‘Boeing 787 software glitch led to AI plane crash’, claims US aviation attorney

The ongoing investigation into the fatal Air India Flight AI-171 Boeing 787 crash in Ahmedabad is focusing on a suspected software-triggered engine thrust rollback, according to former US DOT Inspector General Mary Schiavo. Schiavo suggests the Full Authority Digital Engine Control (FADEC) system may have erroneously reduced power mid-flight, citing similar previously documented software flaws in 787s and drawing parallels to Boeing's 737 MAX issues. This raises significant concerns regarding the widespread application of prior corrective actions across the 787 fleet and underscores potential further regulatory scrutiny and financial implications for Boeing.

Analysis

The fatal crash of Air India Flight AI-171 is generating significant negative sentiment for Boeing, with an expert attributing the incident to a potential software-triggered dual-engine thrust rollback on the 787 Dreamliner. The specific system under scrutiny is the Full Authority Digital Engine Control (FADEC), which may have erroneously reduced engine power. Critically, this is being framed not as a new, unknown issue, but as a previously documented software flaw. Parallels are being drawn to a 2019 Japan Air Nippon Airways incident that led to a mandated NTSB corrective action, raising severe questions about whether these fixes were uniformly applied across the 787 fleet. This narrative directly echoes the 737 MAX MCAS crisis, suggesting a potential systemic failure in Boeing's safety culture and software verification processes, which elevates the risk of intense regulatory probes, significant legal liabilities, and lasting reputational damage.

Key Decisions for Investors

• Investors should treat this as a material event for Boeing (BA), as it echoes the 737 MAX crisis and could signal systemic issues in the company's safety and software engineering protocols, leading to heightened stock volatility and downside risk.
• Monitor the investigation by India's DGCA closely; confirmation of the FADEC software flaw and, more importantly, any failure to implement previously mandated NTSB fixes would be a major negative catalyst.
• Consider the potential for broader industry impact, including regulatory scrutiny or mandatory inspections across the entire Boeing 787 fleet, which could disrupt airline operations and impact suppliers.