In a single fiery instant over Ahmedabad, the confidence in civil aviation—India’s and the world’s—came crashing down with Air India’s ill-fated Dreamliner. The death roll of 142 plus about another 20 deaths on the crash site at the hospitalis tragic, but the fallout runs deeper. Investor panic, plunging Boeing shares, and over Rs 1,000 crore in insurance claims expose a volatile mix of corporate negligence, regulatory
failure, and a sector increasingly driven by cost-cutting rather than caution.
The Tata Group, which owns Air India, promptly announced a Rs 1 crore compensation per victim— a gesture as much about damage control as it is about accountability. Aviation analysts believe this move is less generosity and more recognition of the magnitude of the crisis—and the global scrutiny that now hovers over India’s civil aviation, the third largest in passenger volume and sixth in cargo worldwide. Apart international norms mandate such compensation.
Global Ripples
The impact has been swift and global. Boeing’s shares fell 8 percent just ahead of the Paris Air Show—an event where the company was expected to showcase its next-generation aircraft. CEO Kelly Ortberg cancelled his visit, as scrutiny mounted over Boeing’s safety record. Boeing’s key suppliers— Spirit AeroSystems (fuselage) and GE Aerospace (engines)—also took a 20 percent hit. Losses run into billions of dollars.
This crash has reignited a longstanding debate: is Boeing’s private-sector-driven model more vulnerable than Airbus, a European government-backed consortium? The Dreamliner, despite its reputation as a safe
aircraft, has faced repeated technical issues—chief among them, its lithium-ion battery system, which has caused electrical fires and aircraft groundings in the past.
These batteries, similar to those used in e-rickshaws around Delhi, are prone to thermal runaway: a condition where internal heat builds up uncontrollably, leading to fires, toxic gas release, and even explosions. Dreamliners have been grounded multiple times across the world—including by Japan Airlines—due to such issues.
The crash has led to circumspection and crashing share prices rattle investor confidence. Boeing shares dropped by 8 percent just days before the Paris Air Show, where the company is expected to showcase its
productions. Boeing CEO Kelly Ortberg has announced cancellation of his visit to the air show as the crash revived concerns of about Boeings widebody jets. Boeing’s supplier of 787 fuselage, Spirit Aerosystems; and engine – GE Aerospace have also suffered 20 percent losses. Total losses are estimated in billions of dollars though in percentage terms it might look small.
Boeing has paid $ 1.1 billion to avoid prosecution for its two 737 Max plane crashes in 2018-19. Boeing has been mired in controversies, ranging from 737 Max crashes to last year’s Starliner crash that stranded Sunita Williams and Butch Wilmore at the international space station (ISS). There are reports of Boeing
workers complaining about shoddy production, including a claim by whistleblower that the Dreamliner had structural flaws, said to be six tonnes heavier, than it should be. No Dreamliner had crashed before the Ahmedabad incident. Another whistleblower, a Boeing engineer warned in 2024 that all 787s should be grounded due to structural flaws. One who reportedly expressed concerns about substandard spares, was
later found dead under mysterious circumstances.
India’s Shrinking Airline Market
The Ahmedabad tragedy also highlights vulnerabilities in India’s aviation ecosystem, increasingly dominated by just two players— IndiGo and Tata group airlines (Air India and Vistara)—which together control nearly 90 percent of the market. This quasi-duopoly, despite Udaan and other regional airline schemes, limits competition and raises concerns over pricing, service quality, and most alarmingly, safety.
Flying is becoming costlier and more fragile. High aviation fuel costs in India—among the world’s highest—along with supply chain constraints have pushed airlines to cut corners. There are growing passenger complaints about air conditioning being kept off during boarding to save fuel. Some aircraft remain grounded for lack of spares—especially engines from Pratt & Whitney. As of this year, 133 aircraft across airlines of India or 16 percent of the fleet were grounded.
The Directorate General of Civil Aviation (DGCA) fined Akasa Air, Air India, and IndiGo for repeated safety violations. SpiceJet was ordered to halve its operations in 2022. The Bureau of Civil Aviation Security (BCAS) has also levied multiple penalties— for instance, Rs 30 lakh on Air India and over Rs1 crore in fines
on airport operators across Lucknow, Bhavnagar, Chennai, and Delhi for violating the 1937 Aircraft Rules. This year Mumbai airport was also penalised for ignoring safety.
Most recently, DGCA inspections of Turkish Airlines flights between May 29 and June 2, 2025, revealed alarming safety breaches— unauthorized ground personnel at Bengaluru, missing documentation for dangerous cargo, and unaccounted equipment at Hyderabad and Chennai airports.
Boeing-Airbus Divide
Statistically, Boeing appears to fare worse than Airbus on safety metrics in the U.S. Since 2014, Airbus aircraft have faced 10 technical malfunctions, but no fatal crashes. Boeing, in contrast, has reported 32 malfunctions and multiple fatal issues. While more Boeings are in operation, the frequency of groundings and incidents raises red flags.
Despite this, Tata Group has inked a massive deal for 500 Boeing aircraft to be delivered over the next decade—a stark contrast from earlier decades when India, through Indian Airlines and Air India, maintained a balance between Boeing and Airbus procurement under public ownership.
Aviation Losing Altitude on Safety?
Every time an aviation tragedy strikes, the default explanation tends to be “pilot or human error.” While human error is real, this narrative often absolves aircraft manufacturers and operators of deeper accountability. In the Ahmedabad case, it’s imperative that investigations go beyond the cockpit and scrutinize systemic safety lapses, fleet maintenance records, battery safety, and manufacturing standards.
The DGCA’s report on an earlier in-flight shutdown incident on a B- 787 (VT-ANW) in August 2023 is one of many warning signs. In November that year, the government admitted in the Rajya Sabha that 18 safety violations had been recorded across airlines, airports, and ground service providers in just three years.
The aviation sector—by design— cannot afford to operate on the edge. When corporate profit, regulatory apathy, and weak oversight intersect, the result is not just turbulence—it’s tragedy. The Ahmedabad crash is not just an accident; it is a wake-up call. India’s aviation authorities must seize this moment to launch a fullscale, independent safety audit of all domestic fleets. Because in the sky, there is no room for error, and
no margin for complacency.
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