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United Bids for 6 New Slots at Tokyo’s Haneda Airport

CHICAGO (Reuters) – United Continental Holdings is applying for six of 12 new slots open to U.S. carriers at Tokyo’s Haneda International Airport in a push to increase daily nonstop flights to the Japanese capital ahead of the 2020 Olympic Games and beyond.

Haneda is located closer to downtown Tokyo than the capital’s other international airport Narita, and flies to more destinations throughout Japan, making it attractive for both business travelers and tourists.

Thursday is the deadline for applications to the U.S. Department of Transportation for the 12 extra Haneda slots that Japan has agreed to allot to U.S. airlines.

The extra slots for U.S. airlines were unlocked after Japan reached an agreement with the U.S. Air Force to open up new flight paths around a nearby U.S. air base, a move needed to boost Haneda movements in the run-up to the 2020 Olympics in Tokyo.

Completion of an aviation agreement between the U.S. and Japanese governments is expected later this year, United said. Flights are expected to begin service by the summer of 2020, once the U.S. Department of Transportation awards the slots.

U.S. carriers American Airlines Group, Delta Air Lines and Hawaiian Airlines are also expected to bid.

United wants to fly to Haneda from its hubs at Newark Liberty, Chicago O’Hare, Washington Dulles, Los Angeles International, Houston George Bush and Guam. The flights from Newark, Los Angeles and Guam would be new routes operated by Boeing 777 and 787 aircraft, while the flights from the other three hubs would be shifted from Narita.

Under the proposal, United said it would connect to 37 destinations in Japan from Haneda with its joint venture partner All Nippon Airways (ANA).

Industry analysts say a recent sale of Boeing 737 MAX aircraft to ANA may have weighed in the decision to grant more flying rights for U.S. airlines into Haneda, which airlines compete for aggressively due to the airport’s proximity to the Japanese capital, a major center for global commerce.

(Reporting by Tracy Rucinski; Editing by Chizu Nomiyama)

A United Airlines plane with the Continental Airlines logo on its tail, sits at a gate at O’Hare International airport in Chicago October 1, 2010. REUTERS/Frank Polich/File Photo

Boeing Reportedly Near $3.5 Billion 737 MAX Deal with ANA

SEATTLE (Reuters) – Boeing Co is close to a deal worth $3.5 billion (2.66 billion pounds) at list prices to sell 30 Boeing 737 MAX jetliners to ANA Holdings, two people familiar with the matter said.

The deal is the first sale in Japan for the newest version of Boeing’s best-selling 737 family and marks a reversal for Europe’s Airbus, five years after the same airline became the first Japanese carrier to pick the competing A320neo.

It also coincides with negotiations between Washington and Tokyo over a potential trade pact, with Japan facing pressure from U.S. President Donald Trump’s administration to cut its trade surplus with the United States.

Boeing declined to comment. ANA could not immediately be reached for comment. A deal announcement could come as early as Tuesday, subject to the airline’s final approval, the sources said, speaking on condition of anonymity.

The Boeing 737 MAX and Airbus A320neo have amassed thousands of orders due to significant fuel savings offered by a new generation of engines.

But the world’s largest plane makers continue to wage fierce market battles, while Boeing has been chipping away at Airbus’s recent lead in the market for such medium-haul airplanes.

Trump and other top U.S. administration officials have criticized Japan over trade, asserting that Tokyo treats the United States unfairly by shipping millions of cars to North America while blocking imports of U.S. autos and farm products.

Japan says its markets for manufactured goods are open, although it does protect politically sensitive farm products.

In September, Trump and Japanese Prime Minister Shinzo Abe agreed to start trade talks in an arrangement that appeared, temporarily at least, to protect Japanese automakers from further tariffs on their exports, which make up about two-thirds of Japan’s $69 billion trade surplus with the United States.

Japan has insisted the new Trade Agreement on Goods would not be a wide-ranging free trade agreement, but U.S. Trade Representative Robert Lighthizer said last year he was aiming for a full free-trade deal requiring approval by Congress.

