FILE PHOTO: Michael O’Leary of Ryanair at the Four Courts in Dublin
BERLIN (Reuters) – Ryanair <RYAAY> is prepared for further delays to the delivery of its Boeing <BA> 737 MAX airliners, its chief executive Michael O’Leary told German magazine Wirtschaftswoche, adding that he would only discuss compensation after the aircraft had been delivered.
The 737 MAX airliner has been grounded since March following two crashes which claimed 346 lives.
One of the world’s largest airlines, Ryanair has ordered 135 of the jets.
“We were meant to have 58 planes by the summer,” O’Leary said in the interview, extracts from which were published on Friday. “That went down to 30, then 20, then 10 and the latest is maybe only five. It’s possible we’ll only get the first jets in October 2020.”
In contrast to other airlines, including Turkish, Southwest Airlines <LUV> and Germany’s TUI <TUIFY>, which have already agreed compensation with Boeing, O’Leary added that he would only discuss compensation after the planes were delivered.
(Reporting by Thomas Escritt; editing by Thomas Seythal)
FILE PHOTO: Boeing 737 Max aircraft at Boeing’s 737 Max production facility in Renton
ISTANBUL (Reuters) – Turkish Airlines and Boeing have come to an agreement concerning compensation for certain losses caused by grounded and undelivered Boeing 737 Max aircraft, the Turkish airline said on Tuesday.
The statement to the Istanbul stock exchange did not specify the value of the deal. The airline has 24 Boeing 737 MAX planes in its fleet. The 737 MAX has been grounded since March after two crashes in Indonesia and Ethiopia killed 346 people within five months.
(Reporting by Ceyda Caglayan; Editing by Daren Butler)
(Reuters) – At least 15 people were injured on Friday after a liquid nitrogen line exploded at a Textron Aviation plant near Wichita, Kansas, potentially setting back the launch of a new aircraft under development, county and company officials said.
Image from dailymail.co.uk
Emergency medical services took 11 people to the hospital, one of them suffering potentially serious injuries, Dr. John Gallagher, director of Sedgwick County EMS, told a news conference.
Company officials said two of victims went to the hospital in private cars and two were treated at the scene.
Injuries were limited because only a skeleton crew was on duty during the holidays, said Deputy Chief Daniel Wegner of the Sedgwick County Fire Department.
The explosion in a 3-inch liquid nitrogen gas line also damaged a storage tank, causing nitrogen gas to vent out of the building, Wegner said.
News video from the scene showed what appeared to be a steam cloud billowing out of the damaged building. The gas was not harmful, Wegner said.
A second valve also ruptured, said Kate Flavin, a spokeswoman for Sedgwick County, and emergency crews vented nitrogen gas from the affected tanks before doing another search of the plant.
No others were found injured and control of the facility was returned to Textron shortly after noon, but emergency crews remained on standby at the scene, she said.
Damage was contained to Plant 3, a site for composite manufacturing and experimental aircraft fabrication including that of the SkyCourier, said Stephanie Harder, a spokeswoman for Textron.
The SkyCourier, a utility turboprop under development, is due to enter service in 2020, Textron has previously said. Harder said it was too early to determine what damage the prototype aircraft under production may have suffered.
Textron Aviation, a unit of Textron Inc (TXT), makes Beechcraft and Cessna aircraft.
The Wichita-area economy has long been supported by aircraft manufacturing. Boeing Co (BA) announced in January it would suspend production of its 737 Max jetliner, which has been grounded worldwide after two fatal crashes. That move affected workers at Spirit AeroSystems in Wichita, Boeing’s top supplier, which produces the jet’s fuselages.
Reporting by Daniel Trotta, Additional reporting by Rich McKay; Editing by Daniel Wallis, Bill Tarrant and Richard Chang
BEIJING (Reuters) – The sixth prototype of China’s home-built C919 narrowbody passenger plane completed its first test flight on Friday, marking a milestone in the programme’s testing schedule as China races to compete with Airbus SE and Boeing Co.
The sixth prototype is the last test plane its manufacturer, the Commercial Aircraft Corp of China Ltd (COMAC), has planned for the programme and was scheduled to fly before the year-end. Currently, there are five test planes that are conducting test flights elsewhere in the country.
The maiden flight on Friday from Shanghai lasted two hours and five minutes, COMAC said in a press release, adding that the jet will be conducting more test flights with a focus on cabin, lighting and external noises.
COMAC has already started production of aircraft parts which will be used for the first batch of aircraft deliveries, it said.
The state manufacturer is aiming to obtain Chinese certification for the C919 in 2021, but the date was subject to regulatory approval and the aircraft’s safety remains a top priority, according to COMAC officials.
