Category: Boeing news (Page 27 of 47)

Boeing Invests in Services Provider Robotic Skies

June 4, 2019 / WIL BALDWIN

Startup manages maintenance, inspection and alteration services for global manufacturers and operators of commercial unmanned aircraft systems

Access to safe, reliable maintenance will support commercial operations and urban mobility efforts

CHICAGO, June 4, 2019 /PRNewswire/ — Boeing [NYSE: BA] today announced its investment in Robotic Skies, a services provider that connects manufacturers and operators of commercial unmanned aircraft systems (UAS) with a global network of more than 170 civil aviation authority-certified repair stations.

“With safety as a cornerstone, we are shaping a robust operational ecosystem for on-demand mobility that supports the future of aircraft, air vehicles and autonomous systems,” said Brian Schettler, managing director for Boeing HorizonX Ventures.

The investment is part of Boeing’s disciplined, long-term strategy of entering into value-added partnerships that enhance and accelerate growth and deliver key differentiators for customers.

“Unmanned and autonomous commercial aircraft operations are increasingly mirroring those in manned aviation, including the need for quality maintenance provided by certified technicians,” said Brad Hayden, founder and CEO of Robotic Skies. “This latest investment will allow us to continue to grow our global footprint and expand operational capabilities to support customers.”

Boeing HorizonX Ventures led this funding round with participation from Thayer Ventures, Sun Mountain Capital and KickStart Seed Fund. The investment builds on a previously-announced collaboration with Robotic Skies, Boeing Global Services and its subsidiaries Aviall and Jeppesen to provide enhanced commercial UAS services.

Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As the top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 150,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.

Robotic Skies is the only global network of certified UAS maintenance centers. It offers comprehensive turnkey field service programs designed to keep UAS flying safely, efficiently and affordably around the world. Founded in 2014, Robotic Skies has more than 170 certified repair stations across more than 40 countries, providing MRO and support services for commercial UAS. Each service center in the network possesses the aviation expertise and factory training to ensure the mission readiness of these aircraft. For more information about Robotic Skies, visit: http://www.roboticskies.com

Qantas Expects Final Proposals for Sydney-London Jet

June 3, 2019 / WIL BALDWIN

Airline could place an order for A350 or 777X by year end
21-hour flight would be the world’s longest
Qantas plans economy class section, including stretching zone (Adds details on aircraft configuration)

SEOUL, June 3 (Reuters) – Qantas Airways Ltd has asked Airbus SE and Boeing Co to present their “best and final offer” for planes capable of flying 21-hours non-stop from Sydney to London by August, the airline’s chief executive said on Monday.

“Hopefully by the end of the year … we will come to a conclusion one way or another,” Qantas CEO Alan Joyce told reporters on the sidelines of an airline industry conference in Seoul. “If the business case works we will put in an order.”

Qantas is aiming for the planes to be delivered from late 2022, with the first Sydney-London flights likely in 2023, he said. The route would be the world’s longest commercial flight and Qantas is examining A350 and 777X models.

The airline is in talks with pilots about changing a labour contract to increase productivity to help support the business case for an order, Joyce said.

Qantas plans to have four service classes on the airplane, including first, business, premium economy and economy, with a zone for economy and premium economy-class passengers to stretch and hydrate, he said.

Singapore Airlines Ltd has only business class and premium economy on the world’s current longest route, from Singapore to New York.

Joyce said Qantas’ success in selling around 90% of economy-class seats on its Perth-London flights showed there was demand for economy class on the even longer Sydney-London route.

“There still will be a large economy,” he said.

Qantas also planned other routes with the new jets such as Melbourne-London, Sydney-New York and possibly flights from the east coast of Australia to other cities in Europe, the U.S. east coast and Brazil, he said.

(Reporting by Jamie Freed; Editing by Stephen Coates)

CORRECTED – Azerbaijan Cancels $1 Billion Boeing Contract

June 3, 2019 / WIL BALDWIN

(Corrects “cancels” to “plans to postpone” in the first paragraph after AZAL changed its comment. Removes quote)

MOSCOW, June 3 (Reuters) – Azerbaijan airline AZAL plans to postpone a $1 billion contract with Boeing to purchase 10 737 MAX jets, a spokesman said on Monday, following fatal crashes involving the aircraft in Ethiopia and Indonesia.

