Boeing shares fall 8% after Air India Dreamliner crashes in Ahmedabad

Shares of US aerospace giant Boeing (BA.N) fell 8% in premarket trading on Thursday, following reports that an Air India aircraft, carrying 242 passengers, crashed minutes after takeoff from Ahmedabad, India.

According to aviation tracking service Flightradar24, the aircraft was a Boeing 787-8 Dreamliner, one of the company’s most advanced and widely used long-haul passenger jets. The flight was en route to London Gatwick Airport.

Police sources stated that the aircraft crashed in a civilian area near the airport, although details regarding casualties have not yet been confirmed.

Boeing responded to the incident, saying in a statement, “We are aware of the initial reports and are working to gather more information.”

Read: Air India flight crashes in Ahmedabad, with 169 Indian, 61 foreign nationals on board

The crash came at a critical time for Boeing, as the company was working to regain public and industry trust following a series of high-profile safety issues in recent years. 

New Chief Executive Officer Kelly Orthberg has been focused on improving production reliability and rebuilding the firm’s damaged reputation.

In response to the incident with Air India, Boeing’s stock was trading at $196.52 in early premarket hours, reflecting an 8% decline.

“It’s a knee-jerk reaction to the incident,” said Chris Beauchamp, chief market analyst at IG Group, adding, “there are renewed fears linked to the problems that have plagued Boeing aircraft and the company itself in recent years.”

Investigations into the cause of the crash are ongoing.