American aircraft Boeing Shares Plunge, Orders Halted
Article Today, America
The recent plane crash in Ahmedabad has delivered a significant setback to American aircraft manufacturer Boeing, further damaging its already troubled reputation. The incident involved a Boeing 787-8 Dreamliner, one of the company’s most popular and widely used aircraft, raising renewed concerns about Boeing’s safety record and manufacturing standards.
Severe Impact on Boeing’s Market Value
Following the crash, Boeing’s shares tumbled sharply on the American stock market (Nasdaq), with a decline ranging between 6.5% to 8%. This steep fall has reportedly wiped out close to ₹1 lakh crore in the company’s market value in a single trading session. Analysts describe this as a major financial and reputational blow to Boeing, which has been battling a series of production and safety issues over recent years.
The incident not only affected Boeing but also triggered a ripple effect across the global aviation sector. Indian carriers like IndiGo and SpiceJet experienced immediate declines in their stock prices, with losses of approximately 2.5% and 3% respectively. The crash has heightened investor concerns about the reliability of Boeing aircraft currently in service with several international and domestic airlines.
Air India Suspends Future Boeing Orders
In a significant development, Air India’s Chief Executive Officer told Reuters that the airline would temporarily halt new orders for Boeing aircraft until quality and safety concerns are fully addressed. Air India, now under the ownership of the Tata Group, has been working to rebuild its brand image and position itself as a competitive global airline.
