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Turkish Airlines, Boeing Reach 737 Max Compensation Deal

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)

Explosion at Kansas Aircraft Plant Injures 15 People

(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

Image from txtav.com

Norwegian Air Hoping for Boeing 737 MAX Compensation This Year

OSLO (Reuters) – Norwegian Air <NWARF> hopes to agree compensation from Boeing <BA> by year-end over the grounding of the 737 MAX, the airline’s acting CEO said, as it counts the costs of having 18 of the aircraft grounded since March.

“The dialogue (with Boeing) has been ongoing since summer and we hope to come to an understanding before the end of the year,” acting Chief Executive Geir Karlsen said in a podcast made on Dec. 11 and released by brokerage DNB Markets on Dec. 18.

Norwegian has 92 737 MAX aircraft on order.

“It’s about compensation and also about a new schedule of plane deliveries, as Boeing obviously can’t deliver in line with the contract … it’s a huge challenge for Boeing, and at the same time we also want the best possible outcome for ourselves,” Karlsen said.

(Reporting by Terje Solsvik, editing by Gwladys Fouche and Jason Neely)

Brazilian Airline GOL Says Delta Air Exits Stake

PRYCBK Delta airlines airplane preparing for landing in the blue sky at day time in international airport

Dec 11 (Reuters) – Brazil’s GOL Linhas Aereas Inteligentes SA said late Tuesday that Delta Air lines Inc has sold more than 32.9 million shares it held in the company, a few months after the Atlanta-based airline announced its decision to exit stake.

Delta’s decision to sell its stake was expected, following its acquisition of a 20% stake in GOL competitor LATAM Airlines Group SA for $1.9 billion in September.

Delta did not immediately respond to Reuters’ request for comment.

The deal with LATAM Airlines was Delta’s largest since it merged with Northwest Airlines a decade ago, and ended the Chilean carrier’s ties with American Airlines Group.

Delta’s deal with Latin America’s largest carrier would give it a bigger footprint in the region, where American Airlines has been leading the charts.

American Airlines confirmed in October it was negotiating a possible partnership with GOL, after a newspaper reported that the two companies were in contact the same day that Delta bought its stake in LATAM.

The structure or content of any potential partnership was unclear, Brazil’s Valor Economico said at the time.

(Reporting by Bhargav Acharya in Bengaluru, Editing by Sherry Jacob-Phillips)

Microsoft Beats Amazon for Pentagon $10 Billion Cloud Computing Contract

WASHINGTON, Oct 25 (Reuters) – Microsoft Corp. has won the Pentagon’s $10 billion cloud computing contract, the Defense Department said on Friday, beating out favorite Amazon.com Inc.

The contracting process had long been mired in conflict of interest allegations, even drawing the attention of President Donald Trump, who has publicly taken swipes at Amazon and its founder Jeff Bezos. Trump in August said his administration was reviewing Amazon’s bid after complaints from other companies.

The Joint Enterprise Defense Infrastructure Cloud (JEDI) contract is part of a broader digital modernization of the Pentagon meant to make it more technologically agile. Specifically, a goal of JEDI is to give the military better access to data and the cloud from battlefields and other remote locations.

Oracle Corp had expressed concerns about the award process for the contract, including the role of a former Amazon employee who worked on the project at the Defense Department but recused himself, then later left the Defense Department and returned to Amazon Web Services.

In a statement, an Amazon Web Services (AWS) spokesman said the company was “surprised about this conclusion.”

The company said that a “detailed assessment purely on the comparative offerings” would “clearly lead to a different conclusion,” according to the statement.

AWS is considering options for protesting the award, a person familiar with the matter told Reuters.

Although the Pentagon boasts the world’s most potent fighting force, its information technology remains woefully inadequate, according to many officials.

Officials have complained of having outdated computer systems and being unable to access files or share information as quickly as they might be able to in the private sector.

“If I am a warfighter, I want as much data as you could possibly give me,” Lieutenant General Jack Shanahan, the director of the Joint Artificial Intelligence Center, told reporters in August describing the importance of the contract.

Some companies were concerned that a single award would give the winner an unfair advantage in follow-on work. The Pentagon has said it planned to award future cloud deals to multiple contractors.

This week, U.S. Defense Secretary Mark Esper removed himself from reviewing the deal due to his adult son’s employment with one of the original contract applicants, IBM Corp. IBM had previously bid for the contract but had already been eliminated from the competition.

Microsoft said it was working on a comment. IBM and Oracle did not immediately return requests for comment.

In a book slated for publication Oct. 29, retired Navy commander Guy Snodgrass, who served as a speech writer to former Defense Secretary Jim Mattis, said Trump called Mattis and directed him to “screw Amazon” by preventing it from bidding on the JEDI contract, according to an excerpt of the book seen by Reuters ahead of its release.

“We’re not going to do that,” Mattis later told other Pentagon officials, according to the excerpt. “This will be done by the book, both legally and ethically.”

Snodgrass declined to comment pending the release of his book.

In a statement announcing Microsoft as the winner, the Pentagon underscored its view that the competition was conducted fairly and legally.

“All (offers) were treated fairly and evaluated consistently with the solicitation’s stated evaluation criteria. Prior to the award, the department conferred with the DOD Inspector General, which informed the decision to proceed,” it said.

Microsoft shares were up 3% to $144.98 in after-hours trading after the news. Amazon shares were down 0.92% to $1,745.12.

The Pentagon said it had awarded more than $11 billion across 10 separate cloud contracts over the past two years.

“As we continue to execute the DOD Cloud Strategy, additional contracts are planned for both cloud services and complementary migration and integration solutions necessary to achieve effective cloud adoption,” the Pentagon said.

(Additional reporting by Stephen Nellis and Jeffrey Dastin in San Francisco Reporting by Phil Stewart in Washington; Editing by Cynthia Osterman, Sonya Hepinstall and Lincoln Feast)

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