The Boeing Co. has suffered a 7 percent decline in its stocks in the share market after it was bashed for passenger safety concerns. On Thursday, a Boeing 787-8 Dreamliner crashed tragically after taking off from Sardar Vallabhbhai Patel International Airport, Ahmedabad, India in the nearby locality. The passenger airplane was supposed to reach London Gatwick with 242 passengers traveling in the flight.
What happened?
As per the reports, flight AI-171 just took off from the airport when it contacted Mayday due to the non-functionality of some features. The plane crashed not so far from the Airport, in the Meghnaninagar locality where a Medical College hostel was built.
As soon as the plane crashed, it caught fire, and huge black clouds of smoke started taking over the clear sky. Emergency teams and the National Disaster Response Force (NDRF) came to rescue the victims of the crash and rushed them to the nearest hospitals as soon as possible. There is no information about the victims and the fatalities due to the crash from the authorities so far.
What is the opinion of the authorities on the crash?
The authorities have given their condolences to the families and individuals who were lost in this tragic accident. The Aviation Minister, Jyotiraditya Scindia, expressed his dilemma on such an incident and has commanded a full investigation regarding the crash. According to him, the flight data recorders have been recovered, and thus, the cause of this incident can be found out soon.
The aviation analyst, Kapil Kaul, has expressed the severity of this incident and how it is going to badly impact Boeing and its credibility. He has also advised the company to reassure the public by taking suitable measures for passenger safety, as it is soon going to be taken down.
Boeing is under a reputational crisis.
This crash is not the first case where Boeing’s reputation has been put at stake. The US airline giant of the US has been under pressure from several technical issues for a long time. Its airplane 737 MAX and 787 models have been reported for technical issues and such accidents for a very long time. This accident has increased one more load on the company, which it has to solve as soon as possible.
The authorities of the US and the world are already pointing their fingers at Boeing Co. due to the continuous safety breaches in its aircraft over time. This accident is just going to make it worse as they have to give answers to the public and the authorities.
Impact of the crash on BA’s stocks
As the trust of safety has been broken again and again by Boeing, the investors have started backing out of the company. They fear that in the future, the company is going to face high liabilities, more fallout, and worse order cancellations, which will directly impact their investment. Due to this, the stock prices fell sharply, which may even make you collapse with its intensity.
The US Federal Aviation Administration is in constant contact with the Indian Aviation Team to find out more information regarding the incident. Boeing is already facing a tough competition with Airbus and in such condition it may lose its contracts with several Indian Airlines causing a major setback for the company.
Conclusion
Boeing has to go a long way to rebuild the lost trust of not only the passengers but the world due to its increasing incompetency around the globe. Such frequent accidents do not indicate good goodwill for the company which has already become a target of the globe due to the technical issues faced by its aircraft.
