Tag: Max (Page 10 of 17)

American Airlines Gives an Update on the Boeing 737 MAX

June 10, 2019 / WIL BALDWIN

Cancellations extended through Sept. 3.

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.

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)

Via Airlines Ceases All Commercial Service

May 31, 2019 / WIL BALDWIN

Growing independent regional airline Via Airlines has abruptly ended all scheduled commercial flights with plans to revert back to its original business model of conducting charter operations. Known by its shortened name, ViaAir, the airline began flying in 1997, specializing in both public and private charter flights catered for corporations, casinos and sports teams.

Click the link below for the full story! https://airlinegeeks.com/2019/05/31/via-airlines-officially-stops-commercial-routes-in-favor-of-charter-flights/

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)

Ryanair Posts Weakest Annual Profit in 4 Years

May 20, 2019 / WIL BALDWIN

Reuters • May 19, 2019

Profit could fall further in coming year
Fares likely to fall further this summer
Says 737 Max delay a factor
Sees first Max deliveries in October (Adds quotes; details on Max 737 delays)

DUBLIN, May 20 (Reuters) – Ryanair reported its weakest annual profit in four years on Monday and said earnings could fall further as European airlines wage what Chief Executive Michael O’Leary described as “attritional fare wars.”

After initially falling 6%, the shares made up some ground after O’Leary, who helped to develop the no-frills airline model in Europe, argued that lower fares and profitability for a couple of years were a price worth paying to boost market share and hasten consolidation.

O’Leary said the lower fares and profit were cyclical and that four or five European airlines were likely to emerge as the winners in the sector.

“Our strategy would be to keep adding capacity as quickly as we can in all the markets where we can,” said O’Leary, who has been in charge of Ryanair since 1994.

“Will it be painful for a year or two, yes it will. But will it shake out more of the competition, yes it will.”

Ryanair, Europe’s largest low-cost operator, had already signalled a sharp fall in profitability due largely to overcapacity in two warnings last year.

Its 29% fall in after-tax profits to 1.02 billion euros ($1.14 billion) for its financial year to March 31 was in line with investor forecasts.

But its profit forecast for the current financial year to end-March 2020 of between 750 million and 950 million euros, was “considerably worse than expected,” Goodbody analyst Mark Simpson said in a note.

A company poll of analysts published ahead of the release had forecast a figure of 977 million euros.

O’Leary said the forecast was effectively for profits to remain flat as the 2020 figure includes recently acquired and loss-making Laudamotion unit for the first time and would be a “very good outcome.” The equivalent figure in 2019 would have been 880 million.

737 MAX GROUNDING

Several rival airlines have warned of a worse trading environment – partly due to overcapacity and partly because European travellers are holding off booking their summer holidays for fear of how the Brexit process will pan out.

Alistair Wittet, portfolio manager at Comgest, which has a 0.74% stake in Ryanair according to Refinitiv Eikon, said some investors appeared to have been convinced by O’Leary’s line of argument.

“The long-term opportunity is fantastic for a company like Ryanair because that capacity will come out” even if Ryanair has to go through a lot more pain than expected in the meantime, Wittet said.

Ryanair has also been affected by delays in the delivery of the Boeing 737 MAX after its worldwide grounding in March following a fatal Ethiopian Airlines crash.

The airline, which has ordered 135 737 MAX 200s and has options on 75 more, was expecting to receive its first five planes between April and June but said it now expects them to be flying by November. O’Leary said he was “reasonably confident” it would have around 50 MAX aircraft flying next summer.

The grounding has forced Ryanair to cut around 1 million seats in the year to March 2020. But it still expects to fly 153 million passengers in the period, up from 139 million last year.

The airline plans to have a conversation with Boeing about “modest compensation”, Chief Financial Officer Neil Sorohan said.

Ryanair’s shares were trading down 3 percent at 10.46 euros at 1250 GMT, down over 40% from a peak of 19.39 euros in August 2017, before the airline was hit by a wave of industrial unrest, fare weakness and the grounding of the MAX.

In what O’Leary described as a vote of confidence from the board, Ryanair will begin a 700 million euro share buyback in the coming days. ($1 = 0.8966 euros)

(Additional reporting by Helen Reid; Editing by Subhranshu Sahu and Louise Heavens)

Airbus Lands MBDA Boss Bouvier To Steer Strategy

May 15, 2019 / WIL BALDWIN

PARIS (Reuters) – European missile maker MBDA’s chief executive is returning to Airbus as head of strategy as the planemaker seeks to modernise its factory system and explores future options in defence, two people familiar with the matter said.

Antoine Bouvier, 59, replaces Patrick de Castelbajac who becomes head of Airbus Asia-Pacific, the sources said. Castelbajac’s responsibility for Airbus international operations had already been transferred to sales chief Christian Scherer.

At Airbus, Bouvier will be embarking on a battle of wits with a new strategy head at arch-rival Boeing CO.

Chris Raymond, until recently head of Boeing’s Autonomous Systems business, recently became vice-president for enterprise strategy under finance director Greg Smith, sources said. Raymond’s appointment has not been officially announced.

Airbus and MBDA declined to comment on Bouvier’s appointment, which was first reported by AeroDefenseNews. It is the latest step in a management reshuffle accelerated by the recent official appointment of Guillaume Faury as Airbus CEO.

