WASHINGTON (Reuters) – The U.S. Federal Aviation Administration (FAA) said on Monday it is moving to rewrite testing rules to allow for the eventual return of civil supersonic air travel.
At an event in Paris on Monday, Acting FAA Administrator Dan Elwell said the agency is working to “enable the return of civil supersonic travel, while ensuring the environmental impacts are understood and properly addressed.”
Later this week, the FAA will issue a proposed rule for “special flight authorization for supersonic aircraft,” Elwell said. This is the first step toward revising the FAA’s 45-year-old rules governing supersonic transport.
U.S. startups Aerion, Boom Supersonic and Spike Aerospace are working to reintroduce supersonic passenger travel for the first time since the Anglo-French Concorde retired in 2003.
The rule “modifies and clarifies existing regulatory procedures for a more efficient way to obtain FAA approval to test supersonic aircraft.”
The rule “will provide a streamlined, clear line of sight on how to gain approval to conduct flight testing. This is a necessary, key step for further research and development in an emerging segment – and ultimately bring their aircraft to market,” Elwell added in remarks provided by the FAA.
According to a draft of the FAA proposal reviewed by Reuters, the agency said the proposed updates “are intended to support the growth of the civil supersonic industry” and will “provide increased clarity and information to applications as to the requirements for special flight authorizations to test supersonic aircraft.”
In February, Boeing Co said it had made a significant investment in supersonic business jet developer Aerion, as the world’s biggest planemaker looks to tap into rising demand for high-end aircraft that can reduce travel time.
Boeing will provide engineering, manufacturing and flight testing services for Aerion’s $120 million supersonic business jet, which is slated for its first flight in 2023.
Congress last year approved legislation directing the FAA to issue proposed rules setting noise standards for landing and takeoff, and noise test requirements for civil supersonic aircraft by March 2020, and modernizing the application process by December 2019.
Next generation supersonic jets, while quieter and more fuel efficient than the Concorde, have difficulty meeting existing noise levels and carbon emissions standards for conventional planes due to engine constraints and higher fuel burn.
(Reporting by David Shepardson; Editing by Bill Berkrot)
LE BOURGET, France June 17 (Reuters) – Boeing Co said on Monday it would supply parts for A320 jetliners made by its competitor Airbus to supply British Airways, the first such agreement by the U.S. planemaker to support an Airbus aircraft.
Under the agreement announced at the Paris Airshow, Boeing will manage and maintain a global exchange inventory of parts for Airbus’ A320 and A320neo single-aisle aircraft.
The deal reflects a push by the world’s largest planemaker into the higher-margin services business that includes aircraft parts and analytics, which Chief Executive Officer Dennis Muilenburg aims to grow to $50 billion in revenue in a decade.
“We were happy to put our hat in the ring and give a choice to British Airways,” Boeing Global Services Chief Executive Stan Deal told reporters.
British Airways also signed a deal for three landing gear exchanges for its 777 widebody fleet, Boeing said.
Separately on Monday, Boeing signed an agreement through its subsidiary Jeppesen to provide United Airlines with analytics services to help the carrier optimize crew planning operations through its entire fleet.
(Reporting by Eric M. Johnson and Tim Hepher; Editing by Alexander Smith and Mark Potter)
June 14 (Reuters) – Boeing Co on Friday said it would buy aerospace interiors company EnCore Group, the planemaker’s second foray into aircraft seats after it partnered with auto seats maker Adient last year.
The deal could help cut delays in the supply chain and improve profit margins for the planemaker, and is expected to close by the end of the second quarter of 2019.
California-based EnCore designs, certifies and produces airplane galleys and seats for airlines, and also supplies components to Boeing.
Last year, the planemaker moved into making aircraft seats with a joint venture with car seating leader Adient to reduce costly delays to deliveries.
