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Boeing’s Air India tragedy complicates the company’s path as it seeks 737 Max settlement approval


The cause of Thursday’s devastating crash of an Air India Boeing 787 Dreamliner is not yet known, but it could complicate the jet maker’s path forward as it tries to finalize an agreement with the US government over two other crashes that happened in the past decade.

The aircraft operating from Ahmedabad to London Gatwick was involved in an accident within minutes after takeoff. The number of injured or deceased passengers is unknown. The aircraft was carrying 230 passengers and 12 crew members, according to Air India CEO Campbell Wilson.

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“Investigations will take time,” Wilson said.

Boeing said Thursday that it is prepared to support Air India. The company’s stock dropped 5%.

“We are in contact with Air India regarding Flight 171 and stand ready to support them. Our thoughts are with the passengers, crew, first responders and all affected,” a spokesperson for Boeing told Yahoo Finance.

In international aircraft incidents involving a US-manufactured aircraft, the government of the country where the incident took place leads the investigation.

In the event the Indian government requests assistance from US authorities, the US National Transportation Safety Bureau acts as the official US representative, and the US Federal Aviation Administration provides technical support.

“We stand ready to launch a team immediately in coordination with the NTSB,” an FAA spokesperson told Yahoo Finance, confirming that the FAA is in contact with the NTSB regarding Air India flight AI171. The NTSB posted on X saying it was leading a team of US investigators traveling to India to assist.

The rear of an Air India plane after it crashed in Ahmedabad, India, on June 12. (Central Industrial Security Force via X/Handout via Reuters)
The rear of an Air India plane after it crashed in Ahmedabad, India, on June 12. (Central Industrial Security Force via X/Handout via Reuters) · Reuters / Reuters

The crash is a major setback for the aerospace giant amid a massive turnaround effort under new CEO Kelly Ortberg following a brutal 2024 sparked by a “door plug” incident on an Alaska Airlines (ALK) flight.

A key element of that turnaround is a non-prosecution pact it struck with President Trump’s Justice Department last month that would let Boeing out of a criminal trial and guilty plea surrounding two fatal 737 Max 8 crashes that happened in 2018 and 2019.

That pact is still not quite complete because a federal judge has yet to sign off — a requirement for the parties to move forward.

Reed O’Connor, the federal judge presiding over the agreement and the DOJ’s criminal charges against Boeing, is waiting for the families of Max crash victims to file objections to the agreement due June 18.

He declined to approve a prior settlement agreement proposed by Boeing and the DOJ.

The Boeing logo at the company's factory in Renton, Wash. (AP Photo/Lindsey Wasson, File)
The Boeing logo at the company’s factory in Renton, Wash. (AP Photo/Lindsey Wasson, File) · ASSOCIATED PRESS

The settlement with Trump’s DOJ, which includes $1.1 billion in compensation for victims and fines, was a result that some family members of the crash victims didn’t want.





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