Bouvier, a former civil servant who narrowly missed out on running France’s DGA defence procurement agency two years ago, brings experience in forging defence partnerships to Airbus, which is embroiled in a row with Germany over arms controls.

He is expected to be replaced at MBDA by former OneWeb chief Eric Beranger.

Although there is fierce day-to-day competition, with Taiwan’s China Airlines opting last week to switch to Airbus, the European planemaker is not expected to exploit the grounding of Boeing’s 737 MAX jetliner for now, industry sources said.

NEXT GENERATION

The future of the Airbus A320neo and Boeing 737 MAX – the industry’s most successful models – is seen as strategically entwined and insiders say Airbus is also worried about the impact of the grounding on global certification..

But the planemakers are crafting crucial strategies for the next generation of single-aisle jets from about 2030 – both likely to define the aircraft industry well beyond mid-century.

Insiders say Faury wants Airbus to focus more on industrial strategy and closing a perceived gap with Boeing in production technology, as well as responding to the threat of increased environmental regulation of air travel, as well as new products.

Airbus must also assess how to respond to rising defence spending after its failure to merge with Britain’s BAE Systems in 2012 left it heavily skewed towards commercial markets that are now approaching the end of an extended upcycle.

It is involved on the German side of a nascent Franco-German fighter project along with French partner Dassault Aviation but faces competition for valuable systems work and a growing spat with the German government over export controls.

At MBDA, Bouvier helped forge an Anglo-French agreement on the use of shared missile technology.

Bouvier followed the classic path of a French mandarin from the prestigious Polytechnique engineering school to France’s ENA civil service academy. He had been linked with a number of top aerospace posts such as Safran and Thales.

“His appointment will be very credible with the French government,” a person familiar with the appointment said. France and Germany own 11 percent each of Airbus.

(Reporting by Tim Hepher; Editing by Luke Baker and Alexander Smith)

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)

Air Canada Reports Surprise Profit Despite MAX Grounding

May 6, 2019 / WIL BALDWIN

May 6 (Reuters) – Air Canada on Monday reported a surprise quarterly profit that sent shares up 4 percent in morning trading, helped by flying more passengers and its purchase of a loyalty program, despite rising costs from the global grounding of Boeing’s 737 MAX jets.

Canada’s largest carrier said it sees strong booking trends ahead of the busy summer season, and expects second quarter results in line with forecasts made before the March global suspension of the Boeing MAX in March following two fatal crashes involving the model.

Air Canada stock was up 4 percent, even as Canada’s main stock index fell at the open on Monday, after U.S. President Donald Trump threatened to raise tariffs on China, triggering a global rout in risky assets.

Air Canada Chief Executive Calin Rovinescu said the carrier, which operates 24 MAX jets, would return the planes to service based on its own safety assessment, in addition to regulators giving it the green light.

During the first three months of the year, Air Canada and other North American carriers that fly the MAX scrambled to replace flights following harsh weather and the plane’s grounding, while facing pressure from rising fuel costs.

“First quarter is always the most demanding for Canadian airlines,” Rovinescu said. “This year was an exception and it was made more so with the unexpected grounding of the 737 MAX.”

Air Canada canceled 1,600 mainline flights during the first three months of the year, a 40 percent increase compared to the first quarter of 2018, Rovinescu told analysts.

The company was able to protect most of its flights from the date of the grounding through April 30 by entering into new leases, among other strategies, he said.

For the first quarter, the company reported a 9.4 percent rise in total operating revenue to C$4.45 billion ($3.30 billion), beating analysts’ estimate of C$4.39 billion.

In January, Air Canada closed a deal to acquire the Aeroplan loyalty program.

Aeroplan revenue and strong demand drove a nearly 5 percent increase in passenger yield, the company said, even as cost per available seat mile (CASM) — a measure of how much an airline spends to fly a passenger — climbed 3.8 percent.

Air Canada said traffic rose 4.2 percent while passenger revenue per available seat mile, a key revenue measure for airlines, increased 4.5 percent in the first quarter.

The Montreal-based company reported an adjusted net income of C$17 million, or 6 Canadian cents per share, in the first quarter ended March 31, compared to a loss of C$26 million, or 10 Canadian cents per share, a year earlier.

Analysts’ on average had expected a loss of 18 Canadian cents, according to IBES data from Refinitiv. ($1 = 1.3467 Canadian dollars)

(Reporting by Allison Lampert and Shanti S Nair ; Editing by Sriraj Kalluvila and Bill Trott)

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)

Alaska Air Group Stock Upgraded

April 30, 2019 / WIL BALDWIN

Every day, Wall Street analysts upgrade some stocks, downgrade others, and “initiate coverage” on a few more. But do these analysts even know what they’re talking about? Today, we’re taking one high-profile Wall Street pick and putting it under the microscope…

After underperforming the S&P 500 by more than 17 points over the past year, Alaska Air Group (NYSE: ALK) delivered a pleasant surprise to its shareholders last week, outperforming analyst expectations and beating on both earnings and revenue. The $0.17 per share that Alaska earned in fiscal Q1 2019 topped consensus estimates by more than 50% — and the airline even eked out a small sales beat with its $1.88 billion in Q1 revenue.

Not everyone was impressed.

Click the link for the full story! https://finance.yahoo.com/news/alaska-air-group-stock-upgraded-182034848.html

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