The news of Air India’s Dreamliner aircraft VT-ANB’s crash in Ahmedabad made not only the passengers and the aviation industry, but also the entire stock market in deep concern. Soon after this high profile aircraft accident, there was a major decline in shares of companies associated with the aviation sector, creating an atmosphere of fear and uncertainty among investors.
Indigo and SpiceJet shares decline
Due to the effect of Air India accident, the first impact on Indigo and SpiceJet shares.
- IndiGo’s stock fell at ₹ 187, or 3.32% on Tuesday at ₹ 5,444.
- SpiceJet’s stock also fell ₹ 0.81, or 1.78% to ₹ 44.68.
It is clear from these figures that the trust of investors has been shaken in the aviation sector, especially when questions are being raised about security.
Air India: Boeing’s shares also fall drastically
The company whose aircraft crashed, ie Boeing, its shares (Air India) could not escape this accident.
- Boeing’s shares fell 6.42% to $ 196.51 in pre-market trading.
- On Wednesday, Boeing’s stock fell 0.80% to close at $ 214.
This decline reflects the concern of global investors, as there have been questions about security on Boeing earlier.
Indirect impact on Tata Group
The Parent Company of Air India is not listed in the Tata Group stock market, but the impact of this incident was clearly visible on other Tata companies and companies associated with the aviation sector. Market analysts believe that this high profile crash has shook the confidence of investors, which has increased pressure on aviation stocks.
Air India: Aviation Regulation and Operational Cost increase possible
After the accident, Aviation Regulatory Body DGCA has started investigation. After this, there is a possibility of more tough monitoring about safety standards. According to experts, this can lead to an increase in the operation of airlines, which will affect the profits of the companies. The market has already realized it, which is why the shares have seen a sharp decline.
Is the airlines compromise on security?
The biggest question after the Air India accident is whether the airlines are compromising safety standards in a rapid expansion race? Experts believe that such incidents question the functioning of the aviation industry and have a direct impact on the shareholder sentiment.
Currently, DGCA’s investigation report and detailed information of Air India are waiting, but one thing is clear – security is the biggest investment in the aviation sector, and its unseen companies pay a huge price in the stock market.
