Boeing shares tumble after Ahmedabad air crash

Boeing stock sank roughly 4% in early trading, quoting at nearly $204 a scrip on Thursday after an Air India plane carrying 242 people crashed shortly after takeoff near the Ahmedabad airport. Earlier, the stock dropped as much as 8% in pre-market trading.

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 of the Dow Jones Industrial Average Index, with a 3.09% weightage. The fall in Boeing in pre-market trading also weighed on the Dow futures, which was down 300 points.

In 2013, just two years after the Boeing 787 Dreamliner was introduced into service, several aircraft experienced 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 KLM Royal Dutch Airlines had grounded seven Boeing 787 aircraft after having identified improper maintenance procedures in May this year, leading to the cancellation of multiple flights.

Boeing also suffered from the grounding of its 737 MAX aircraft between March 2019 and December 2020. The 737 MAX resumed flying in India in November 2021.