He Dongfeng, the Communist Party boss of COMAC, wrote in a state-owned newspaper in December that aircraft safety is key to the survival of COMAC.
Designed to compete directly with the Airbus 320 and the Boeing 737 families in the market for jets with around 150 seats, the C919 is the speartip of China’s efforts to break a powerful decades-old Western duopoly.
The Boeing 737 MAX remains globally grounded following two fatal crashes that killed a total of 346 people.
(Reporting by Stella Qiu and Brenda Goh; Editing by Muralikumar Anantharaman)
WASHINGTON (Reuters) – U.S. President Donald Trump called Boeing <BA> Chief Executive Dennis Muilenburg this week to ask about the status of 737 MAX production, two people briefed on the matter confirmed.
The call on Sunday was brief and Muilenburg assured Trump that the planned production halt was temporary and that the company would not be laying off any workers. The production halt, set to begin in January, was announced by Boeing Monday after a board meeting.
Boeing and the White House declined to comment on the call, reported earlier by the New York Times.
Separately, S&P Global Ratings on Thursday downgraded Boeing’s credit rating to “A-” from “A” and lowered the short-term rating to “A-2” from “A-1.”
The change “reflects the uncertainty over when the 737 MAX will return to service, the risk to the supply chain from the planned production halt, and possible long-term impact to Boeing’s competitive position.”
U.S. officials have repeatedly said they are waiting for additional answers from Boeing and have at time faulted the quality of submissions from the planemaker since the plane was grounded in March after two fatal crashes killed 346 people.
“We’ve had conversations about the importance of making sure that we are looking at complete documentation and not piecemeal documentation,” FAA Administrator Steve Dickson told Reuters in September. “It’s really better to be very methodical and very detailed rather than try to rush a partially completed product and then say, ‘We’ll get back to you with the rest of it.’”
Boeing has repeatedly said it is working with regulators to safely return the plane to service and acknowledged last week it would not occur until 2020.
Dickson said last week there are nearly a dozen milestones that must be completed before the MAX returns to service. Approval is not likely until at least February and could be delayed until March, U.S. officials told Reuters last week.
American Airlines Group Inc <AAL> and Southwest Airlines Co <LUV> have canceled flights into April because of the grounding.
(Reporting by David Shepardson; Editing by Nick Zieminski)
FILE PHOTO: A passenger stands in front of a window where Qantas planes are parked at Melbourne Airport, Australia
SYDNEY (Reuters) – Qantas Airways Ltd <QABSY> said on Friday it has chosen Airbus SE <EADSY> as preferred supplier for jets capable of the world’s longest commercial flights from Sydney to London, beating rival Boeing Co <BA> after a hard-fought contest.
The choice of up to 12 A350-1000 planes fitted with an extra fuel tank for flights of up to 21 hours cements Airbus as the leader in ultra-long haul flying globally at a time when Boeing is battling delays on its rival 777X programme and a broader corporate crisis following two deadly 737 MAX crashes.
The Qantas flights would begin in the first half of 2023, but remain subject to reaching a pay deal with pilots, who would need to extend their duty times to around 23 hours to account for potential delays and switch between flying the A350 and the airline’s current A330 fleet. A final decision on an order is expected in March, the airline said.
Qantas Chief Executive Alan Joyce said the airline “had a lot of confidence” in the market for non-stop services from Sydney to London and to New York based on two years of flying non-stop from Perth to London, where it has achieved a 30% fare premium over one-stop rivals in premium classes.
“The A350 is a fantastic aircraft and the deal on the table with Airbus gives us the best possible combination of commercial terms, fuel efficiency, operating cost and customer experience,” he said.
Singapore Airlines Ltd <SINGY> operates the world’s current longest flight, nearly 19 hours from Singapore to New York, using an ultra-long range version of the smaller A350-900.
Airbus Chief Commercial Officer Christian Scherer thanked Qantas for its selection in a statement, while a Boeing spokesman said it was disappointed with the decision but looked forward to continuing its longstanding partnership with the airline.
Rico Merkert, a transport professor at the University of Sydney Business School, said the A350-1000 fit the Qantas brief well and was the safer choice, given Boeing has recently reported problems such as the grounding of the 737 MAX, structural cracks in 737 NGs and a fuselage split in a stress test of its 777-9.
“The A350 just seems to be a much safer bet,” he said. “And safety is at the core of everything that Qantas does including its brand.”
Airbus no longer provides list prices for aircraft, but based on its 2018 price list, the Qantas order could be worth up to $4.4 billion before heavy discounts that are standard for airline customers.
Citi on Friday estimated the planes would cost A$3 billion (1.6 billion pounds) to $3.5 billion, with the investment likely to be phased over three years.
