FAA Defends Boeing Switches as South Korea Orders Safety Checks—But Investors Rally Despite Turbulence

The Federal Aviation Administration (FAA) has raised new concerns about Boeing aircraft following a devastating crash in India on 12 June that claimed 260 lives. In response, South Korea has ordered safety checks across its entire Boeing fleet, although the FAA maintains there is no immediate threat to public safety.

The incident, which occurred shortly after take-off near Patna, has prompted international aviation authorities to re-examine a specific aircraft component: the fuel control switches on the Boeing 787 Dreamliner. As the investigation unfolds, longstanding concerns about Boeing's maintenance and safety compliance are once again in the spotlight.

Fuel Switches May Have Caused Power Loss

India's Aircraft Accident Investigation Bureau (AAIB) revealed that the aircraft's fuel shutoff switches may have unintentionally moved from 'run' to 'cut-off' during take-off. This could have led to a sudden loss of power, potentially contributing to the crash.

Although Boeing issued a service bulletin in 2018 regarding this component, it remains unclear whether the aircraft involved had undergone the necessary updates. The lack of clarity has sparked criticism over compliance gaps and whether similar aircraft are still operating without the fix.

What steps has South Korea taken?

In a swift move, South Korea's Ministry of Land, Infrastructure and Transport instructed national carriers including Korean Air and Asiana Airlines to inspect all Boeing aircraft in their fleets. While no similar incidents have occurred domestically, officials stated the decision was made out of an abundance of caution.

These inspections extend beyond the 787 Dreamliner and cover various Boeing models. Seoul's action highlights a growing trend among aviation regulators to act preemptively rather than reactively.

FAA Maintains There Is No Immediate Risk

The FAA's Continued Airworthiness Notification, distributed via internal regulatory channels, stated that the fuel switch design does not pose an immediate hazard to continued airworthiness. No aircraft were grounded, and no mandatory repairs have been mandated—yet.

However, the agency indicated that it may revise its guidance depending on the final findings from the Indian investigation. Boeing has pledged full cooperation and is reportedly reviewing the switch mechanism as part of its internal quality checks.

Impact on Boeing Stock and Market Confidence

Despite the tragic crash, investor confidence in Boeing has remained relatively stable. After a brief dip in late June, Boeing's stock recovered and posted modest gains, buoyed by the FAA's measured response and lack of immediate regulatory action.

Still, uncertainty lingers. Industry analysts warn that a confirmed design flaw could trigger another wave of reputational damage for Boeing—still reeling from the aftermath of the 737 MAX crisis that grounded fleets worldwide in 2019 and 2020.

What Happens Next?

The AAIB continues its investigation with assistance from the U.S. National Transportation Safety Board (NTSB) and other international regulators. A final report is expected later this year and could influence future FAA directives.

In the meantime, other aviation authorities may follow South Korea's lead, launching their own inspections and calling on Boeing for greater transparency and proactive safety measures.

Boeing's Response and Global Implications

Boeing is now in damage control mode, working to reassure both regulators and the public. The company is reportedly re-evaluating its internal quality standards, supporting the ongoing investigations, and maintaining close communication with airline partners.

The FAA, for its part, has adopted a watchful stance, ready to take further action depending on the AAIB's findings.

Although no definitive mechanical fault has been confirmed, the global ripple effects of the India crash are already being felt. The tragedy is a stark reminder that in aviation, even the smallest oversight can lead to catastrophic consequences—and vigilance must remain a constant priority.