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HomeMarket NewsBoeing shares tank 8% in pre-market trading after Ahmedabad air crash
Reports also indicate that the KLM Royal Dutch Airlines, had grounded seven Boeing 787 aircraft, after having identified improper maintenance procedures in May this year, leading to cancellation of multiple fights.
Shares of aircraft manufacturer Boeing fell as much as 8% in pre-market trading on Thursday, June 12, after an aviation disaster in Ahmedabad earlier this afternoon.
A Boeing 787 Dreamliner, part of Air India, bound to London from Ahmedabad, crashed within minutes after take-off. The flight had 242 passengers on board.
"We are aware of initial reports and are working to gather more information," Boeing said in its initial statement.
Boeing is an important constituent on the Dow Jones Industrial Average Index, with a 3.09% weightage. The fall in Boeing in pre-market trading, is also weighing on the Dow futures, which are down 300 points.
Back in 2013, just the second year after the Boeing 787 Dreamliner was introduced into service, several aircraft encountered electrical system problems. The US Federal Aviation Administration (FAA), after a few incidents involving commercial flights, grounded the entire 787 fleet, marking the first such grounding after the McDonnell Douglas DC-10 in 1979.
Reports also indicate that the KLM Royal Dutch Airlines, had grounded seven Boeing 787 aircraft, after having identified improper maintenance procedures in May this year, leading to cancellation of multiple fights.
Boeing also suffered from grounding of its 737 MAX Aircraft between March 2019 and December 2020. The 737 MAX resumed flying in India in November 2021.
Shares of Boeing are down 7.3% in pre-market trading at $198.3.
