Tag: crash (Page 4 of 8)

Aeroflot Scales Back Superjet Flights After Fatal Crash

June 3, 2019 / WIL BALDWIN

Sukhoi plane crash-landed on May 5, killing 41
Investigation into crash is ongoing
Aeroflot has flown at least 129 fewer Sukhoi flights since the crash
Petition to ground plane has over 200,000 signatures

MOSCOW, June 3 (Reuters) – Russian airline Aeroflot has scaled back the number of Sukhoi Superjet 100 flights it operates after one of its planes made a crash-landing last month, killing 41 people, according to data provided by a flight tracking website.

Flightradar24 data shows Aeroflot has also at times substituted Airbus or Boeing planes for the Superjet, the first new passenger jet developed in Russia since the Soviet Union collapsed.

Fallout from the crash risks undermining the aircraft’s reputation at a time when Russia is promoting another domestically made passenger plane, the M-21, as a rival to Boeing and Airbus.

Aeroflot and Sukhoi Civil Aircraft, the Superjet’s maker, declined to comment on the data or on the use of other aircraft instead of the Russian plane. Both the airline, Russia’s national flag carrier, and the manufacturer have said in the past that the aircraft meets all relevant international safety standards and will continue to be made and used.

The cause of the May 5 crash, the second deadly accident involving the Superjet in nine years of service, has not yet been established. Russian authorities said afterwards there was no reason to ground the Superjet.

Yet Aeroflot flew 129 – or about 7% – fewer Superjet flights in the two weeks after the crash than in the previous fortnight, the Flightradar24 data showed.

In one case, frightened passengers on a Sukhoi refused to continue their journey after an aborted take-off, forcing Aeroflot to lay on an Airbus instead, an airline industry source with direct knowledge of the matter said, a version of events corroborated separately by Russia’s RIA news agency.

Aeroflot after the crash began paying extra attention to safety checks and to scale back the Superjet’s usage to try to reassure passengers, the same source said.

More than 213,000 people have signed a petition demanding the plane be grounded since May 5.

‘WHO NEEDS IT?’

Some Russian and foreign operators have complained about the difficulty of servicing the Superjet due to delays in sourcing spare parts. Irish airline CityJet and Belgian carrier Brussels Airlines turned their back on the Superjet citing those reasons.

State officials and airline executives say the airliner spends about half its time on the ground undergoing maintenance, and can fly only about a third as much as foreign-made rivals in a 24-hour period when in use.

They blame a lack of readily available spare parts and the complexity of servicing its engines.

Vitaly Savelyev, Aeroflot’s CEO, told Russian news agency TASS in 2017 that his company, which is majority-owned by the Russian state, might not have bought the Superjet at all if it was a private company.

Aeroflot, which has promised to buy a further 100 Superjets on top of the 49 it has already, is in a difficult situation because of the project’s political importance for Russia.

There are signs however that even some allies of President Vladimir Putin are growing weary of the aircraft.

Valentina Matviyenko, speaker of the upper house of parliament, in November publicly rebuked the transport minister over the large sums she said had been pumped into the Superjet in vain.

Russian newspaper Novaya Gazeta estimated in 2012 that $7 billion had been spent on the project, while Sukhoi has put the figure at $2 billion.

“Who needs it? … It’s not good for anything,” said Matviyenko. “Aeroflot says we bought them and they sit on the ground. Nobody abroad is buying them … What have we achieved?”

Mexican low-cost carrier Interjet, citing maintenance and parts problems, told Mexican daily newspaper El Universal just over a week after the crash that it was trying to sell its 20 Superjets and favoured Airbus 320s instead.

Regional carrier Yamal Airlines, Russia’s second biggest Superjet operator after Aeroflot, said a day after the crash that it was cancelling its planned purchase of 10 of the planes. It cited high servicing costs.

And RusLine, another regional carrier, told Kommersant it was scrapping provisional plans to obtain 18 Superjets as part of a leasing deal. The paper cited RusLine’s owner Nikolai Ulan as saying he thought the plane was safe but that passengers would be afraid to fly on it, making it harder for him to break even. RusLine did not respond to a request for comment.

PASSENGER FEARS

The Superjet, which entered service in 2011, is predominantly operated inside Russia by regional airlines, corporations and government entities. Sukhoi had hoped to sell hundreds, but slack demand means only 138 of the planes are in use.