(Reporting by Eric M. Johnson in Seattle and by Reuters bureaus; Editing by GV De Clercq and David Evans)

Wall Street Set To Jump On Temporary Trade Detente

(Reuters) – U.S. stock index futures jumped around 2 percent on Monday, setting Wall Street up to add to last week’s strong gains, after the United States and China declared a temporary trade truce.

Strong gains in Apple Inc (AAPL.O) and other technology stocks pushed Nasdaq futures NQc1 up more than 2 percent, while S&P 500 e-minis ESc1 touched a near 1-month high. Gains in Dow futures set the blue-chip index up for a near 450-point gain at the open.

Washington and Beijing agreed to a 90-day trade ceasefire during the G20 summit in Argentina on Saturday and U.S. President Donald Trump said China has agreed to “reduce and remove” tariffs below the 40 percent level that the country is currently charging on U.S.-made vehicles.

However, the White House also said that the existing 10 percent tariffs on $200 billion worth of Chinese goods would be lifted to 25 percent if no deal was reached within 90 days.

The trade optimism spilt over to shares of Apple, which gained 3.3 percent in premarket trading.

Trump had said last week that the next round of tariffs could also be placed on the company’s iPhones, as part of the $267 billion list of goods not yet hit by tariffs.

Trade-sensitive Caterpillar Inc (CAT.N), Boeing Co (BA.N) gained over 4.5 percent each, while U.S. carmakers General Motors Co (GM.N), Ford Motor Co (F.N) and Tesla Inc (TSLA.O) rose between 3 percent and 4 percent.

Shares of energy companies also rose as crude prices surged, helping lift Exxon Mobil Corp (XOM.N) up by 2.1 percent and Chevron Corp (CVX.N) by 2.4 percent. [O/R]

“Most of us were hoping that we would come out of these discussions with no new tariffs and a pause, which is ultimately what we got,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

Image from RT.com

United Announces New Nonstop Between Denver and Frankfurt

DENVER, Nov. 29, 2018 /PRNewswire/ — United Airlines (UAL), the U.S. carrier with the most service to Germany, today announced it will begin its 15th daily nonstop flight between the United States and Germany from its hub at Denver International Airport. The airline announced it will begin year-round service between Denver and Frankfurt, Germany, beginning May 2, 2019, subject to government approval. Tickets are now available for purchase on united.com.

United’s new service between Denver and Frankfurt is the only nonstop service from Denver to Germany by a U.S. carrier and is the airline’s ninth flight between the United States and Frankfurt. United currently operates daily nonstop service between Frankfurt and its hubs in Chicago, Houston, New York/Newark, San Francisco and Washington Dulles.

Denver (DEN) – Frankfurt (FRA) starts May 2, 2019

Flight

Frequency

City Pair

Depart

Arrive

Aircraft

UA 182

Daily

DEN – FRA

3:40 p.m.

09:20 a.m. +1 day

Boeing 787

UA 181

Daily

FRA – DEN

11:05 a.m.

1:20 p.m.

Boeing 787

From Denver, United will connect more than 60 cities across the Western United States including Las Vegas, Phoenix, Salt Lake City and Seattle to Frankfurt.

“United is committed to expanding our global network for our customers and our employees and we are excited to continue this growth with the addition of new service between Denver and Frankfurt,” said Patrick Quayle, United’s vice president of International Network. “From the mid-continent United States to the rest of the world, United offers customers more choice and more international flights and destinations than any other carrier.”

United Airlines has served the Denver community since 1937 and is the only airline to continuously operate service in Denver – operating 6.5 million flights and serving more than 580 million customers.

“We are appreciative to have such a great partnership with United Airlines and that they continue to grow and invest in Denver with the addition of this new year-round transatlantic service,” said DEN CEO Kim Day.

