Boeing Stock Climbs Despite Evidence of Possible Dual Engine Failure in Air India Crash

Aerospace stock Boeing (BA) climbed about 1% in Wednesday’s trading session, even as unsettling new details emerged from the investigation into last month’s Air India Flight 171 disaster.

The fatal crash, which took place on June 12 shortly after takeoff from Ahmedabad, claimed 241 lives and marked the first deadly hull loss of the Boeing 787 Dreamliner. This model has served as a workhorse for international airlines since its introduction.

Despite the gravity of the situation and the ongoing scrutiny from aviation authorities, investors appear to be taking the news in stride. Boeing shares have remained resilient, brushing off growing concerns that a catastrophic dual-engine failure may have played a role in the tragedy.

Simulations Point Toward Technical Fault

As reported by Bloomberg, investigators have been relying heavily on simulator exercises to shed light on the cause of the crash. Pilots have reenacted the final minutes of Air India Flight AI 171, experimenting with different flight settings, such as lowering the landing gear and retracting the wing flaps, to assess whether human error or atypical configurations might account for the rapid descent. Yet, none of these simulated scenarios replicated the aircraft’s sudden loss of altitude, further fueling the theory that a technical fault was the underlying factor.

The investigation, led by India’s Aircraft Accident Investigation Bureau (AAIB) along with Boeing and the US National Transportation Safety Board (NTSB), is now paying closer attention to the rare but serious scenario of both engines failing at almost the same time. The Boeing 787, which had General Electric engines, appeared to have trouble gaining altitude right after takeoff, according to early findings and security camera footage reviewed by investigators.

Black Box Data Under Review

Key to unraveling the cause of the disaster is data retrieved from the aircraft’s flight recorders, or “black boxes.” Authorities have yet to release an official readout, but initial information suggests the plane’s landing gear was in the process of retracting at the time of the crash. Oddly, the doors covering the gear had not opened, which pilots indicate could result from a hydraulic or electrical failure – both systems that depend on engine function.

Further raising alarms, a Ram Air Turbine (RAT), a small emergency fan that automatically deploys when the aircraft loses electrical power, was found to have been activated before impact. While the RAT is critical for maintaining basic flight controls in an emergency, it cannot provide thrust or keep the plane aloft. This detail points to a severe loss of power, consistent with a possible dual-engine failure.

Investigators noted that there was just a 15-second gap between the crew’s Mayday distress call and the moment of impact. During this brief interval, the crew would have had limited options as they attempted to regain control. Analysis of the wreckage further indicated that the aircraft’s wing flaps and slats were deployed correctly, suggesting the pilots acted in line with standard takeoff procedures.

The Dreamliner’s otherwise strong safety record is now under intense scrutiny. While this is the first fatal crash involving the 787, the probe’s focus on technical and systems failures has led some aviation experts to warn that the findings could have implications for similar aircraft in operation worldwide.

Should You Bet on Boeing Stock Right Now?

For now, Boeing’s stock performance stands in stark contrast to the troubling headlines. Investors seem to be betting that the ultimate cause may prove to be a rare, isolated event, or that any technical flaws can be promptly addressed through regulatory action and engineering fixes.

Still, as the investigation continues, all eyes remain on the AAIB’s final report and Boeing’s response. Should definitive evidence of a systemic technical issue emerge, the fallout for Boeing could be significant, both financially and reputationally.

Despite the uncertainty, Boeing stock still enjoys a Strong Buy consensus among analysts, with 17 recommending a Buy, 2 advising Hold, and only 1 suggesting a Sell. The average price target sits at $224.56, implying a ~6% upside from current levels. (See Boeing stock forecast)

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