Air India Crash Report: How Boeing And GE Stocks Reacted To Preliminary Findings - Details

The preliminary investigation report into the crash of Air India Flight AI171 was released this week, providing the first official account of what led to the June 12 disaster near Ahmedabad. The aircraft, a Boeing 787-8 powered by GE GEnx engines, crashed less than a minute after takeoff, killing all 241 people onboard and 29 people on the ground.

Despite the severity of the accident, Boeing and General Electric (GE) stocks remained stable and even rose slightly after the report became public.

Boeing And GE Stocks

Boeing’s stock closed at $226.84 on July 12, up 0.75 points or 0.33%, while GE’s stock ended at $255.42, gaining 2.85 points or 1.13%. The report was released after US stock market hours, which means the immediate trading reaction was limited to after-hours and the following day’s session.

One reason for the lack of a sharp decline is that the report did not directly assign blame to Boeing or GE, and it contained no immediate regulatory action.

What Report Said? 

The Aircraft Accident Investigation Bureau (AAIB) stated, “At this stage of investigation, there are no recommended actions to B787-8 and/or GE GEnx-1B engine operators and manufacturers.”

This sentence was important to investors because it confirmed that no grounding orders, design changes, or urgent safety directives had been issued. However, the report did point to a known issue with Boeing’s fuel control switch design.

It stated that both engine fuel cutoff switches moved from RUN to CUTOFF position seconds after takeoff, “The Engine 1 and Engine 2 fuel cutoff switches transitioned from RUN to CUTOFF position one after another with a time gap of 01 sec.”

The report linked this to a 2018 FAA advisory bulletin, which warned that the switch locking feature could disengage unexpectedly: “The FAA issued Special Airworthiness Information Bulletin… regarding the potential disengagement of the fuel control switch locking feature.”

The switches used in the Air India aircraft were the same type, but no mandatory inspection had been enforced.

The report stated, “As per the information from Air India, the suggested inspections were not carried out as the SAIB was advisory and not mandatory.”

Also Read: The Switch That Shouldn’t Fail: How a Known Flaw May Have Doomed AI-171

Engine Failure?

For GE, the report found no evidence of engine failure due to a mechanical defect. The engines shut down only because the switches cut off fuel flow. Investigators confirmed that thrust levers remained in the takeoff position until impact, meaning the engines were delivering full power before the fuel was cut.

Because no new design failure was identified, and no regulators required action against Boeing or GE, investors largely viewed the incident as an isolated event rather than a sign of broader risk to other aircraft. This contributed to the calm market response.

It is important to note that since the report was released after the US trading day ended, most trading activity and analysis happened the next day. Even then, the stocks stayed steady.

The investigation is still ongoing, and more findings could follow. The AAIB noted, “Investigation is continuing and the investigation team will review and examine additional evidence, records and information.”

For now, Boeing and GE have not faced any regulatory penalties or major financial impact, and their shares have remained resilient. Investors will be watching closely for the final report to see whether further conclusions or recommendations will affect the companies.