Kolkata: The shares of Boeing dipped by close to 5% in the New York stock exchange on Thursday after a London-bound Boeing Dreamliner went down within minutes of taking off from Ahmedabad airport killing 241 of the 242 persons on board. This was the first fatal accident involving a Boeing Dreamliner that was in the news over the past several years after a whistleblower in Boeing said that the aircraft was a disaster waiting to happen.
According to NYSE data, the shares of Boeing dipped to $203.75, down $10.25 or 4.79% during the trading session on June 12. A day earlier, the stock ended at $214.00, down $1.84 (or 0.85%). According to reports, the stock had plunged nearly 8% in the pre-market trading hours after news of one of the worst air accidents in the world in recent years spread around the globe in minutes.
Investors jittery
The sell-off in the Boeing counter took place as the Ahmedabad air crash heightened concerns about the safety of this much-touted aircraft from Boeing. The Air India flight AI171, operating a Boeing 787-8 aircraft, crashed minutes after takeoff. The incident reignited concerns over the reliability of the model of which Boeing was proud and highlighted it as a leap in technology. However, it was plagued by quality issues and delivery delays and alerted regulators and airlines, especially after a whistleblower from the company described it as a disaster waiting to happen.
The National Transportation Safety Board (NTSB) of the US said it will send investigators to India to assist the authorities in the crash probe. “The U.S. government will not hesitate to implement any safety recommendations that may arise. We will follow the facts and put safety first,” said US transportation secretary Sean Duffy.
In the meantime, Boeing President and CEO Kelly Ortberg spoke to Tata Group chairman N Chandrasekharan and offered full support to Indian investigators. “Our deepest condolences go out to the loved ones of the passengers and crew on board Air India Flight 171, as well as everyone affected in Ahmedabad,” Ortberg said in a statement.
Among the victims were 169 Indian nationals, 53 British nationals, seven Portuguese nationals and one Canadian national. Investors are worried that the incident can lead to a series of new investigations and could result in legal challenges.
The shares of Boeing dipped by close to 5% in the New York stock exchange on Thursday. The day before the stocks were down by 0.84%. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
