Boeing Company on defensive; stocks fall; CEO Kelly Ortberg cancels trip to Paris Air Show

NEW DELHI: The Ahmedabad plane crash has been a major setback for American company Boeing. There has been concern about the safety of its aircraft for days. The new CEO Kelly Ortberg has been trying to resolve this and regain credibility.

The company has about 300 new orders. The accident occurred while increasing the production of Boeing 737 aircraft. Ortberg has cancelled his trip to the Paris Air Show scheduled for next week. The focus will be on the investigation of the plane crash. The Boeing team will reach Ahmedabad.

Boeing is ranked 88th among the world's top 100 corporate brands in an Axios Harris poll survey. The company's stock value fell after the accident. The Dreamliner that crashed in Ahmedabad is 11 years old.

Repeated accidents

Boeing 737 crashes killed 346 people in 2018 and 2019. In 2018, a Boeing crashed shortly after takeoff in Indonesia, killing 189 people. In 2019, a similar crash in Ethiopia killed 157 people. This led to the grounding of 387 aircraft in the series for several years. In 2020, an investigation by the Federal Aviation Administration in the United States revealed defects in the Boeing 737 Max, including issues with its sensors. In January 2024, a plug in the door of an Alaska Airlines Boeing plane exploded during flight. CEO Dave Calhoun resigned.

Huge fines paid

1. $2.5 billion fine in January 2021 for withholding information from U.S. security agencies

2. $243.6 million in criminal monetary penalties for 2018 and 2019 plane crashes

3. $1.77 billion paid to families of passengers. $500 million to a fund set up for victims