Boeing Stock Holds Steady as Investigators Zero In on Air India Crash Clues

Business Insider

a day ago

Aerospace stock Boeing (BA) remained steady today as the investigation into the crash of Air India Flight 171 continues. The Boeing 787-8 Dreamliner, operating a scheduled service from Ahmedabad to London, plunged to the ground just seconds after takeoff on June 12, killing all but one of the 242 people on board in what has become India's worst aviation disaster in decades. At least 30 people on the ground also lost their lives when the jet crashed into the BJ Medical College complex, barely two kilometers from the runway.
Don't Miss TipRanks' Half-Year Sale
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The 12-year-old Dreamliner had undergone a full 'C check' in 2023 and engine overhauls earlier this year. Despite that maintenance, the jet failed to gain proper altitude before crashing and bursting into flames just 32 seconds after departure.
Investigators are focusing on a range of potential causes, including a rare dual-engine failure. The aircraft's engines, built by General Electric and controlled by a Full Authority Digital Engine Control (FADEC) system, are designed to prevent precisely such catastrophic events. Investigators have also highlighted the deployment of the Ram Air Turbine (RAT) moments before the crash, which suggests a sudden electrical failure may have occurred. Though the RAT can provide emergency power, it cannot keep an aircraft in the air.
In simulator recreations of the doomed flight, pilots used the same takeoff configuration but were unable to replicate the loss of altitude. Experts are exploring whether a loss of hydraulic power, which depends on functioning engines, could have prevented the landing gear doors from opening properly, compounding the emergency.
India's Aircraft Accident Investigation Bureau (AAIB), supported by Boeing and the US National Transportation Safety Board, has recovered and begun analyzing data from the plane's Enhanced Airborne Flight Recorders, which store at least 88 flight parameters and 25 hours of cockpit voice recordings. These black boxes, designed to survive extreme forces, should help reconstruct the final moments.
Murlidhar Mohol, India's minister of state for civil aviation, confirmed that all possibilities – from fuel issues to electrical and hydraulic malfunctions – are under examination, along with the chance of sabotage. 'It has never happened that both engines have shut down together,' he remarked, noting that CCTV footage and other evidence are also being reviewed.
According to international guidelines, a preliminary report must be filed within 30 days of the accident. Sources say this report, expected by July 11, will run four to five pages and include key facts about the aircraft, crew, weather, and conditions at the time of the crash, along with early conclusions and recommendations for further investigation. A complete report is expected in about three months.
Should You Bet on Boeing Stock Right Now?
Wall Street remains firmly bullish on Boeing, with analysts collectively handing the stock a Strong Buy consensus rating. The breakdown includes 17 Buy recommendations, 2 Holds, and just a single Sell. With an average price target of $226.42, Boeing shares could gain another ~8% from current levels. (See Boeing stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.