United Airlines in Germany

United Airlines has continuously served Germany for more than 28 years, when the airline began daily service between Frankfurt and its Chicago and Washington Dulles hubs. In addition to United’s new daily service between Denver and Frankfurt, the airline offers customers daily, year-round service to Frankfurt from its hubs in Chicago, Houston, New York/Newark, San Francisco and Washington Dulles. United also operates daily nonstop service from Munich to Chicago, Houston, New York/Newark, San Francisco and Washington Dulles, and year-round nonstop service between New York/Newark and Berlin/Tegel. Additionally, United offers seasonal service between Munich and San Francisco. All flights are conveniently timed to connect at United’s U.S. hubs with an extensive connecting network to destinations throughout the United States and beyond.

United Airlines in Denver

Denver International Airport, a United hub since 1937, offers customers more than 400 flights daily across its domestic network and more than 15 international flights to key business and leisure destinations in five countries in Europe, Asia and the Americas. The airport is the region’s key gateway to international economic and tourism development.

Customers traveling to the U.S. from Frankfurt can conveniently connect to hundreds of U.S. destinations including easy connecting services between Denver and Jackson Hole and Aspen, popular ski destinations for European visitors.

About United

United Airlines and United Express operate approximately 4,700 flights a day to 356 airports across five continents. In 2017, United and United Express operated more than 1.6 million flights carrying more than 148 million customers. United is proud to have the world’s most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C. United operates 760 mainline aircraft and the airline’s United Express carriers operate 546 regional aircraft. The airline is a founding member of Star Alliance, which provides service to 193 countries via 28 member airlines. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United’s parent, United Continental Holdings, Inc., is traded on the Nasdaq under the symbol “UAL”.

SOURCE United Airlines

For further information: United Airlines Worldwide Media Relations, 872-825-8640, media.relations@united.com

US Safety Board Hearing On Southwest Engine Explosion

Nov 14 (Reuters) – The U.S. National Transportation Safety Board is set to hold an investigative hearing on Wednesday about a midair incident in April during which an engine on a Southwest Airlines Boeing 737 exploded over Pennsylvania, killing one passenger.

Dallas-based Southwest has been under intense scrutiny in the months since an engine on a flight headed from New York to Dallas blew apart, shattering a plane window, flinging shrapnel and killing passenger Jennifer Riordan, one of 149 people aboard.

The episode, which has raised concerns about the safety of similar engines, was the first fatality on a U.S. commercial passenger airline since 2009.

The all-day hearing in Washington will focus on the fan blade design and development history of the engine type that failed, a CFM56-7B made by CFM International, a transatlantic joint-venture between General Electric Co and France’s Safran SA, the NTSB said.

The hearing will also focus on engine fan blade inspection methods and engine fan blade containment design and certification criteria, the NTSB said.

Representatives from Chicago-based planemaker Boeing, CFM, and Southwest Airlines are due at the hearing.

The companies did not immediately respond to requests for comment.

The hearing comes as Indonesian authorities investigate last month’s deadly Lion Air crash involving a newer version of Boeing’s best-selling single-aisle aircraft, the 737 MAX.

(Reporting by Eric M. Johnson in Seattle)

Image from www.boeing.com

Boeing’s October 737 Deliveries Up On Strong Demand

(Reuters) – Boeing Co (BA.N) delivered 43 of its best-selling 737 single-aisle aircraft in October, up from 37 a year ago, helped by strong demand in a booming jet aircraft market and putting it on track for another year of record deliveries.

The planemaker’s total deliveries for the first 10 months of 2018 now stand at 625, up from 610 in the same period a year ago.

Boeing delivered a total of 57 aircraft in October, up from a 56 a year ago, despite a warning from Chief Financial Officer Greg Smith last week that deliveries for the month would be lower than normal while promising numbers would rebound in the final two months of the year.

Boeing is working through a recovery plan dealing with a combination of delays on fuselages, engines and other components, which created a production bottleneck at its Seattle-area plant this summer for the best-selling 737.