Traditionally, aircraft seat makers sell seats to airlines, a process that can involve multiple customized designs and regulatory approvals and in turn lead to industrial delays.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli)
DUBAI (Reuters) – Oman Air CEO Abdulaziz Al Raisi plans to hold talks with Airbus if Boeing does not provide a support and recovery plan for its grounded 737 MAX planes before June 17, a statement by the Omani company said on Friday.
“The grounding of the 737 MAXs has had a major financial impact on Oman Air,” the statement cited Raisi as saying.
“The airline’s expansion plans for 2019 had been significantly curtailed” and Oman Air “also suffered revenue losses and market share declines,” he added.
The Oman Air CEO said Boeing ”promised a recovery and support plan for Oman Air that would be submitted to the airline before the upcoming Paris Airshow starting on 17th June 2019.”
“If I don’t hear back from Boeing before I arrive at Le Bourget Airport, then I will have to go ahead with my planned business lunch with Airbus at the airshow,” the Oman Air statement cited Raisi as saying.
(Reporting by Alex Cornwell; writing by Maher Chmaytelli. Editing by Jane Merriman)
FILE PHOTO: Bjoern Kjos, CEO of Norwegian Air Shuttle ASA, attends a press conference presenting quarterly report of the company, in Oslo
PARIS (Reuters) – Norwegian Air expects Boeing’s 737 MAX aircraft to remain grounded until at least the end of August, missing the European summer season, CEO Bjoern Kjos said on Friday.
“If you ask Boeing they still say June or July,” Kjos said at the Paris Air Forum. “But we’re already in mid-June – we’ve planned for the MAX to be out until the end of August.”
More than 300 Boeing 737 MAX jets have been grounded worldwide after two fatal crashes in Ethiopia and Indonesia killed nearly 350 people. Some airlines now expect the plane to remain out of action until the end of 2019.
Norwegian, which operated 18 of the planes, has said the grounding will raise its costs by up to 500 million Norwegian crowns ($58 million). The low-cost, long-haul operator has delayed disposal of older Boeing 737 models or prolonged leasing contracts while it waits for their MAX replacements.
Boeing is awaiting a decisions by the U.S. Federal Aviation Administration on software improvements it proposed after the crashes and whether to require additional pilot training before flights can resume.
If more training is ordered, a shortage of simulators means that “it might be much longer” before commercial flights resume, Kjos said. “For some operators it could take up to a year.”
As a customer of Boeing’s GoldCare maintenance program, however, the CEO said Norwegian might not have to wait that long.
“We’d hope to be at the front of the queue,” he said.
(Reporting by Laurence Frost and Tim Hepher; Editing by David Goodman)
Southwest Airlines continues to await guidance from Boeing and the Federal Aviation Administration (FAA) on the impending 737 MAX software enhancements and training requirements. We are encouraged by the reported progress and proposed path forward for returning the aircraft to service, and we remain confident that, once certified by the FAA, the enhancements will support the safe operation of the MAX.
In April, we revised our flight schedule by removing the MAX through Aug. 5 to offer reliability to our operation and stability for our Customers during the busy summer travel months. With the timing of the MAX’s return-to-service still uncertain, we are again revising our plans to remove the MAX from our schedule through Sept. 2.
By proactively removing the MAX from scheduled service, we can reduce last-minute flight cancellations and unexpected disruptions to our Customers’ travel plans. We will proactively contact all Customers whose itineraries will be impacted by the revision to offer them maximum flexibility and re-accommodate them well in advance of their travel date. The revision will proactively remove roughly 100 daily flights from our schedule out of our total peak-day schedule of more than 4,000 daily flights.
We offer our apologies to our Customers impacted by this change, and we thank them for their continued patience.
PARIS (Reuters) – Saudi Arabian Airlines is close to placing a multi-billion-dollar order for aircraft at least partly involving Airbus jets, people familiar with the matter said on Wednesday.
The carrier, known as Saudia, has been negotiating with both Airbus and Boeing for wide-body jets for months and its chief executive told Air Transport World in March that a decision for planes like the Airbus A350 or Boeing 787 was expected soon.
