Boeing 787 Air India Crash Triggers Surge in Airbus Market Trends
The tragic crash of an Air India Boeing 787 Dreamliner in Ahmedabad, which killed 241 of the 242 people on board, has refocused global attention on The Boeing Company. The aviation giant is already grappling with a crisis of confidence, marked by safety lapses, whistleblower revelations, and intense regulatory scrutiny.
In 2024, the American aircraft manufacturing giant’s deliveries fell by a third compared to the previous year, and the company reported a staggering $11.8 billion annual net loss, underscoring the depth of its challenges. Boeing stock fell nearly 5% following the plane crash on June 12. This situation has inevitably drawn its primary competitor, Airbus, into the spotlight.
Why is Airbus trending after Boeing plane crash?
Airbus was wrongly dragged into controversy after Google’s AI Overview mistakenly claimed that the fatal Air India crash in Ahmedabad involved an Airbus A330. In reality, the aircraft was a Boeing 787-8 Dreamliner. A Reddit user flagged the error, and social media users slammed Google for showcasing flawed AI results, despite longstanding concerns over hallucinations. Google later removed the inaccurate summary and reaffirmed its commitment to maintaining high standards of accuracy.
Boeing’s Crisis: A Tipping Point for Safety and Trust
The year 2024 marked a major turning point for Boeing, triggered by a mid-air blowout of a door plug on an Alaska Airlines 737 MAX. While no fatalities occurred, the incident reignited longstanding concerns about Boeing’s production quality and safety culture, issues that have loomed large since the two deadly 737 MAX crashes in 2018 and 2019 that killed 346 people
FAA Crackdown on Boeing:-
In response to the Alaska Airlines incident, the U.S. Federal Aviation Administration (FAA) took swift action:
Grounded 171 Boeing 737-9 MAX aircraft
Froze 737 MAX production expansion
Increased on-site safety inspections at Boeing facilities
Conducted a six-week audit of Boeing and supplier Spirit AeroSystems
Found multiple violations of quality control standards (BBC)
Boeing Whistleblower Revelations:-
The crisis deepened with disturbing disclosures from whistleblowers:
Engineers alleged a culture that prioritized speed and profits over safety
Claims include improper fastening of fuselage sections on the 787 Dreamliner, raising long-term safety risks
Reports emerged of management ignoring concerns and retaliating against employees who spoke up
These developments have severely damaged Boeing’s reputation, and the recent Air India plane crash in Ahmedabad further raised critical questions about Boeing commitment to safety and accountability.
A Critical Juncture for Boeing And Airbus:-
Boeing is at a turning point. Its leadership has pledged major changes to improve safety and quality, submitting a detailed plan to the FAA. Key steps include better employee training, streamlined manufacturing, and a more open safety culture where staff can speak up without fear.
This crisis highlights a core truth for aviation: safety is non-negotiable. While Airbus holds a market edge, it too faces supply chain pressures. For now, both companies’ real success lies not in sales, but in earning and keeping the public’s trust in their aircraft.
Airbus’s Ascent: Strategy and Market Foresight:-
While Boeing faltered, Airbus executed a consistent strategy that allowed it to capitalize on its rival’s missteps and broader market trends.
Decades-Long Strategic Foundation: Airbus’s rise began as a European consortium challenging American dominance. Its strategy focused on creating families of aircraft (like the A320) with common cockpits and components, reducing training and maintenance costs for airlines—a key competitive advantage.
Capitalizing on Market Opportunities: Airbus adeptly seized opportunities, such as acquiring the Bombardier C-Series program to create the A220, thus strengthening its position in the small single-aisle market. Furthermore, Boeing’s 737 MAX grounding prompted several airlines, including Lion Air and flyadeal, to switch their orders to the Airbus A320neo family.
Confident Future Outlook: Airbus projects strong, sustained global growth, forecasting a demand for 43,420 new aircraft over the next 20 years. This optimism is rooted in solid drivers like economic expansion in Asia and a growing global middle class.