Boeing shares crash: Boeing shares crash after Ahmedabad plane crash

News Topical, Digital Desk : The impact of the tragic accident of Air India flight AI171 in Ahmedabad has started showing in the global markets as well. Shares of American aircraft manufacturer Boeing fell by up to 8% in pre-market trading on Thursday. Boeing 787 Dreamliner, which was going from Ahmedabad to London, crashed just minutes after take-off. There were a total of 242 people on board the plane.

Boeing said in a statement:

We are aware of the preliminary report and are trying to gather more information. Boeing is an important part of the Dow Jones Industrial Average Index and has a weightage of 3.09%. Due to the fall in the company's shares, Dow Futures have also fallen by 300 points.

Previous incidents and impact - In 2013, problems were found in the electrical system of the Dreamliner in the second year of its entry into service. The FAA then grounded the entire 787 fleet. In May this year, KLM Royal Dutch Airlines grounded seven 787 aircraft when maintenance defects were found. Boeing has previously also faced major problems like the grounding of the 737 MAX aircraft (March 2019 - December 2020).

Current situation- Boeing shares are trading at $198.3 in the pre-market, which shows a decline of 7.3%. Due to the seriousness of the plane crash, investors' concern in the market has increased, and eyes are fixed on Boeing. This decline is an indication of how widely the plane crashes can affect the brands of companies and the trust of investors. There is also a possibility of regulatory action against Boeing after the investigation.