Boeing’s top-selling aircraft, the 737 MAX, has been grounded worldwide since the March 10 disaster, which killed 157 people and came just five months after a Lion Air crash in Indonesia that killed 189 in a plane of the same model.

Many countries barred 737 Max jets from taking off or landing at local airports.

(Reporting by Nailia Bagirova; writing by Margarita Antidze)

Air New Zealand Confirms Order for Eight Boeing 787 Jets

May 28, 2019 / WIL BALDWIN

WELLINGTON (Reuters) – Air New Zealand Ltd said on Monday it has ordered eight Boeing Co 787-10 Dreamliner jets worth $2.7 billion (2.12 billion pounds) at list prices, to be powered by General Electric Co engines, as part of a drive toward increased efficiency.

New Zealand’s flag carrier also trimmed its earnings outlook citing higher fuel prices, and said problems with Rolls-Royce Holdings PLC engines and a moderation in demand growth have impacted its financial and operational performance.

The new plane order confirmed a Reuters report last week that Boeing had beaten out rival Airbus SE, which had proposed the A350 for the hotly contested deal.

The airline, which has Rolls-Royce engines on its existing fleet of 13 787s, announced it had switched to GE engines for the new order.

The 787s will replace eight older 777-200ERs and leave the carrier with an all-Boeing wide-body fleet as well as Airbus A320 family jets for shorter flights.

The order comprises eight long-range 787-10s, with the agreement including an option to increase the number of aircraft to 20.

The deal also gives the airline, which has previously mentioned a goal of flying Auckland-New York non-stop, the option to switch some aircraft to the longer range 787-9s.

“With the 787-10 offering almost 15 percent more space for customers and cargo than the 787-9, this investment creates the platform for our future strategic direction and opens up new opportunities to grow,” Air New Zealand Chief Executive Christopher Luxon said in a statement.

The eight jets will enter the Air New Zealand fleet between 2022 and 2027, the airline said.

“The 787-10 has 95 percent commonality with Air New Zealand’s existing fleet of 787-9s and will provide the airline with added benefits in terms of capacity and overall operations,” Vice President of Boeing Commercial Sales and Marketing for Asia Pacific Christy Reese said.

The 787-10 is the largest member of Boeing’s Dreamliner series, and can serve up to 330 passengers in a standard two-class configuration, about 40 more than the 787-9 airplane.

The airline said the 787 was 25 percent more fuel efficient than the jets it is replacing, and noted that carriers typically receive large discounts on the list price of jets.

HEADWIND

In a separate announcement, Air New Zealand trimmed its 2019 earnings before taxation, saying it now expects to beat NZ$340 million ($223 million). That compared with a forecast range of NZ$340 million to NZ$400 million announced in late March.

The change was due to an additional NZ$25 million headwind from increased jet fuel prices, the company said.

The airline also said Rolls-Royce engine issues – in which components prematurely fail or needed extra checks – impacted 2,500 flights and led to 150 cancellations, affecting its financial performance.

Air New Zealand in March launched a two-year cost reduction programme and said it would defer spending on aircraft by about NZ$750 million ($491 million) as part of a business review.

In February, Air New Zealand slashed domestic fares by as much as 50 percent in a shake-up of its pricing structure in response to the slackening travel market.

(Reporting by Praveen Menon in Wellington, Aditya Soni in Bengaluru and Jamie Freed in Singapore; Editing Richard Pullin and Christopher Cushing)

United CEO Promises To Rebook 737 MAX Passengers

May 22, 2019 / WIL BALDWIN

FILE PHOTO: United Airlines Chief Executive Officer Oscar Munoz poses for pictures in his office at the company’s headquarters in Chicago, Illinois, U.S., November 14, 2018.
Picture taken November 14, 2018. REUTERS/Tracy Rucinski

CHICAGO (Reuters) – United Airlines Chief Executive Oscar Munoz promised on Wednesday to accommodate any passengers concerned about flying Boeing Co’s 737 MAX jets once regulators deem the aircraft safe to fly again.

