logo
Ahmedabad plane crash may dent Boeing plane orders

Ahmedabad plane crash may dent Boeing plane orders

Economic Times12-06-2025
Reuters A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad
Troubled American plane maker Boeing might see its challenges mounting after an Air India Boeing 787-8 Dreamliner, flying from Ahmedabad to Gatwick, crashed immediately after takeoff from Ahmedabad today. There were 242 people on board the aircraft, including pilots and cabin crew. The aircraft issued a MAYDAY call to ATC, but thereafter did not respond to calls made by ATC, aviation regulator DGCA said in a statement. "It gave a MAYDAY call to ATC, but thereafter, no response was given by the aircraft to the calls made by ATC. Aircraft immediately after departure from Runway 23, fell on the ground outside the airport perimeter. Heavy black smoke was seen coming from the accident site," said the DGCA, as quoted by ANI.While it's too early to determine what caused the plane crash, the incident will bring Boeing back into focus. Boeing planes have been involved in several incidents in the past few years, raising doubts about the quality of production.
Also Read | Ahmedabad Plane Crash: Air India passenger plane with 242 onboard crashes near Meghaninagar
Boeing weighed down by controversies Boeing has been mired in a series of controversies over the past several years. These issues span safety concerns, corporate governance, regulatory scrutiny and production quality problems. The most significant catalyst was the two fatal crashes involving the 737 MAX aircraft, but the implications have extended well beyond that. Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019 crashed within minutes of takeoff, killing 346 people. Both crashes were linked to a faulty system known as the Maneuvering Characteristics Augmentation System (MCAS). The flawed software pushed the nose of the aircraft downward based on erroneous sensor data. This led to a global grounding of the 737 MAX fleet for over 20 months. US Congressional investigations revealed a 'culture of concealment' at Boeing.
Last year in January, a door plug panel on a 737 MAX 9 aircraft of Alaska Airlines blew out mid-flight due to missing bolts, narrowly avoiding a catastrophe. Federal Aviation Administration grounded the MAX 9 temporarily and launched a detailed audit into Boeing's production line. This resulted in additional penalties, delays in aircraft certification (including the 737 MAX 7 and MAX 10), and further erosion of trust.Boeing's corporate culture has been criticized as overly focused on cost-cutting and shareholder returns at the expense of engineering excellence and safety. A series of executive turnovers, including the ousting of former CEO Dennis Muilenburg, signaled internal turmoil.Boeing faces competitive pressure from Airbus, which has gained market share during Boeing's turmoil. Continued delivery delays have strained relationships with airline customers, many of whom are diversifying their fleet choices.
The Boeing 787-8 Dreamliner model, which crashed in Ahmedabad today, has faced recurring technical scrutiny in recent years. A previous Economic Times report documented repeated diversions of a Dreamliner with registration code N819AN due to hydraulic leaks and flap malfunctions, leading to multiple flight cancellations in a span of just 25 days earlier this year. In addition, Boeing engineer and whistleblower Sam Salehpour had earlier raised alarms in the US media, alleging that the company took manufacturing shortcuts on both the 777 and 787 Dreamliner models. Salehpour warned that such compromises could pose catastrophic risks as these aircraft age.
Also Read | Air India plane crash: One survivor found in seat 11A, currently under treatment
Boeing's mega order pipelineIn recent years, Indian airlines have placed significant orders for Boeing aircraft, in response to the country's burgeoning aviation market. These acquisitions are pivotal in shaping the future of air travel in India, aligning with both domestic growth and international expansion objectives.The substantial Boeing aircraft orders by Indian airlines are driven by the need for fleet modernization, network expansion and enhanced operational efficiency. As the Indian aviation sector continues to grow, these investments position airlines to meet future demands and maintain competitiveness in a rapidly evolving market.In 2023, Air India ordered 220 jets from Boeing to revive its appeal with an all-new fleet. The airline also signed options to buy an additional 70 planes from Boeing, including 50 737 MAXs and 20 787 Dreamliners. Air India is said to be in discussions with Airbus and Boeing for a significant new aircraft order that may include around 200 additional single-aisle jets, industry sources told Reuters recently. Akasa Air, a low-cost airline which started operations about three years ago, has 226 Boeing 737 MAX jets on order. While Indigo operates a few Boeing jets, it has ordered over 900 planes from Airbus.In recent years Boeing has grappled with internal and external production problems and constraints. A strike last year at its plants in Washington and Oregon shut down production of the popular single-aisle airplane.Boeing's woes have hit airlines globally. Delayed deliveries are frustrating airlines. At Akasa Air, hundreds of anxious pilots remain idle without work due to delayed deliveries. Air India's expansion plans can face challenges due to aircraft delivery delays. US budget carrier Southwest Airlines, which operates an all-Boeing fleet, had to lay off workers company-wide for the first time in its history, in part due to delivery delays.If the Ahmedabad plane crash probe reveals a production problem with Boeing 787-8 Dreamliner, it will be another Boeing aircraft to come under controversy after Boeing 737 MAX 8 and 9. Air India and Akasa, which have together ordered more than a thousand Boeing jets, might feel further pressure. Further scrutiny and regulatory pressure can impact production schedules. Air India has placed orders for 20 Boeing 787-9 Dreamliner aircraft too besides other Boeing jets. Last month, Qatar Airways signed a mega deal with Boeing which included 130 Dreamliners during US President Donald Trump's visit to the country.
(With inputs from agencies)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Equities still worth a bet, but tread lightly: Richard Harris
Equities still worth a bet, but tread lightly: Richard Harris

