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

According to a Wall Street Journal report, investigators suspect the emergency-power generator (Ram Air Turbine) was active on the Air India Boeing 787 Dreamliner that crashed last week in India. This preliminary finding raises questions about the plane's engine functionality during takeoff, as the RAT system typically activates only when both engines fail; the Dreamliner was equipped with GE Aerospace's GEnx engines. While India's aviation safety watchdog found no major safety concerns in Air India's 787 fleet, the investigation into the crash continues.

Analysis

Preliminary findings from the investigation into the Air India Boeing 787 Dreamliner crash in Ahmedabad, as reported by the Wall Street Journal, indicate that the aircraft's emergency-power generator, the Ram Air Turbine (RAT), was likely operating at the time of the incident. The RAT system is designed to provide essential electricity and hydraulic pressure for flight control in the event of a dual engine failure. This development raises significant questions regarding the functionality of the plane's GE Aerospace GEnx engines during takeoff, as the Dreamliner began losing altitude seconds after departure. The crash resulted in the death of all but one of the 242 people on board and approximately 30 ground fatalities, marking it the world's worst aviation disaster in a decade. While Boeing has deferred comments to India's Aircraft Accident Investigation Bureau and GE Aerospace has not responded to inquiries, India's aviation safety watchdog had previously stated on Tuesday that surveillance of Air India's Boeing 787 fleet revealed no major safety concerns, creating a complex backdrop for the ongoing probe.

Key Decisions for Investors

• Investors should anticipate heightened scrutiny and potential stock volatility for Boeing (BA) and GE Aerospace (GE) following the preliminary report suggesting emergency power system activation, indicative of possible engine failure on the 787 Dreamliner.
• Closely monitor the official investigation by India's Aircraft Accident Investigation Bureau, as findings on the GEnx engine performance will be critical in assessing the financial and reputational impact on both BA and GE.
• The prior 'no major safety concerns' assessment by India's aviation watchdog for Air India's 787 fleet introduces uncertainty, underscoring the need for caution until the crash investigation yields definitive conclusions regarding the incident's cause.