United is the only one of the three U.S. MAX operators to make such an announcement so far. Southwest Airlines Co, the world’s largest MAX operator, said on Wednesday discussions were still ongoing.

American Airlines Group Inc said on Wednesday “customers can be assured that our pilots would never operate an unsafe aircraft,” echoing other carriers’ insistence that safety is paramount to putting the globally grounded jets back in the air.

Still, following two fatal crashes of the MAX model within months, an Ethiopian Airlines jet in March after a Lion Air jet in October, Munoz said he wants customers to feel as comfortable as possible.

“If people need any kind of adjustments we will absolutely rebook them,” Munoz told reporters after the airline’s annual shareholders’ meeting.

Munoz said it was too soon to discuss whether Boeing would pick up the tab. None of the shareholders at the meeting questioned the company’s MAX plans. United is in the midst of a growth plan that has fuelled a 17% share rise over the past year.

Global regulators are meeting with the U.S. Federal Aviation Administration on Thursday to discuss Boeing’s proposed software fix and training updates for the MAX, which has been grounded since mid-March.

The timing of regulatory approval is still unclear, and Munoz said that is only the first step, with independent analysis and public and employee confidence critical in the Chicago-based airline’s strategy for eventually flying the jets again.

A Reuters/Ipsos poll released last week showed U.S. fliers still value ticket prices over aircraft models when choosing flights, suggesting the crashes have had little impact on consumer sentiment.

The No. 3 U.S. airline by passenger traffic, which trades under parent company United Continental Holdings Inc, operates 14 MAX jets and has dozens more on order.

United, American and Southwest together have cancelled thousands of flights during the busy U.S. summer travel season and warned of hits to profits from the grounded MAX, which many airlines had rushed to buy thanks to the narrowbody’s higher fuel-efficiency and longer range.

Still, Munoz said he was not concerned about the timetable for a return to service.

“We have to fly this aircraft for a long period of time, so a week, a month, whatever is not that important,” Munoz said.

(Reporting by Tracy Rucinski in Chicago; Editing by Matthew Lewis and Phil Berlowitz)

Air New Zealand Picks Boeing for Wide-body Jet Order

May 20, 2019 / WIL BALDWIN

PARIS (Reuters) – Air New Zealand Ltd has decided to buy wide-body planes from Boeing Co, people with direct knowledge of the matter said, ending an 18 month battle between the U.S. aircraft maker and European rival Airbus SE.

The carrier has been considering replacing eight Boeing 777-200ER aircraft in a deal worth over $2 billion at list prices, though carriers typically receive steep discounts. Air New Zealand already uses Boeing wide-bodies exclusively on long-haul flights, and Airbus single-aisle jets on shorter routes.

The final choices under consideration were the Boeing 787 and Airbus A350, Air New Zealand Chief Financial Officer Jeff McDowall said in a video interview with the New Zealand Herald published on Saturday.

“They are both fantastic aircraft,” McDowall said. “Both produce a fantastic customer experience compared to the existing aircraft but also a lower cost and lower carbon emissions… We expect to make a decision soon, in the next month.”

Air New Zealand already operates 13 787-9 jets and has one more on order. The airline did not respond to a Reuters’ request for comment. It will hold an annual investor briefing on May 27.

Boeing and Airbus declined to comment. The people with direct knowledge of the matter declined to be identified ahead of a public announcement.

Air New Zealand’s chief executive, Christopher Luxon, last year told Reuters the larger Boeing 777X was also under consideration, and that the airline planned to use the new jets to begin longer routes such as Auckland to New York and Brazil.

In March, CFO McDowall in an analyst briefing said the airline would need fewer replacement jets in 2023 than initially anticipated due to changes in its flight network.

Air New Zealand began a two-year cost reduction program in March and deferred aircraft capital expenditure of about NZ$750 million ($490.1 million) as part of a business review.

A month earlier, it slashed domestic fares by as much as 50% in a shake-up of its pricing structure in response to a slackening travel market.