The selection of the A350-1000 will add to growing doubts over Boeing’s plans to produce the 777-8 that it had proposed to Qantas for the mission.
Boeing had already said the entry into service for the plane, a smaller, longer-range version of the 777-9, would be delayed beyond 2022 but has declined to give a new date, saying it would be based on customer demand.
Customers Emirates and Qatar Airways have indicated they could switch orders for the 777-8 to the 777-9.
The 777-9 is due to enter service in 2021, following delays associated with its GE <GE.N> engines.
The Boeing spokesman said on Friday the manufacturer was focused on the development of the 777-9 and after that it would complete development of the 777-8, with the first delivery scheduled a few years after that.
(Reporting by Jamie Freed; Editing by Sam Holmes and Stephen Coates)
An Airbus A350-1000 performs at the 53rd International Paris Air Show at Le Bourget Airport near Paris
WASHINGTON, Dec 9 (Reuters) – A former Boeing Co employee who warned of problems with 737 production will testify on Wednesday at a U.S. House hearing on the Federal Aviation Administration review of the grounded 737 MAX.
The aircraft has been grounded since March after two fatal crashes in five months killed 346 people. Federal officials say the FAA is not expected to authorize the plane to fly until January at the earliest.
Former Boeing employee Edward Pierson, who had worked as a senior operations manager in the flight test and evaluation unit, will testify before the U.S. House Transportation and Infrastructure Committee, the panel said in a notice.
Pierson’s concerns were referenced at an Oct. 30 hearing — though he had not been named previously.
“All my internal warning bells are going off and for the first time in my life, I’m sorry to say that I’m hesitant about putting my family on a Boeing airplane,” Pierson wrote to Boeing management in mid-2018 before the first crash, according to an email obtained by the committee. He warned “the alternative of rushing to build is far riskier.”
Boeing spokesman Gordon Johndroe said Monday that “although Mr. Pierson did not provide specific information or detail about any particular defect or quality issue, Boeing took his concerns about 737 production disruption seriously.” He added that after Pierson retired and raised the issue again as recently as this year “those concerns received renewed scrutiny at the highest levels of the company.”
Johndroe added “the suggestion by Mr. Pierson of a link between his concerns and the recent MAX accidents is completely unfounded.”
Pierson could not immediately be reached on Monday.
Representative Albio Sires, a Democrat, on Oct. 30, questioned Boeing CEO Dennis Muilenburg about concerns raised by a Boeing employee about Boeing’s 737 production and his recommendation that production be halted. Sires said the employee wrote directly to Muilenburg in December 2018 after he had retired.
Johndroe confirmed Monday Pierson was the employee referenced by Sires.
“He raised some good concerns. We went back and took a look at his concerns and in some cases we identified areas where we thought his issues had already been addressed,” Muilenburg said at the hearing. Boeing did not slow production after Pierson’s concerns.
FAA Administrator Steve Dickson, FAA Aircraft Certification Service Executive Director Earl Lawrence and a member of the FAA’s Technical Advisory Board, Matt Kiefer, as well as former FAA employee G. Michael Collins will also testify.
(Reporting by David Shepardson; Editing by Dan Grebler and Lisa Shumaker)
PARIS, Dec 5 (Reuters) – Airbus must hand a record number of aircraft to customers in December to meet delivery goals, company data showed on Thursday, and is all but certain of winning an annual order race against Boeing.
The European planemaker has been facing production snags in its best-selling A321neo jet, due in part to the introduction of a complex new flexible cabin, but has said it is confident of meeting a goal of 860 jets in 2019, revised down from 880-890.
To reach that target it must deliver 135 jets in December, beating a previous record of 127 December deliveries by 6%.
Airbus delivered 77 aircraft in November to reach 725 for the year so far, according to Thursday’s progress report.
Airbus has a track record of achieving a late surge in deliveries, though it is also working to spread deliveries more evenly over the year in future to smooth earnings and avoid quality problems that can creep in when it is working flat out.
Whether or not it meets targets, Airbus is set to regain the crown as the world’s largest commercial plane producer this year as U.S. rival Boeing approaches nine months without deliveries of its 737 MAX, grounded after two crashes.
Boeing is expected to jump back into the lead next year as projected deliveries include 737 MAX jets parked during the grounding, while remaining ahead on larger jets, but the timing of the 737 MAX return to service depends on global regulators.
Airbus is also on course to win an annual order contest between the plane giants after booking orders for 222 aircraft in November, driven mainly by last month’s Dubai Airshow.
Emirates ordered 50 A350-900 jets at the show as part of a fleet shake-up that also saw the world’s largest wide-body operator cut a remaining order for A380s and reduce its requirement for Boeing 777X jets, while adding the Boeing 787.
