Boeing 787’s emergency-power system likely active before Air India crash, WSJ reports

Investigators suspect the emergency-power generator (Ram Air Turbine) was operating on the Air India Boeing Dreamliner that crashed in Ahmedabad last week, according to a Wall Street Journal report. This preliminary finding raises questions about the proper functioning of the plane's GE Aerospace GEnx engines during takeoff, as the RAT system is designed to provide power and hydraulic pressure in case of engine failure. Despite the crash, India's aviation safety watchdog reported no major safety concerns after surveillance of Air India’s Boeing 787 fleet.

Analysis

Preliminary findings from the investigation into the Air India Boeing Dreamliner crash in Ahmedabad indicate the aircraft's emergency-power generator, the Ram Air Turbine (RAT), was operational at the time of the incident. This development, reported by the Wall Street Journal, raises significant questions regarding the proper functioning of the plane's GE Aerospace GEnx engines during takeoff, as the RAT system is designed to deploy when primary engine power is lost. The Boeing 787-8 Dreamliner, which tragically resulted in the loss of nearly all 242 passengers and approximately 30 ground fatalities, making it the worst aviation disaster in a decade, was equipped with these GEnx engines. This incident and the ensuing investigation carry strongly negative sentiment (-0.75) and a high market impact score (0.75), with specific negative sentiment scores for Boeing (BA: -0.8) and GE Aerospace (GE: -0.6). Contrasting these concerns, India's aviation safety watchdog recently stated that surveillance of Air India’s existing Boeing 787 fleet revealed no major safety concerns, introducing an element of uncertainty pending further details from the crash probe.

Key Decisions for Investors

• Investors should closely monitor the ongoing investigation into the Air India Boeing Dreamliner crash, as findings concerning GE Aerospace GEnx engine performance could significantly impact both Boeing (BA) and GE Aerospace (GE).
• Given the strongly negative sentiment (-0.75 overall, BA: -0.8, GE: -0.6) and high market impact score (0.75), investors should anticipate potential stock price volatility for BA and GE and consider reviewing their exposure to these equities.
• The preliminary report suggesting emergency power system activation, juxtaposed with the Indian aviation watchdog's statement of no major fleet-wide safety concerns post-surveillance, highlights uncertainty that warrants a cautious investment approach towards the involved companies until more definitive information from the probe emerges.