Airbus Trends After Boeing 787 Air India Plane Crash in Ahmedabad; Here’s Why

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.

Let’s take a deep dive to understand Boeing’s troubles, why Airbus is trending, and how Boeing and Airbus fare against each other in terms of financials, order book and other metrics.

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.

Airbus vs Boeing: Safety and Fatalities

In 2024, both Airbus and Boeing recorded fatal accidents, but Boeing continues to face sharper public scrutiny due to past issues and ongoing concerns. Here's a quick comparison:

Source: Boeing, Airbus Annual Reports

Despite having nearly similar fatal crashes and resulting fatalities last year, Boeing's higher scrutiny stems from the legacy of the 737 MAX crashes and whistleblower concerns related to the 787 Dreamliner's manufacturing quality.

Key Insights on Boeing vs Airbus Safety

• Boeing 737 has a higher fatal accident rate than Airbus A320, mainly due to older models in service. (Source: Kreindler & Kreindler, 2023)
• Data on 737 MAX vs A320neo is limited, as the MAX was grounded for years. (Source: Kreindler & Kreindler, 2023)
• Boeing 787 faced battery fire issues in 2013, leading to a global grounding. (Source: U.S. National Transportation Safety Board)
• Airbus A320/A321 maintain one of the industry’s lowest accident rates. (Source: International Air Transport Association)

Airbus in the Spotlight under Boeing’s Dark Cloud

As Boeing navigates its storm of challenges, its European rival, Airbus, has solidified its position in the industry. While the entire aerospace industry grapples with supply chain constraints, Airbus has managed to maintain a more stable production and delivery schedule, widening its lead over Boeing.

Here is a detailed comparison between Boeing & Airbus Financials, Order Book and Deliveries:

Sources: Boeing, Airbus Annual Reports, Flight Plan, Cirium, Flight Global, CAPA - Centre for Aviation

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.

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