The order for wide-body aircraft, which could also include a number of smaller A320-family narrow-body aircraft, may be announced at the Paris Airshow, the people said.
Airbus declined comment.
Saudia Arabian Airlines did not immediately respond to a request for comment.
Airbus and Boeing are battling for wide-body aircraft orders worth well over $10 billion as the clock ticks towards next week’s Paris Airshow, industry sources said on Tuesday.
(Reporting by Tim Hepher, Alexander Cornwell; Editing by Sudip Kar-Gupta)
FILE PHOTO: An aerial photo shows Boeing 737 MAX airplanes parked on the tarmac at the Boeing Factory in Renton, Washington
(Reuters) – Boeing Co said on Tuesday it handed over 56% fewer airplanes in May, compared with a year earlier, as deliveries of its top-selling 737 MAX jet remained suspended following a deadly crash in March.
Total deliveries fell to 30 planes, compared with 68 in 2018. Net orders for the first five months remained in negative territory, with a total of minus 125 net orders.
The company has been facing its worst ever crisis after an Ethiopian Airlines’ 737 MAX plane crashed, killing all 157 people on board, in the second fatal accident involving the jet in just five months.
Boeing reiterated on Sunday it was working with global regulators to certify a software update for the jet as well as related training and education material to safely return the plane to service.
Global airlines that had rushed to buy the fuel-efficient, longer-range aircraft have since canceled flights and scrambled to cover routes that were previously flown by the MAX.
European rival Airbus SE delivered 81 aircraft in May, up 59% from last year and 313 in the January-May period, a rise of 40%.
Boeing shares were down 0.6% at $351.44 in morning trade.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D’Silva)
American Airlines remains confident that impending software updates
to the Boeing 737 MAX, along with the new training elements Boeing is
developing in coordination with our union partners, will lead to
recertification of the aircraft soon. We have been in continuous contact
with the Federal Aviation Administration (FAA), Department of
Transportation (DOT), National Transportation Safety Board (NTSB) and
other regulatory authorities, and we are pleased with the progress to
date.
In April, American extended cancellations for the MAX through Aug.
19. We are now extending those cancellations through Sept. 3. By
extending the cancellations, our customers and team members can more
reliably plan their upcoming travel on American. In total, approximately
115 flights per day will be canceled through Sept. 3.
Our Reservations and Sales teams will continue to work closely with customers who are impacted by these cancellations.
Frequently asked questions
Question: My flight was previously scheduled on a MAX. Will it be canceled? Answer:
Not all flights that were previously scheduled on a MAX will be
canceled, as we plan to substitute other aircraft types. In total,
approximately 115 flights will be canceled per day.
Question: My flight wasn’t scheduled to be on a MAX. Why has it been canceled? Answer:
A flight that was not scheduled as a MAX flight might be canceled to
enable our team to cover a MAX route with a different aircraft. Our goal
is to minimize the impact to the smallest number of customers.
Question: How will customers know if they are impacted? Answer:
American’s Reservations team will contact affected customers directly
by email or telephone. Customers who booked through a travel agent will
be contacted by their agency directly.
Question: My flight was canceled and I don’t want to rebook. Can I get a refund? Answer: Yes. If a flight is canceled and a customer chooses to not be rebooked, they may request a full refund by visiting aa.com/refunds.
United Technologies, Raytheon to create $120 billion aerospace and defence giant
(Reuters) – United Technologies Corp agreed on Sunday to combine its aerospace business with U.S. contractor Raytheon Co and create a new company worth about $121 billion, in what would be the sector’s biggest ever merger.
The deal would reshape the competitive landscape by forming a conglomerate which spans commercial aviation and defense procurement. United Technologies provides primarily commercial plane makers with electronics, communications and other equipment, whereas Raytheon mainly supplies the U.S. government with military aircraft and missile equipment.
