Air India Plane – a Boeing 787 -- Crashes, Nvidia CEO on Chip Restrictions, Chime CEO “First on CNBC” 6/12/25

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Jim Cramer (0:59)

It's Jim Cramer here. You're listening to the opening bell of CNBC Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (1:07)

Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with David Faber and Sara Eisen at post night at the New York Stock Exchange. Cramer has the warning off. Pre-market does indicate a lower open after three days of gains. Got another soft inflation print. Jobless claims grind a little higher. Some geopolitics at work as well regarding the Middle East and Iran. Dollar new 52 week low and the euro soars. Let's begin though with the tragic news from overseas. An Air India plane bound for London has crashed into a residential neighborhood shortly after takeoff from an airport in the western India city of Ahmedabad. Aircraft was a Boeing 787 Dreamliner. The spokesperson for the airline tells NBC News the jet was carrying 242 people, including 12 crew members, shares a Boeing down sharply on the news of the crash. Although, as Joe said, guys, at this stage of any kind of aviation disaster, you really are blind to details and news. Although there are a fair amount of pictures and video of the crash where obviously there were some residents of the neighborhood who were likely killed.

David Faber (2:07)

Yeah, I mean, the crash site would seem to indicate that watching firefighters, for example, being putting out fires in a residential building. Yeah, we don't, listen, you don't know, but it is reminiscent of other tragedies. And Boeing really only at the end of dealing with many of those that occurred. So we'll just have to wait and see. There's no real answers at all at this point, only questions.

Sara Eisen (2:31)

Right. And so this is the worst accident for this type of plane, right? This is the most advanced widebody airliner. And yeah, it's reminiscent of 2018-2019, which was when the Boeing fatal crashes, where it was more on their shoulders and they're still sort of dealing with the damage and the fallout. I guess the question, which we don't know, and we've repeatedly said that, is this an isolated incident or was there some bigger problem with the aircraft or with the engine, which is made by GE, which whose shares are also a little bit lower in the pre-market.

David Faber (3:00)

Or is it pilot error, which is always a possibility?

Sara Eisen (3:03)

You don't know. And no reports, I don't think, of survivors as yet. But we'll obviously monitor that and are thinking of them.

Carl Quintanilla (3:10)

There have been some reports of a Mayday call upon takeoff. Phil LeBeau has been able to confirm that for now. Street hasn't really had much of a reaction in terms of research, although Morgan Stanley this morning does write, in our view, this event derails the positive momentum on Boeing's stock. And we expect the news to be negatively received. At this time, they remain equal weight with a price target of 200 Let's get to Phil LeBeau with more on what we know at this early stage. Morning, Phil.

Phil LeBeau (3:39)

Hi, Carl. You know, as you guys mentioned, there are more questions than answers. The weather was clear by all indications based on the video that we've seen. So it really does come down to a couple of things. Was it a mechanical issue with the plane? Was it a mechanical or software issue with the plane and or the engines? Was it pilot air? Those are all things that investigators will be focused on. The Dreamliner, as well as the engines that powered this aircraft, they both have stellar track records. Yes, there were problems with the Dreamliner early on, when it was first being developed and it was first entering into service. After that, it's had a very good track record. There have been occasional incidents where people have seen problems when it's lost altitude and it has brought questions up about the reliability of the manufacturing. But none of that has ever been born out with proof that there's a problem with the Dreamliner. As for the engines, which are made by GE Aerospace, they have a great track record. The GE NX-1B engine has been, it was essentially designed for the Dreamliner. It has a strong track record. So with that in mind, investigators will get the cockpit data recorder, the voice recorder, those will give the biggest pieces of information that will immediately be able to say to investigators, okay, we think this is one of the primary causes for the accident. In the meantime, for investors, you know that when there is an accident, shares of the aircraft maker or the engine maker, they always sell off. Adding to that this time is the fact that both GE and Boeing have seen their shares really increase over the last year. And there's already been talk about perhaps a bit of a pullback is due for those stocks. So that may be contributing to a bit of the sell off today. Again, guys, we should get more answers in the weeks to come. I don't expect them to get the cockpit data recorder and voice recorder within the next 24 hours. And even if they do, it's going to take some time to analyze it. It's going to be some time before we get some indication of what happened with this plane crashing shortly after takeoff.