On the Moscow-Murmansk route, the one taken by the plane involved in the fatal crash, Aeroflot replaced the Superjet with either Boeing 737s or Airbus A320s in the five days after the accident, a practice it partially continued the week after.

This was done in direct response to the crash in order to try to calm passenger fears, the same airline source said.

There have been a spate of safety-related incidents and cancellations since May 5.

In one case, a Superjet flight from Moscow to Riga was held up after passengers noticed a burning smell and demanded a new plane. Engineers found nothing wrong, one of the passengers told state TV.

In another, on May 18, passengers on a Moscow-bound flight from the city of Ulyanovsk took fright after their Superjet aborted take-off because of a warning about the hydraulic system.

“Passengers were told that the flight was being delayed for technical reasons. Of course, after the catastrophe, they started to panic and refused to fly on the same plane. The psychological factor came into play,” the airline source with direct knowledge of the situation told Reuters.

Aeroflot flew the passengers to Moscow the next day on an Airbus A320 and engineers found nothing wrong with the Superjet involved in that incident either, the transport prosecutor’s office said.

Yevgeny Dietrich, Russia’s transport minister, said the situation was not “radically changed” from the pre-crash period.

“In fact, delays and cancellations occurred previously. You simply wrote about them less,” Dietrich told reporters.

His statement and the crash have highlighted the fact that many Superjets do not fly very often.

Flightradar24 data shows that 37 of 127 Superjets in commercial use globally did not make a single flight from April 22 until May 19, and that 45 did not make more than 10 flights during that period.

That tallies with expert reports, which have said foreign-made planes in Russia average nine hours flying time in every 24-hour period compared to between just three and four hours for the Superjet.

The same industry source said only about 50% of Aeroflot’s Superjets flew regularly and that Superjet pilots, who are paid for completed flights, had their salaries topped up to compensate for time spent on the ground.

(Writing by Andrew Osborn and Gleb Stolyarov; Editing by Giles Elgood)

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)

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)

Alaska Mid-Air Seaplane Crash Leaves 6 Dead

May 14, 2019 / WIL BALDWIN

ANCHORAGE, Alaska (Reuters) – Searchers found the bodies of the last two Alaska seaplane crash victims on Tuesday evening, after a hunt through the debris and frigid waters following a mid-air collision that left a total of six people dead and 10 injured, officials said.

“The last two people were found. They were found deceased,” said U.S. Coast Guard Chief Petty Officer Matthew Schofield.

The discovery of the bodies closes the search at the scene where the two seaplanes crashed after colliding over the inlet waters near Ketchikan, in southeastern Alaska, Schofield said.

Work at the crash site will now shift to an investigation into what led the two planes, which were ferrying Princess Cruises passengers on sightseeing expeditions, to strike each other and fall into the waters of George Inlet.

A team of 14 National Transportation Safety Board investigators has been sent to the site and divers will start working on Wednesday to pull up the wreckage of the two planes.

The two missing people, an Australian and a Canadian, were among 14 passengers from a Princess Cruises ship who boarded two seaplanes operated by separate tour companies in the town of Ketchikan on Monday, the cruise line said.

A 14-member team from the NTSB began investigating the crash on Tuesday and is unlikely to determine the cause during the week the team will be at the scene, NTSB board member Jennifer Homendy told a news conference.

Ten people survived but were injured in the collision, which took place over open water during daylight, the Coast Guard said. The dead include one of the pilots. The victims were not immediately identified.

Three of the injured were in serious condition and seven in fair condition, Dr Peter Rice, medical director of the PeaceHealth Ketchikan Medical Center, told a separate news conference.

The water temperature off Ketchikan on Tuesday was 48 Fahrenheit, according to the National Weather Service. Expected survival time in 40-50F (4-10C) is one to three hours, according to the United States Search & Rescue Task Force website.

The investigators will be collecting information from the survivors, the Federal Aviation Administration, any other witnesses who might have been in the area, flight logs, training records and other sources, including the wrecked planes, Homendy said.

“We still have to recover the planes and then we have to look at those. It takes some significant work to really understand how the two came together,” she said.

All of the planes’ passengers arrived in Ketchikan on the cruise ship Royal Princess during a seven-day trip between Vancouver, British Columbia, and Anchorage, Alaska, Princess Cruises said.

Ten passengers and a pilot were aboard one float plane, a de Havilland Otter DHC-3, operated by Taquan Air. Four passengers and a pilot were aboard the second float plane, a de Havilland DHC-2 Beaver, run by Mountain Air Service of Ketchikan.