The company aims to deliver 810-815 planes in 2018, keeping it ahead of European rival Airbus SE (AIR.PA), which delivered 503 aircraft through September this year.

Shares of the planemaker were marginally up in premarket trading.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Saumyadeb Chakrabarty)

Image from www.boeing.com

Wynn Resorts Shares Plunge 15% On Macau News

Shares of Wynn resorts (WYNN) dove more than 15 percent Thursday after the casino operator’s chief executive said the company is seeing a “slowdown” at its Macau location.

Though CEO Matthew Maddox said results were strong during China’s seven-day Golden Week holiday, attendance since then has been “choppy” during the week and “sporadic” on the weekends.

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Wynn Resorts shares plunge 15% on Macau news

Boeing Issues Advice For Pilots After Indonesia Crash

ZHUHAI, China/WASHINGTON (Reuters) – Boeing Co (BA.N) said on Wednesday it had issued a safety bulletin reminding pilots how to handle erroneous data from a key sensor in the wake of last week’s Indonesian jetliner crash.

The U.S. planemaker said investigators probing the Lion Air crash off the coast of Indonesia, in which all 189 on board were killed, had found that one of the “angle of attack” sensors on the brand-new Boeing 737 MAX jet had provided erroneous data.

Experts say the angle of attack is a crucial parameter that helps the aircraft’s computers understand whether its nose is too high relative to the current of air – a phenomenon that can throw the plane into an aerodynamic stall and make it fall.

Some modern aircraft have systems designed to correct the posture of the aircraft automatically to keep flying safely.

There are also procedures for pilots to follow in the event of missing data from damaged sensors on the fuselage, but it remains unclear how much time the crew of flight JT610 had to respond at the relatively low altitude of around 5,000 feet.

An angle of attack sensor had been changed by mechanics on the ground in Bali the day before the crash, Indonesia’s National Transportation Safety Committee (KNKT) said.

The captain and first officer flying from Bali to Jakarta the night before the crash had indicators displaying differences in angle of 20 degrees, KNKT said, but that flight landed safely despite the issues in the air.

COCKPIT PROCEDURE

Boeing said in a statement received at China’s largest air show in Zhuhai that its note to airlines underscored “existing flight crew procedures” designed to address circumstances where information coming into the cockpit from the sensors was wrong.

The Boeing 737 MAX has three such blade-shaped sensors. Erroneous readings can in some circumstances cause the 737 MAX to point the nose down sharply to keep air under the wings and avoid a stall, according to a person briefed on the matter.

A source said on condition of anonymity that the Boeing bulletin related only to the 737 MAX, of which there are just over 200 in service.

Service bulletins can be followed by mandatory airworthiness directives by the U.S. Federal Aviation Administration.

Boeing has delivered 219 737 MAX jets to customers globally, with 4,564 orders for jets yet to be delivered.

The Boeing 737 MAX is a more fuel-efficient version of the manufacturer’s best-selling single-aisle 737 series.

The Lion Air crash was the first involving the new version, which airlines introduced into service last year.

Indonesian authorities have downloaded information from the flight data recorder that showed a cockpit indicator on the Lion Air jet was damaged for its last four flights.

A search for the cockpit voice recorder, the second so-called “black box”, remains underway.

KNKT said it would attempt to reconstruct the jet’s last flight using Boeing simulators in Seattle. The angle of attack sensor replaced in Bali would be analysed at its place of manufacture in Chicago, the accident investigator said.

(Reporting by Tim Hepher and David Shepardson; Additional reporting by Cindy Silviana in Jakarta, Jamie Freed in Singapore and Allison Lampert in Montreal; Editing by Himani Sarkar)

Image from www.boeing.com

Boeing, Airbus Fret Over China Trade War

ZHUHAI, China (Reuters) – The world’s two largest planemakers signaled on Tuesday that they were keen to see an end to a bruising trade war between Washington and Beijing, as China opened its largest airshow with a display that showcased its aviation ambitions.