(Reporting by Tim Hepher in Paris; Additional reporting by Praveen Menon in WELLINGTON; Editing by Stephen Coates and Christopher Cushing)

FILE PHOTO: An Air New Zealand Airbus A320-200 plane takes off from Kingsford Smith International Airport in Sydney, Australia, February 22, 2018. REUTERS/Daniel Munoz/File Photo

Embraer Announces Earnings Results For 1st Quarter 2019

May 15, 2019 / WIL BALDWIN

HIGHLIGHTS

Embraer delivered 11 commercial jets and 11 executive jets (8 light / 3 large) in 1Q19.

The Company’s firm order backlog at the end of 1Q19 was US$ 16 billion considering all deliveries as well as firm orders obtained during the period.

EBIT and EBITDA in 1Q19 were US$ (15.2) million and US$ 30.9 million, respectively, yielding EBIT margin of -1.8% and EBITDA margin of 3.8%. This compares to EBIT of US$ (5.3) million (-0.6% EBIT margin) and EBITDA of US$ 57.8 million (6.0% EBITDA margin) in 1Q18.

1Q19 Net loss attributable to Embraer shareholders and Loss per ADS were US$ (42.5) million and US$ (0.23), respectively. Adjusted net loss (excluding deferred income tax and social contribution) for 1Q19 was US$ (61.8) million, with Adjusted loss per ADS of US$ (0.34). Embraer reported adjusted net loss in 1Q18 of US$ (60.5) million, for an adjusted loss per ADS of US$ (0.33) in the quarter.

Embraer reported Free cash flow of US$ (665.3) million in 1Q19, compared to free cash flow of US$ (435.2) million reported in 1Q18. The Company finished the quarter with total cash of US$ 2,483.4 million and total debt of US$ 3,587.1 million, yielding a net debt position of US$ 1,103.7 million versus net debt of US$ 439.9 million at the end of 2018.

The Company’s shareholders approved the proposed strategic partnership between Boeing and Embraer during an Extraordinary General Shareholders’ Meeting on February 26, 2019. At the meeting, 96.8% of all valid votes were in favor of the transaction, with participation of roughly 67% of all outstanding shares.

The closing of the transaction between Boeing and Embraer remains subject to obtaining regulatory approvals and the satisfaction of other customary closing conditions, expected by the end of 2019.

The Company reaffirms all aspects of its 2019 financial and deliveries guidance.

Click the link below for the full report!

https://daflwcl3bnxyt.cloudfront.net/m/4fe5d3ce64e6b820/original/Embraer-Release-US-1Q19_FINAL.pdf

FAA Convenes Review Board for Boeing Software Fix

May 7, 2019 / WIL BALDWIN

WASHINGTON (Reuters) – The Federal Aviation Administration said on Tuesday it had convened a multi-agency Technical Advisory Board to review Boeing’s proposed software fix on the grounded 737 MAX.

The board consists of experts from the FAA, U.S. Air Force, NASA and Volpe National Transportation Systems Center that were not involved in any aspect of the Boeing 737 MAX certification. The board’s recommendations will “directly inform the FAA’s decision concerning the 737 MAX fleet’s safe return to service.”

The plane was grounded worldwide in mid-March after two Boeing 737 MAX crashes in October and March killed 346 people.

Boeing, which has yet to formally submit the software fix to the FAA for approval, did not immediately comment Tuesday on the new review.

Some in Congress have urged the FAA to conduct an independent review into the anti-stall system at the center of investigations into two deadly plane crashes before allowing the planes to resume flying.

The board known as TAB will assess Boeing’s proposed fix to the Maneuvering Characteristics Augmentation System (MCAS), the FAA said.

“The TAB is charged with evaluating Boeing and FAA efforts related to Boeing’s software update and its integration into the 737 MAX flight control system. The TAB will identify issues where further investigation is required prior to FAA approval of the design change,” the FAA said.

The world’s largest planemaker, facing its worst crisis in years and the worldwide grounding of its top-selling jetliner, has said its software upgrade and associated pilot training will add layers of protection to prevent erroneous data from triggering MCAS.