The crash site, at Coon Cove about 300 miles (480 km) south of Juneau, Alaska’s capital, lies near a tourist lodge that runs excursions to the nearby Misty Fjords National Monument.

Ketchikan-based Taquan Air said the plane was returning from a sightseeing tour of Misty Fjords when the crash occurred.

Reporting by Yereth Rosen in Anchorage; additional reporting by Rich McKay in Atlanta and Barbara Goldberg in New York; Editing by Bill Tarrant, Cynthia Osterman and Leslie Adler

Biman Bangladesh Airplane Skids Off Runway in Yangon

May 9, 2019 / WIL BALDWIN

YANGON (Reuters) – A Biman Bangladesh Airlines plane skidded off the runway when it landed in bad weather at Yangon’s international airport on Wednesday evening, injuring at least 17 people, officials said.

The Bombardier Dash 8 aircraft was carrying 29 passengers and four crew when it bounced while landing during heavy winds in Myanmar’s commercial capital, Bangladesh’s ambassador said. The plane was severely damaged.

The 17 who sustained mostly minor injuries were admitted to a local hospital, Manjurul Karim Khan Chowdhury, told Reuters.

“The main reason, the pilot told me, was the weather – crosswinds,” he said, “When he was trying to land… suddenly the aircraft jumped, went up and went down heavily.”

A photo published by the Myanmar Times showed the plane halfway off the runway with its fuselage apparently broken.

Shakil Miraj, general manager for Biman Bangladesh, also blamed bad weather for the crash.

The airline flies between Yangon and Bangladesh’s capital Dhaka four days a week.

A spokesman for Myanmar’s Department of Civil Aviation declined to comment, saying the department had not received a report of the incident from the ground.

Reporting by Thu Thu Aung, Simon Lewis, and Poppy McPherson in Yangon and Ruma Paul in Dhaka; Editing by Frances Kerry and John Stonestreet

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)

No Survivors Found in Mexico Crash of Jet Carrying 13 People

May 7, 2019 / WIL BALDWIN

MEXICO CITY (Reuters) – All 13 people aboard were killed when a private jet crashed between the U.S. city of Las Vegas and Monterrey in northern Mexico, authorities said on Monday.

The wreckage of the plane was found via aerial surveillance in a remote mountainous zone in the northern municipality of Ocampo, the government of Coahuila state said in a statement.

A photograph published on local television network Milenio showed what it said were the burnt remnants of the plane, broken into pieces, spread over charred earth.

The Coahuila government said the flight plan listed 13 people on board. It said no survivors were found.

Mexican media reported that the passengers had been to a boxing match between Mexican boxer Saul “Canelo” Alvarez and U.S. fighter Daniel Jacobs in Las Vegas on Saturday.

The nationalities of the victims were not immediately clear. The surnames of the three crew and 10 passengers published by the Coahuila government were all Hispanic.

The victims were aged between 57 and 19, according to a version of the passenger list published in Mexican media.

Newspaper Diario de Yucatan said on its website that among the victims were 55-year-old businessman Luis Octavio Reyes Dominguez, his wife, and their three children.

In a statement, Canada’s Bombardier Inc identified the jet as a Challenger 601 and said the plane had gone missing about 150 nautical miles from the northern Mexican city of Monclova.

Expressing its condolences to the victims, the company said it had been in touch with Canada’s transportation safety board and would work with the investigating authorities.

Mexican broadcaster Televisa reported the twin-engine jet lost contact on Sunday with air traffic controllers sometime after 5:20 p.m. local time (2220 GMT) as the pilot descended to avoid a storm.

Francisco Martinez, an emergency services official in Coahuila, told Milenio recent adverse weather conditions would form part of the investigation into the crash. However, he stopped short of saying weather had caused it.

(Reporting by Daina Beth Solomon, Noe Torres, Ana Isabel Martinez, David Alire Garcia and Allison Lampert; Editing by David Gregorio and Tom Brown)

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)

Sukhoi Superjet 100 Involved in Deadly Fire

May 6, 2019 / WIL BALDWIN

This image taken from a video distributed by Russian Investigative Committee on Sunday, May 5, 2019, shows the Sukhoi SSJ100 aircraft of Aeroflot Airlines on fire, at Sheremetyevo airport, outside Moscow, Russia. At least 40 people died when an Aeroflot airliner burst into flames while making an emergency landing at Moscow’s Sheremetyevo airport, officials said early Monday. (The Investigative Committee of the Russian Federation via AP)

FRANKFURT, Germany (AP) — The Aeroflot-operated SSJ100 passenger jet that caught fire during an emergency landing in Moscow is part of Russia’s efforts to maintain a presence in civil aviation in a market dominated by companies like Boeing, Airbus and Embraer.

