aerospace also suffered losses of around 4%, reflecting the domino effect across the entire aviation supply chain.
The airline industry was already under pressure from falling ticket prices — down 2.7% in the U.S. in May — and rising fuel costs, with Brent crude climbing 4% in a single day. This new accident adds further uncertainty to a sector grappling with tighter regulations, escalating costs, and increasingly volatile demand.
For Boeing, the crisis compounds a critical period: the company has posted losses for six consecutive years, with total losses exceeding $35.5 billion and nearly $12 billion in deficits in 2024 alone. Boeing has reduced its workforce by about 10%, faced labor strikes, and suffered delivery delays. Although its order backlog remains robust at over $521 billion and more than 5,500 aircraft, competition is heating up: Airbus delivered 766 aircraft compared to Boeing’s 348 and secured 826 net orders versus Boeing’s 279.
The recent nominee by former President Donald Trump to head the FAA has already announced plans to demand stricter accountability from Boeing regarding product quality. This increased regulatory scrutiny comes at a pivotal moment, with both political and social pressures mounting. Authorities and the public alike are calling for immediate corrective actions, enhanced inspections, and clear evidence that safety and transparency are being prioritized.
The Air India crash raises serious questions about the Dreamliner’s viability — a model designed for efficiency with composite materials — as its certification record had remained incident-free until now. The operational and commercial fallout could lead to order cancellations, renegotiations, and delivery delays, which had already been a recurring issue over the past year.
Airlines, aware of the public’s heightened sensitivity and the intense media coverage, will now need to bolster their communication strategies, maintenance procedures, and service reliability to counter growing mistrust. Both manufacturers and regulators will be under pressure to conduct comprehensive audits aimed at preventing future incidents, restoring safety standards, and mitigating the risk of deeper economic consequences.
The crash of the Air India Boeing 787 is not only a human tragedy but also a turning point for the global aviation industry. Boeing now stands at a crossroads: it must take decisive action to correct deep-rooted structural flaws and regain lost trust, or face a prolonged reputational and financial decline that could reshape the landscape of global air travel for years to come.
