Boeing Shares Hit After 787-8 Dreamliner With 242 Onboard Crashes In India

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(RTTNews) - Boeing Co. shares are currently down around 8 percent in the pre-market activity on the NYSE after an Air India aircraft headed to London with 242 people onboard crashed immediately after take-off in the Indian city of Ahmedabad.

The plane, a Boeing 787-8 Dreamliner headed to Gatwick Airport in the UK, crashed in a civilian area near the Sardar Vallabhbhai Patel International Airport at 1.38 pm local time. The Air India flight AI 171 carried 232 passengers and 10 crew members.

Rescue operations are underway, while several casualties are feared.

While responding to the news, Boeing reportedly said, "We are aware of initial reports and are working to gather more information."

The crash is the first for the aerospace major's 787-8 Dreamliner, which is considered to be one of the most modern passenger aircraft in service.

Air India is owned by Indian conglomerate Tata Group. Following the incident, N Chandrasekaran, chairperson of Tata Group in an official statement said, "With profound sorrow, I confirm that Air India Flight 171 operating Ahmedabad London Gatwick was involved in a tragic accident today. Our thoughts and deepest condolences are with the families and loved ones of all those affected by this devastating event."

The tragic news comes as Boeing is taking efforts to resolve safety issues that had hit the planemaker hard in the past, mainly issues with its popular 737 MAX, which resulted in increased regulatory scrutiny.

The planemaker had halted its production many times over these years amid various challenges, including two fatal crashes, the COVID-19 pandemic, supply chain problems, and production safety concerns.

Amid the safety issues, last year, a mid-cabin door plug on Alaska Airlines' Boeing 737-9 MAX airplane blew out in the middle of the flight, and Southwest Airlines' Boeing 737-800 flight had an emergency landing after its engine cover fell off and struck the wing flap during take-off.

Earlier, in March 2019, 737 MAX, which was then the world's biggest-selling aircraft, was grounded worldwide for a long time following two crashes within just six months, which together claimed 346 lives.

Amid the significantly growing global demand for air travel, Boeing in December last year had restared the production of its best-selling 737 MAX jetliner.

Recently, the company had also reported narrower net loss in its first quarter, and a core operating profit compared to prior year's loss, with significantly higher revenues, primarily due to improved operational performance and commercial delivery volume.

In the pre-market activity on the NYSE, the shares are currently trading at $197.83, down 7.56 percent.