Economic Times

time39 minutes ago

  • Economic Times

Equities still worth a bet, but tread lightly: Richard Harris

Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "It is a lot of cash to find for American buyers because, of course, they are the ones who are going to be paying at the end of the day. So, you have to think that that is going to have a detrimental effect on trade and a detrimental effect on growth that will counteract all the positive features that the big beautiful bill was intended to have," says Richard Harris Well, I am not sure it is blinding everybody, but it is definitely having a big impact on what is happening. Clearly, the big beautiful bill or ugly bill, as you might call it, is going to have quite a big impact. That is going to put trillions of dollars into the economy. And as we know, if you put that sort of money into the economy, it ends up in asset prices. So, I think that equities are taking some strength from that. But one of the biggest reasons why we have seen prices move up recently is because Trump comes in with a scary figure or scary announcement such as the 2nd of April tariff increases. And what have we seen since then are roll backs from them. So, the market has seen each little roll back as a victory, as good bit by bit, it is priced things back up again and that is what we are seeing at the moment that we are actually seeing small pieces of good news. But if you look at the good news, you can sort of say, well, tariffs in China were going to be 145%. Now, they are going to be 50%, maybe they will be lower. Vietnam 48% or something, maybe they will be 20%, that all seems to the market to be good news. But in reality, that 20% is still very high. It is a lot of cash to find for American buyers because, of course, they are the ones who are going to be paying at the end of the day. So, you have to think that that is going to have a detrimental effect on trade and a detrimental effect on growth that will counteract all the positive features that the big beautiful bill was intended to the extraordinary thing if you do a survey of how much people have been searching for the word tariff, it has gone down pretty well solidly from April 2nd. And what we have had over the last couple of weeks, we have had a lot of news about Iran, a lot of news about global politics, what is going to happen to oil we have been talking recently, we have been talking in the last week about what has happened to the big beautiful bill. Well, that was strong armed through. Now, the markets are going to start focusing on tariffs. But they have really not paid much attention to it since April the 2nd, thinking that Trump is going to chicken out. Well, we will have to see if that happens. But on those countries that have signed deals with the US already, tariffs are an awful lot higher than they were at the beginning of the year. So, I think that that is really the factor that we should be looking at not the fact that we have had good news coming because some of these very high tariff levels have been what is basically happening is that there is a big delay in numbers. The big factor that has confounded economists, of course, is how is it that we have seen the economy stay fairly strong despite all these potential features of bad news coming around. Well, a lot of the bad news has not hit tariffs have not necessarily hit. Issues with the deficit have not necessarily hit. But generally, the bad news has not really hit yet, that is further down the line and it is going to be the same with the big beautiful bill. The tax cuts are going to happen soon. The benefit cuts are going to happen later and over time. So, initially, the markets will still stay pretty buoyant because they would not have an awful lot of reason to sell off.I think equities, maybe less weighted, less highly weighted than they have been previously, but equities will still continue because bull markets die hard.

Make $1 billion loss in stock futures to earn $5 billion profit in options: Sebi exposes Jane Street's Baazigar strategy
Make $1 billion loss in stock futures to earn $5 billion profit in options: Sebi exposes Jane Street's Baazigar strategy

Time of India

time42 minutes ago

  • Time of India

Make $1 billion loss in stock futures to earn $5 billion profit in options: Sebi exposes Jane Street's Baazigar strategy