While United Technologies and Raytheon have some common customers, their business overlap is limited, an argument the companies plan to make once U.S. antitrust regulators start scrutinizing the merger.
However, the two major commercial aircraft makers, Boeing Co and Airbus SE, as well as the Pentagon, have been known to use their significant purchasing power to seek concessions from their suppliers and may not welcome a potential lessening in competition among them.
When United Technologies rebuffed an acquisition offer from Honeywell International Inc in 2016, United Technologies chief executive Greg Hayes justified the decision partly by predicting that Boeing and Airbus would never accept having a supplier that would “build the plane from tip to tail.”
United Technologies has said it is on track to separate its Carrier air conditioning and Otis elevator businesses, leaving the company focused on its aerospace business through its $23 billion acquisition of Rockwell Collins, which was completed in 2018, and the Pratt & Whitney engines business.
Chinese authorities scrutinized the acquisition of airplane parts maker Rockwell Collins closely, given the companies’ footprint in that country’s market. This resulted in the deal closing in November 2018, as opposed to the targeted third quarter.
Trade tensions between the United States and China were blamed at least partly by analysts for that delay, but a source close to the deal said the companies did not expect this to be repeated because Raytheon does not do business in China.
Under the deal announced on Sunday, Raytheon shareholders will receive 2.3348 shares in the combined company for each Raytheon share. The merger is expected to result in more than $1 billion in cost synergies by the end of the fourth year, the companies said.
United Technologies shareholders will own about 57% of the combined business, called Raytheon Technologies Corporation, which will be led by Hayes. Raytheon shareholders will own the remaining stake, and Raytheon CEO Tom Kennedy will be named executive chairman. The companies negotiated the terms over several months, according to the source, who requested anonymity discussing the confidential deliberations.
The deal has been structured so that no shareholder of either company will receive a premium. United Technologies and Raytheon have market capitalizations of $114 billion and $52 billion, respectively.
The deal is expected to close in the first half of 2020.
The newly created company is expected to return between $18 billion and $20 billion of capital to shareholders in the first three years after the deal’s completion, the companies said. The new company will also assume about $26 billion in net debt, they added.
DEFENSE SPENDING RISE
Raytheon, maker of the Tomahawk and the Patriot missile systems, and other U.S. military contractors are expected to benefit from strong global demand for fighter jets and munitions as well as higher U.S. defense spending in fiscal 2020, much of it driven by U.S. President Donald Trump’s administration.
However, Pentagon spending is projected to slow down after an initial boost under Trump. A deal with United Technologies would allow Raytheon to expand into commercial aviation.
Conversely, United Technologies could benefit from reducing its exposure to commercial aerospace clients amid concerns that the rise of international trade protectionism will suppress economic growth and weigh on the flow of goods through air traffic.
The International Air Transport Association, which represents about 290 carriers accounting for more than 80% of global air traffic, cited these concerns earlier this month, when it said the industry is expected to post a $28 billion profit in 2019, down from a December forecast of $35.5 billion.
The deal with Raytheon could put pressure on General Electric Co, which competes with United Technologies for commercial aerospace clients, to seek scale. It could also push other defense contractors, such as Lockheed Martin Corp, to explore expanding their commercial businesses.
Last year, military communication equipment providers Harris Corp and L3 Technologies Inc announced an all-stock merger that, once completed, will create the sixth-largest U.S. defence contractor.
Morgan Stanley, Evercore Inc and Goldman Sachs Group Inc were financial advisers to United Technologies, while Wachtell, Lipton, Rosen & Katz was its legal adviser. Citigroup Inc was financial adviser to Raytheon, and RBC Capital Markets LLC provided a fairness opinion. Shearman & Sterling LLP was legal adviser to Raytheon.
(Reporting by Harry Brumpton and Kate Duguid in New York; Additional reporting by Mike Stone in Washington and Rama Venkat in Bengaluru; Editing by Richard Chang and Rosalba O’Brien)