The system activated in the Ethiopian Airlines crash in March and also during a separate Lion Air crash in Indonesia in October.

There are a number of other reviews ongoing, including a blue-ribbon committee appointed by Transportation Secretary Elaine Chao looking at the FAA’s aircraft certification process.

Federal prosecutors, the Transportation Department’s inspector general and lawmakers are investigating the FAA’s certification of the 737 MAX 8 aircraft.

A separate joint review by 10 governmental air regulators started last week and is expected to last about 90 days, but the FAA has said that a decision on ungrounding the plane is not contingent on that review being completed.

(Reporting by David Shepardson; Editing by Nick Zieminski)

FAA Mandates Changes to Boeing 787 Dreamliner

May 1, 2019 / WIL BALDWIN

SEATTLE (Reuters) – The U.S. Federal Aviation Administration on Wednesday said it was mandating new flight control software and parts to Boeing Co’s 787 Dreamliner to address what it called an unsafe operating condition of certain products on the plane.

The FAA’s airworthiness directive to plane operators makes compulsory changes Boeing outlined in service bulletins in 2017 and early 2018 for certain areas in 787’s tire and wheel “threat zones” that may be susceptible to damage, the company said.

Boeing, which works closely with the FAA to monitor its fleet for potential safety issues, said: “This issue has been long since resolved with system improvements that have been incorporated into production for all 787 models.”

The FAA said damage to the 787’s tire and wheel “threat zones” could result in the loss of braking and steering power on the ground at certain speeds.

The FAA said it requires installing hydraulic tubing, a pressure-operated check valve and new flight control software.

(Reporting by Eric M. Johnson in Seattle; editing by James Dalgleish and Cynthia Osterman)

Boeing Supplier Spirit AeroSystems Suspends Outlook

May 1, 2019 / WIL BALDWIN

(Reuters) – Boeing Co’s largest supplier Spirit AeroSystems Holdings Inc reported strong first-quarter results on Wednesday, while following the planemaker in suspending its full-year outlook in the face of the global grounding of 737 MAX jets.

The crisis with Boeing’s most popular aircraft has thrown into doubt orders for a raft of parts makers who have been investing heavily to meet record-breaking demand from the world’s biggest planemaker over the past two years.

Spirit, which makes fuselage, structural engine components and wing parts for the MAX, did a deal with Boeing last month to stick to its current parts delivery schedules for now, and its profits in the first quarter were up 30 percent, according to Wednesday’s quarterly results.

Boeing however has announced cutbacks in its monthly production of MAX jets to 42 from 52 and while it says it is nearing certification for a software fix for the jet, airlines are assuming the planes will not be back in the air before August.

Spirit said with the uncertainty around MAX production it could not stand by its previous full-year outlook which had factored production for MAX jets rising to 57 units per month in June.

“As we now expect to remain at 52 aircraft per month for some period of time, (prior) guidance does not reflect our current outlook,” Spirit Chief Executive Officer Tom Gentile said, adding he was waiting for more clarity from Boeing on MAX’s return to service.

MAX’s other major supplier General Electric Co, which makes engines with Safran SA of France, on Tuesday stuck to its full-year forecasts, while highlighting risk due to MAX’s reduced production.

Another MAX supplier United Technologies Corp last month included an up to 10 cents per share impact in its full-year profit outlook from the groundings of the jet, assuming Boeing produced at 42 aircraft per month for the rest of the year.

Spirit, whose shares are down about 10 percent since the fatal crash of the Ethiopian Airlines’ jet on March 10, rose as much as 3.5 percent to $89.96 in morning trade.

“Given that (Spirit’s) shares have already notably sold off, we think much of this … has been discounted into the price,” Vertical Research Partners Krishna Sinha said.

The company said it has taken actions including deferring capital investments and pausing hiring and share repurchases to mitigate the financial impact of the MAX production change.

On an adjusted basis, Spirit earned $1.68 per share, beating analysts’ average estimate of $1.64 per share, according to IBES data from Refinitiv.

Total revenue rose 13.4 percent to $1.97 billion (£1.51 billion), beating estimates of $1.93 billion.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)

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