"Kabhi kabhi kuch jeetne ke liye kuch haarna bhi padta hai. Aur haar kar jeetne wale ko baazigar kehte hain! " That isn't just Shah Rukh Khan's immortal dialogue from the Bollywood thriller 'Baazigar', but also American hedge firm Jane Street's trick to make money in the Indian stock market. After a year-long investigation into how Jane Street manipulated Indian markets to amass huge profits, markets regulator Sebi found that the firm made profits of Rs 43,289.33 crore (roughly $5 billion) in index and stock options, while deliberately losing a billion dollars - Rs 7,208 crore in stock futures, Rs 191 crore in index futures, and Rs 288 crore in cash equities trading. The net result: Jane Street made a total profit of more than Rs 35 ,500 crore across all segments during the examination period from January 2023 to March 2025. Sebi's investigation revealed the staggering scale of Jane Street's operations and the calculated nature of their strategy. Within the index options category, Nifty Bank options alone contributed Rs 17,319.26 crore, amounting to 40% of the total index options profits, making it the crown jewel of Jane Street's manipulation strategy. Also Read | Explained: What is Jane Street and how it made Rs 36,500 crore profit by gaming Dalal Street The Baazigar Playbook: How Jane Street Engineered Losses for Bigger Gains Sebi's detailed analysis reveals the intricate mechanics of what the regulator calls Jane Street's "Intra-day Index Manipulation Strategy." Take January 17, 2024, for example, when Nifty Bank opened sharply lower at 46,573.95 compared to the previous close of 48,125.10, reportedly due to market disappointment with HDFC Bank's results. But Jane Street saw opportunity in the chaos. In the morning session, Jane Street executed phase one of its strategy with military precision. The firm aggressively purchased Rs 4,370.03 crore worth of Nifty Bank constituent stocks and futures, becoming 'the single largest net buyer across Nifty Bank components during this patch, by far.' The scale was unprecedented. In all stocks except HDFC Bank, Jane Street 'contributed 15–25% of the entire market's traded value — a remarkably dominant share/concentration.' For perspective, the next highest participant's concentration was only 8.09%, compared to Jane Street's 23.21% in Kotak Mahindra Bank. But here's the masterstroke: while artificially propping up the index through massive buying, Jane Street simultaneously built 'effectively Rs 32,114.96 crore of bearish positions in the much more liquid Nifty Bank index options by buying cheap Put options and selling expensive Call options.' The artificial support created perfect conditions for Jane Street to enter options trades at favorable prices, with other market participants misled by the inflated index levels. Sebi's granular analysis of the first eight minutes (9:15 AM to 9:22 AM) shows the surgical precision of Jane Street's manipulation. During this brief window, the firm purchased Rs 572 crore worth of stocks and futures in six major Nifty Bank components. The impact was immediate and dramatic. 'The Nifty Bank index moved significantly from 46,573.93 to 47,176.97 during this patch, a rise of over 600 points.' At the same time, Jane Street had created 'effective cash-equivalent short Nifty Bank exposure of Rs 8,751 crore' — over 15 times their Rs 572 crore position in cash and futures. In the afternoon, Jane Street executed the second phase with equal aggression. The firm 'reversed and dumped the morning's purchases, and net sold Nifty Bank component stocks, stock/index futures to the tune of Rs 5,372.12 crore.' The result was predictable: 'The resultant downward pressure on Nifty Bank at expiry allowed JS Group to profit immensely from their outstanding net short cash-equivalent positions in the Nifty Bank index options segment.' Jane Street booked a deliberate trading loss of Rs 61.6 crore in cash and futures but made a profit of Rs 734.93 crore in Nifty Bank index options — a return ratio of nearly 12:1. Sebi was unequivocal in calling Jane Street's strategy manipulative, stating: 'What sets apart the trading pattern of the JS Group as described above as prima facie being manipulative is the intensity and sheer scale of their intervention in the underlying component stock and futures markets, the rapid reversal of these large and aggressive trades in cash and futures without any plausible economic rationale — other than the concurrent activity in and impact on their positions in the Nifty Bank index options markets.' The regulator emphasized that 'there is little or no economic rationale to justify such large and aggressive intraday trading activity in stocks and futures on a standalone basis. In fact, given the sheer size, aggression, manner of trading, and transaction costs involved, standalone, such activities could more often than not end with net trading losses.' The Systematic Pattern This wasn't a one-off incident. Across 15 analyzed days, Jane Street 'booked a total intraday trading loss of Rs 199.7 crore in their activities in the Nifty Bank constituent cash stocks and futures markets,' while earning profits of Rs 4,474 crore in Nifty Bank index options. Sebi concluded that the 'demonstrably large and aggressive trading behaviour of JS Group in the Nifty Bank constituent stocks and futures had little standalone economic rationale, other than to manipulate the prices of securities and benchmarks, to mislead, entice, or cause loss to participants in the index options markets.' Perhaps the most damning evidence was Jane Street's systematic approach to incurring losses. Sebi noted that 'incurring losses in cash and futures markets in a deliberate and systematic manner is itself unusual and indicative of fraud.' These losses, the regulator found, were 'incurred as part of the manipulative device to influence the benchmark indices and profit from the positions taken in the index options,' making them integral to the scheme rather than legitimate trading losses. The Verdict Sebi's investigation revealed a sophisticated manipulation scheme where Jane Street weaponised deliberate losses in some segments to generate exponentially larger profits in others. The strategy represents one of the most complex cases of market manipulation ever documented in Indian financial markets. The Rs 35,602 crore net profit stands as a stark testimony to the effectiveness of Jane Street's strategy — even as it highlights the vulnerability of Indian markets to highly coordinated, well-funded, and systematically executed manipulation by global players. Also Read | Jane Street effect: Nuvama shares slump 7% after Sebi order. What's the connection?