Boeing (BA.N) and Airbus (AIR.PA) made their comments on the opening day of the biennial Airshow China, being held in the coastal city of Zhuhai from Nov. 6-11, that is traditionally an event for Beijing to parade its growing aviation prowess.

China has become a key hunting ground for deals for foreign aviation firms thanks to surging travel demand, but the outlook has been complicated by Beijing’s desire to grow its own champions in industries ranging from aviation to semiconductors to robots.

Its ties with the United States have in particular been strained. President Donald Trump criticizes China for what he sees as intellectual property theft, entry barriers to U.S. business and a gaping trade deficit, while Beijing calls the complaints unreasonable. The two sides have resorted to tit-for-tat tariffs on goods worth billions of dollars.

While U.S.-made aircraft, among America’s biggest exports to China, have so far escaped Beijing’s tariffs, analysts said they were still waiting to see what the trade war would spell for U.S. companies such as Boeing.

George Xu, the top China executive at Boeing’s biggest rival Airbus (AIR.PA), said at a news conference that the European planemaker did not expect a sales windfall from the tensions.

“I am Chinese and we don’t like this kind of trade war,” he said. “Nobody will be the winner in this kind of trade war.”

Airbus had hoped to close a deal for 184 aircraft during a trip to China by French President Emmanuel Macron in January, but negotiations appear to have stalled, industry sources say.

In carefully worded comments, Boeing’s senior vice-president of Northeast Asia sales, Rick Anderson, said China was a rapidly growing aviation market and that he believed Washington and Beijing understood that.

“We continue to engage with leaders of United States and China, and continue to urge productive conversation to resolve the trade discrepancies,” he said.

“We are optimistic for a quick solution.”

AMBITIONS ON DISPLAY

China and United States have in recent days stoked optimism that a breakthrough might be made, after Trump spoke by phone with President Xi Jinping last week.

The two countries have also announced that they will hold a delayed top-level security dialogue on Friday.

Still, Beijing has shown little sign of taming its ambitions to catch up with rivals like the United States, France and Germany in high-end technology.

Projects being showcased in Zhuhai included a full-scale mock-up of a widebody CR929 jet being jointly developed by Commercial Aircraft Corporation of China and Russia’s United Aircraft Corporation (UAC) in hopes of eventually competing with Boeing’s 787 and Airbus’ A350 jets.

The global market for widebody jets is estimated to be worth $2.5 trillion over the next two decades, according to Boeing, with the fleet size more than doubling to 9,180 jets.

Widebodies account for around 20 percent of projected global jet deliveries over that period but almost 40 percent by value.

Hundreds of spectators and industry executives at the airshow were also treated to a roaring flight demonstration that involved three of China’s Chengdu J-20 stealth fighters, which debuted at the show two years ago with a 60-second flypast.

China put the J-20 into service last year that experts say is a part of Beijing’s plan to narrow a military technology gap with the United States and its F-35 stealth fighter.

Sophisticated anti-aircraft batteries were also on display.

“If you tie those together with the J-20, the message is about Anti-Area Access Denial. It is not just about protecting the motherland but pushing the Americans away,” said aerospace analyst Sash Tusa of UK-based Agency Partners.

(Reporting by Brenda Goh, Stella Qiu and Tim Hepher; Writing by Brenda Goh; Editing by Himani Sarkar)

Is American Airlines Recession Proof?

In recent years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most vocal advocates of the idea that industry consolidation has permanently transformed the U.S. airline business. Whereas airlines have historically lost huge sums of money during periodic industry busts, Parker has boasted that American Airlines will never lose money again.

Yet on the surface, management’s optimistic outlook seems to clash with a trajectory of declining profits at American Airlines. If the company is struggling to maintain its profitability in a robust economy, one could reasonably wonder how it would do in an economic downturn. Indeed, American Airlines stock is down 38% year to date, so investors clearly are skeptical.

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Is American Airlines Recession Proof?

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