Boeing's latest calamity: Air India plane crash adds to woes
Revised Base Article
The latest crash of a Boeing 787 passenger jet in India has once again shone a glaring light on an embattled aviation manufacturer, as the reason for the devastating accident remains unclear. The doomed Air India 787 plummeted to the ground in the northwestern city of Ahmedabad just minutes after takeoff, carrying more than 240 individuals, according to authorities.
The Dreamliner, also known as the 787, was first introduced to commercial service in 2011, and until the horrific incident in India, this was its first fatal crash, as recorded by the Aviation Safety Network database. The fateful event has sent shockwaves through the aviation industry and sent Boeing shares plummeting by over 4 percent during afternoon trading.
One of the factors contributing to the 787's innovative design is its extensive use of lithium-ion batteries, which are lighter, recharge faster, and store more energy compared to other types of batteries. However, these batteries' unique properties have also been linked to incidents like overheating and, in some cases, sparking fires. In 2013, the 787 fleet was temporarily grounded due to such battery issues.
Other airport calamities plaguing Boeing's reputation include the persistent problems associated with its best-selling 737 Max aircraft. The tragic crashes of two 737 Max jets—one in Indonesia in 2018 and another in Ethiopia in 2019—claimed the lives of 346 people in total. The disasters were primarily attributed to a sensor fault that resulted in incorrect readings, causing the plane's nose to dive, effectively leaving pilots powerless to regain control.
In the wake of the second crash, 737 Max jets were grounded worldwide until Boeing redesigned the system. In a move that spared the company from criminal prosecution, the US Department of Justice reached a deal last month to allow Boeing to avoid charges for allegedly misleading US regulators about the Max before the disasters.
Adding fuel to the fire, a door plug on a Max aircraft operated by Alaska Airlines came loose during a flight, triggering the suspension of Boeing production cap at 38 jets per month by regulators.
Financial troubles also loom large over Boeing, with the company reporting a staggering $11.8 billion loss in 2021, pushing its total losses since 2019 beyond $35 billion. These struggles were further magnified by a strike involving machinists who construct Boeing's aircrafts at its factories in Renton and Everett, Washington, a walkout that halted production and hampered the company's delivery capabilities.
While Boeing reported a more modest loss of $31 million for the first quarter of 2023 compared to the previous year, the ongoing scrutiny and strike have led to a decline in aircraft deliveries. In 2021, Boeing shipped 348 jetliners, marking a 38 percent decrease compared to the 528 it delivered in 2020. Despite this, Boeing's aircraft orders from two Middle Eastern customers have continued to roll in, with a $96 billion deal for 787 and 777X jets from Qatar Airways Co inked recently, representing the largest order for 787s and wide-body jets in Boeing's history.
Enrichment Data Integration:
- The recent crash of an Air India Boeing 787-8 Dreamliner in Ahmedabad, India, has raised concerns and prompted investigations from Indian authorities, as well as U.S. agencies such as the National Transportation Safety Board (NTSB) and the Federal Aviation Administration (FAA).
- Prior incidents involving the 787 Dreamliner include the sudden drop of a LATAM Airlines 787 in March 2024 due to the pilot's seat malfunctioning, injuring passengers and crew members.
- Ongoing safety concerns regarding the 787 Dreamliner include issues with fuselage gaps, composite gap management, and manufacturing practices.
- The 737 Max aircraft, which has been the source of persistent problems for Boeing, was grounded worldwide following two fatal crashes in Indonesia and Ethiopia in 2018 and 2019, respectively. The crashes were primarily caused by a sensor that provided faulty readings, pushing the nose down and leaving pilots unable to regain control.
The financial industry is closely monitoring Boeing's ongoing issues with its aviation sector, particularly the aftermath of the recent Boeing 787-8 Dreamliner crash in India and previous incidents like the 737 Max crashes. Despite a recent substantial deal with Qatar Airways, the sports-betting market might see reduced interest in Boeing's stock due to the persistent troubles in the aerospace sector affecting their financial performances.
