MUMBAI (Business Desk): Boeing shares nosedived 8% on July 12th – erasing $24B in market value – after a new Alaska Airlines 737 MAX incident reignited safety fears. The emergency landing of a jet missing an external panel amplifies pressure on CEO Dave Calhoun amid ongoing FAA scrutiny, rattling Indian investors holding BA stock and threatening Air India’s massive 220-aircraft order.
This fresh crisis jeopardizes Boeing’s fragile recovery, with critical FAA audits pending and airline confidence shaken. For India, stability at the planemaker is vital for Tata-owned Air India’s expansion plans.
Alaska Incident: Déjà Vu for MAX
[Photo: Alaska Airlines jet with missing panel]
The July 11th flight AS-1008 from Portland made an emergency return when passengers heard “explosive noise” at 16,000 ft. Initial findings reveal:
- Missing “Spirit Plug”: A 22×44-inch panel covering unused exit space blew out
- Same Supplier: Spirit AeroSystems – Boeing’s troubled partner in 2024 door plug incident
- FAA Investigation Launched: Demands Boeing’s “immediate action plan” within 10 days
“Unacceptable,” stated Alaska Airlines CEO Ben Minicucci, grounding all 65 MAX 9s for inspections.
Leadership Crisis Deepens
CEO Dave Calhoun faced Senate grilling just days before this incident:
- Whistleblower Claims: Senators cited evidence of “retaliation against safety inspectors”
- Production Cap Frozen: FAA maintains limit of 38 MAX/month through 2025
- Credibility Cratered: Calhoun’s $33M pay package drew bipartisan fury
Analysts now predict accelerated CEO succession talks.
Financial Turbulence Worsens
| Metric | Status | Impact |
|---|---|---|
| 2024 Stock Drop | -32% YTD | Worst performer in DJIA |
| Debt | $52B (S&P BB+ rating) | Downgrade risk high |
| Cash Burn | -$3.9B Q1 2024 | Dividend suspension likely |
| (Sources: NYSE, Boeing Earnings, S&P Global) |
India’s High-Stakes Exposure
- Air India Order: 190 MAX variants (20% of total $70B Boeing deal)
- Akasa Air Dependency: Operating 22 MAX jets with 150+ on order
- Supply Chain Risk: Tata Advanced Systems makes MAX components
“Delays beyond 2025 would force Tata to rethink fleet strategy,” warned CAPA India’s Kapil Kaul.
The Long Road to Recovery
Boeing’s survival hinges on:
- FAA Certification: Approving MAX 7/10 variants (currently delayed to 2026)
- Spirit Reintegration: $4.7B takeover to regain quality control
- Cultural Reset: Ending production shortcuts per Senate demands
The Verdict
With $16B in losses since 2019 and credibility shattered, Boeing faces a make-or-break 18 months. For Indian airlines and investors, the Alaska incident is a stark reminder: BA stock remains a high-risk bet until consistent safety performance returns.
Boeing stock crashes 8% after new MAX panel blowout. Air India order at risk as FAA tightens screws. CEO crisis deepens.