Airbus sold a total of 940 jets in January-November, or 718 after cancellations, leaving it well ahead of Boeing, whose year has been derailed by the grounding of the 737 MAX. In the latest period for which data is available, Boeing sold 180 jets in the first nine months or 45 after cancellations.
The latest figures were released days after Airbus won a sale of 50 A321XLR jets to United Airlines, narrowing the potential market for a mid-market plane that Boeing has been studying, while slowing those discussions during the MAX crisis.
United also delayed delivery of 45 A350s by several years to 2027 and beyond. UK analysts Agency Partners said on Thursday that this could put pressure on A350 output in coming years.
(Reporting by Tim Hepher; Editing by Giles Elgood and Andrew Heavens)
CHICAGO, Dec 3 (Reuters) – United Airlines Holdings Inc announced on Tuesday an order for 50 Airbus SE A321XLR jets to fly between the U.S East Coast and Europe, becoming the latest U.S. airline to ink a deal for the European planemaker’s new passenger jet.
The long-range A321XLR jets will replace United’s 53 Boeing 757-200 planes beginning in 2024, the Chicago-based planemaker said, flying to cities like Porto, Portugal and other potential new destinations.
United’s 757 planes will reach the end of their lifespan in about a decade and Boeing Co is not building any more of the large single-aisle model.
Instead, the U.S. planemaker has been considering a new twin-aisle plane, provisionally known as the NMA, but has delayed a launch decision until 2020 while it manages the ongoing global grounding of its 737 MAX jets following two fatal crashes.
United’s chief operating officer Andrew Nocella told reporters the airline has worked closely with Boeing on the potential new aircraft and is still open to orders if the planemaker decides to move forward with developing the NMA.
Meanwhile, U.S carriers including American Airlines Group Inc, JetBlue Airways Corp and Spirit Airlines Inc have agreed orders for Airbus A320neo-family jets.
Among the benefits of the A321XLR is a 30% lower fuel burn per seat compared to previous generation aircraft, United said.
United has also ordered the larger A350 widebody jets but said it is deferring delivery of those jets until they are needed in 2027.
Its A321XLR order is the second for a U.S. carrier following tariffs that the United States is imposing on European-made aircraft.
(Reporting by Tracy Rucinski Editing by Chris Reese and Michael Perry)
FILE PHOTO: A number of grounded Southwest Airlines Boeing 737 MAX 8 aircraft are shown parked at Victorville Airport in Victorville, California
CHICAGO (Reuters) – Boeing Co <BA> this week will present to the board of its largest 737 MAX customer, Southwest Airlines Co <LUV>, an overview of its plans to return the grounded jet to service, a spokesman for the airline said on Monday.
The meeting on Wednesday and Thursday comes after Southwest Chief Executive Gary Kelly said last month that the airline could look next year at diversifying its fleet beyond Boeing 737 aircraft. Budget-friendly Southwest has structured its business model around flying only 737 aircraft for the past 50 years and bet its entire growth strategy on the 737 MAX, the latest iteration of Boeing’s narrowbody workhorse.
With the MAX parked since mid-March following crashes on Lion Air and Ethiopian Airlines that together killed 346 people, Southwest has had to scale back its growth plans and cancel north of 100 daily flights, wiping $435 million from its earnings between January and September.
Kelly, who is also Southwest’s chairman of the board, invited Boeing to address the timing and logistics of dozens of 737 MAX deliveries that it was supposed to receive this year. The meeting will also give Boeing a chance to defend its product and the steps it is taking to restore public confidence after the two fatal crashes, sources said.
“It’s an overview of the Return to Service Plan, timing, and plans moving forward,” Southwest spokesman Chris Mainz said. “Just a good chance for our Board to hear directly from Boeing, but nothing more to it than that.”
It is not the first time that Boeing has presented to a regularly scheduled board meeting, he said.
Southwest had 34 MAX jets in its fleet when global regulators grounded the aircraft in March. The airline was supposed to receive 41 more 737 MAX planes before the end of the year, but most of those deliveries are now scheduled for 2020.
Hundreds of undelivered 737 MAX jets are parked at Boeing facilities in Washington state, where the planemaker is facing a delivery logjam once the U.S. Federal Aviation Administration gives approval for them to fly commercially.
While Boeing is targeting approval in December, the FAA has pushed back on any fixed timeline.
Southwest has removed the 737 MAX from its flying schedule until early March. The airline has said it will need one to two months to train its pilots and prepare the jets for flight once regulators approve new software and pilot training.
(Reporting by Tracy Rucinski in Chicago; Additional reporting by Tim Hepher in Dubai; Editing by Matthew Lewis)