Equities still worth a bet, but tread lightly: Richard Harris
Equities still worth a bet, but tread lightly: Richard Harris

Time of India

timean hour ago

  • Time of India

Equities still worth a bet, but tread lightly: Richard Harris

"It is a lot of cash to find for American buyers because, of course, they are the ones who are going to be paying at the end of the day. So, you have to think that that is going to have a detrimental effect on trade and a detrimental effect on growth that will counteract all the positive features that the big beautiful bill was intended to have," says Richard Harris , Port Shelter Investment . Is it the magic of liquidity which is blinding everybody? Richard Harris: Well, I am not sure it is blinding everybody, but it is definitely having a big impact on what is happening. Clearly, the big beautiful bill or ugly bill, as you might call it, is going to have quite a big impact. That is going to put trillions of dollars into the economy. And as we know, if you put that sort of money into the economy, it ends up in asset prices. So, I think that equities are taking some strength from that. But one of the biggest reasons why we have seen prices move up recently is because Trump comes in with a scary figure or scary announcement such as the 2nd of April tariff increases. And what have we seen since then are roll backs from them. So, the market has seen each little roll back as a victory, as good news. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like These Are The Most Beautiful Women In The World Undo So, bit by bit, it is priced things back up again and that is what we are seeing at the moment that we are actually seeing small pieces of good news. But if you look at the good news, you can sort of say, well, tariffs in China were going to be 145%. Now, they are going to be 50%, maybe they will be lower. Vietnam 48% or something, maybe they will be 20%, that all seems to the market to be good news. But in reality, that 20% is still very high. It is a lot of cash to find for American buyers because, of course, they are the ones who are going to be paying at the end of the day. So, you have to think that that is going to have a detrimental effect on trade and a detrimental effect on growth that will counteract all the positive features that the big beautiful bill was intended to have. So, just wondering, now that 9th July approaches closer and closer, what can we hear on the tariff front? Richard Harris: Well, the extraordinary thing if you do a survey of how much people have been searching for the word tariff, it has gone down pretty well solidly from April 2nd. And what we have had over the last couple of weeks, we have had a lot of news about Iran, a lot of news about global politics, what is going to happen to oil we have been talking about. Most recently, we have been talking in the last week about what has happened to the big beautiful bill. Well, that was strong armed through. Now, the markets are going to start focusing on tariffs. But they have really not paid much attention to it since April the 2nd, thinking that Trump is going to chicken out. Well, we will have to see if that happens. But on those countries that have signed deals with the US already, tariffs are an awful lot higher than they were at the beginning of the year. So, I think that that is really the factor that we should be looking at not the fact that we have had good news coming because some of these very high tariff levels have been reduced. Live Events So, what should one do, I mean that is the most important question whatever we are discussing is well known? It is a strategy what you adopt at an all-time high which essentially will differentiate the portfolio return. If you sell now, well you miss on the uptick. If you do not sell now, well, you regret because this market already is looking bloated. Richard Harris: Well, what is basically happening is that there is a big delay in numbers. The big factor that has confounded economists, of course, is how is it that we have seen the economy stay fairly strong despite all these potential features of bad news coming around. Well, a lot of the bad news has not hit yet. Higher tariffs have not necessarily hit. Issues with the deficit have not necessarily hit. But generally, the bad news has not really hit yet, that is further down the line and it is going to be the same with the big beautiful bill. The tax cuts are going to happen soon. The benefit cuts are going to happen later and over time. So, initially, the markets will still stay pretty buoyant because they would not have an awful lot of reason to sell off. So, if you have to, let us say, punch in one trade, only one trade, you allowed only one for rest of the year, what will that trade be? Richard Harris: I think equities, maybe less weighted, less highly weighted than they have been previously, but equities will still continue because bull markets die hard.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store