Here’s a quick look at the SSJ100 and the Russian company that built it, the Sukhoi Civil Aircraft Company:

THE PLANE

The SSJ100, or Superjet 100, is a short- to medium-haul narrow body jet with two engines that can be configured to carry up to 103 people.

At that size, it’s intended to substitute for larger planes such as the Boeing 737 or Airbus 321 on shorter, less travelled routes and during slower travel seasons. Regional aircraft are an important part of Russia’s transportation system, given the country’s enormous distances and many remote towns. The Superjet succeeds older, Soviet-built planes such as the Tu-134 airliner.

The plane is built at the Sukhoi Civil Aircraft Company’s plant in Komsomolsk-on-Amur in Russia’s distant Far East region. Although the design is Russian, the company says it uses the latest Western technology as well. The engines are made by PowerJet, a joint venture between France’s Safran Aircraft Engines and Russia’s Saturn.

The Sukhoi Superjet 100 aircraft of Airflot Airlines, center, is seen after an emergency landing in Sheremetyevo airport in Moscow, Russia, Sunday, May 5, 2019. (Moscow News Agency photo via AP)

The plane first flew in 2008 and entered commercial service in 2011. It is certified by the European Union Safety Agency but is mainly used in Russia and has not made much headway against international competitors, not just from Boeing and Airbus but also from Brazil’s Embraer.

Aeroflot is the biggest client with 50 of the planes. Mexico’s Interjet said Sunday it operated five of the planes “under the highest safety standards.”

Interjet earlier operated 22 Superjets but referred in a recent earnings report to the “gradual phase out of the fleet of SSJ100.” The company reported lost sales after the planes were grounded due to a defect in the tail section in December 2016 and said it was seeking “contractual recovery of amounts related to maintenance costs” for the planes.

Ireland’s CityJet, which supplies planes and crews to other airlines, stopped operating several Superjets in January.

People gather around the damaged Sukhoi SSJ100 aircraft of Aeroflot Airlines at Sheremetyevo airport, outside Moscow, Russia, Monday, May 6, 2019. Russia’s main investigative body says both flight recorders have been recovered from the plane that caught fire while making an emergency landing at Moscow’s Sheremetyevo Airport, killing at least 40 people on Sunday. (AP Photo/Pavel Golovkin)

THE COMPANY

The Sukhoi Civil Aircraft Company bears the name of the legendary Soviet aircraft designer, Pavel Sukhoi, who was responsible for a series of Soviet military aircraft starting before World War II.

Today’s firm is part of Russia’s United Aircraft Company, which consolidated many of the legendary names of Soviet aviation such as MiG, Sukhoi, Tupolev and Yak. UAC was established by a decree from President Vladimir Putin in 2006 to promote the Russian aircraft industry, which is seen as essential for the security and defense of the country. Much of its production goes to the military, while the SSJ100 is the key project aimed at maintaining a Russian presence in civil aviation.

TROUBLES

On May 9, 2012, a demonstration flight hit Mount Salak in Indonesia, killing all 45 on board, after the pilot disregarded six alarms from the terrain warning system on the apparent assumption there was a problem with the terrain database, according to the report from Indonesia’s air safety regulator. The plane had unintentionally left a circling pattern after the crew was distracted by a prolonged conversation not related to flying the plane.

And a Superjet skidded off the runway at Iceland’s Keflavik airport in 2013 with landing gear up during flight certification tests involving landing on one engine; one crew member suffered minor injuries.

In this photo taken on Tuesday, April 30, 2019, the Sukhoi SSJ-100 aircraft of Aeroflot Airlines that made an emergency landing on Sunday, May 5, 2019 in Moscow’s Sheremetyevo airport, takes off from the Siberian city of Tyumen, Russia. Russia’s flagship airline Aeroflot says the plane that caught fire at Moscow’s Sheremetyevo Airport, killing at least one person, had been forced to turn back after taking off for the city of Murmansk because of technical reasons. (AP Photo/Marina Lystseva)

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)

Archives