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Aircraft maker Boeing’s shares fell 5 percent following the tragic Air India plane crash in Ahmedabad. The incident dealt a big blow to the plane maker whose new CEO is looking to rebuild its trust and reputation after a series of production and safety challenges.
The Boeing 787 is one of the most modern passenger aircrafts in service, not having a fatal crash until the Air India incident. They were grounded in 2013 due to battery issues, but no one was reported injured.
The crash has tarnished the 787’s safety record even as CEO Kelly Orthberg is making efforts to ramp up production as Boeing bagged a flurry of new orders and hit production targets in May, heading into the Paris airshow.
Boeing has, however, faced years of scrutiny over its narrowbody 737 MAX jets, which were grounded after two fatal crashes.
Shares of Spirit AeroSystems, a key supplier, and GE Aerospace, which makes engines for the jet, also fell about 3% each. GE Aerospace said that it had activated its emergency response team and would support the investigation, but did not specify if the Air India aircraft was equipped with its engines.
The Air India crash is termed to be the world’s worst aviation disaster in the past decade. All 242 people onboard except for one were killed in the crash. Vishwash Kumar Ramesh, a 40-year-old a British Indian, miraculously survived.
Source: The Economic Times