April 29 (Reuters) – Boeing Co said on Monday it did not “intentionally or otherwise” deactivate a safety alert for its angle-of-attack sensors on its 737 MAX aircraft, responding to reports the planemaker failed to tell Southwest Airlines Co and the U.S aviation regulator that the safety feature was deactivated before recent crashes.
“The disagree alert was tied or linked into the angle of attack indicator, which is an optional feature on the MAX. Unless an airline opted for the angle of attack indicator, the disagree alert was not operable,” Boeing said in a statement.
It said the disagree alert is not necessary for the safe operation of the airplane.
The company said following software modifications all new MAX aircraft will have an activated and operable disagree alert and an optional angle of attack indicator, while current MAX airplanes will have the ability to activate the disagree alert.
Boeing Chief Executive Officer Dennis Muilenburg was grilled at a press conference earlier on Monday, following two fatal crashes of the 737 MAX plane.
(Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila)
WASHINGTON (Reuters) – U.S. Transportation Secretary Elaine Chao said on Monday she named four experts to a blue-ribbon committee to review the Federal Aviation Administration’s (FAA) aircraft certification process after two deadly Boeing 737 MAX crashes killed nearly 350 people.
Chao said she was naming NASA’s former aviation safety program director Amy Pritchett and Gretchen Haskins, chief executive of HeliOffshore Ltd, an international expert in aviation safety and a former U.S. Air Force officer.
She also named Kenneth Hylander, chief safety officer at Amtrak and a former senior safety executive at Delta and Northwest airlines, and J. David Grizzle, chairman of the board of Republic Airways and a former FAA chief counsel.
The committee is “specifically tasked to review the 737 MAX 800 certification process from 2012 to 2017, and recommend improvements to the certification process.”
U.S. lawmakers have criticized the FAA’s program that allows Boeing Co and other manufacturers to oversee the process that ensures air worthiness and other vital safety aspects of new aircraft.
Chao said last month the panel would be co-chaired by retired Air Force General Darren McDew, the former head of the U.S. Transportation Command, and Lee Moak, a former president of the Air Line Pilots Association.
Federal prosecutors, the Transportation Department’s inspector general and lawmakers are investigating the FAA’s certification of the 737 MAX 8 aircraft. A joint review by 10 governmental air regulators is also set to start April 29.
(Reporting by David Shepardson; Editing by Tom Brown)
FILE PHOTO: A United Express Embraer ERJ-175LR airplane is pictured at Vancouver’s international airport in Richmond, British Columbia, Canada, February 5, 2019. REUTERS/Ben Nelms
(Reuters) – United Airlines on Tuesday reported a better-than-expected jump in first-quarter profit as it sold more tickets and cut costs, standing by its 2019 profit target even as its Boeing Co 737 MAX jets remain grounded.
Chicago-based United has removed its 14 MAX aircraft, which were suspended worldwide in March following two fatal crashes, from its flying schedule through early July, eating into U.S. airlines’ peak summer travel season.
Still, the airline’s parent United Continental Holdings Inc reiterated its estimate for adjusted earnings of $10 to $12 per share in 2019, and said its strategy for scheduling more flights out of its hubs was continuing to win customers.
Adjusted earnings per share rose to $1.15 in the first quarter, ending March 31, from 49 cents a year earlier, overcoming a U.S. government shutdown and severe winter weather earlier this year that curtailed flights.
Wall Street analysts on average had forecast 95 cents per share, according to IBES data from Refinitiv.
Its shares rose 2.8 percent in after-hours trading.
United has largely avoided cancelling MAX flights by servicing those routes with larger aircraft, but President Scott Kirby warned last week that the strategy could not last indefinitely.
The airline, which has been adding seats at a faster pace than rivals, trimmed its 2019 capacity growth target to between 4 percent and 5 percent from 4 percent to 6 percent previously, but did not say whether the decision reflected the effect of the grounded MAX.
Total operating revenue rose 7.1 percent to $8.73 billion in the quarter, while closely watched revenue per available seat mile rose 1.1 percent.
In the second quarter, United said it expects unit revenue to rise between 0.5 percent and 2.5 percent while unit costs, which fell 1.8 percent in the first quarter, were expected to be flat to 1 percent higher.
The No. 3 U.S. carrier is the first of three U.S. 737 MAX operators to report first-quarter results. Southwest Airlines Co and American Airlines Group Inc, which have removed their MAX jets from schedules into August, report on April 25 and April 26 respectively.
A Federal Aviation Administration review board said on Tuesday that it found a Boeing software update for the MAX to be “operationally suitable,” suggesting the lengthy regulatory process to get the planes back in the air was underway.
Rival Delta Air Lines Inc, which does not operate the 737 MAX, lifted its 2019 revenue forecast last week after reporting better-than-expected quarterly profit.
(Reporting by Tracy Rucinski in Chicago; Additional reporting by Sanjana Shivdas in Bengaluru; Editing by Bill Rigby)
(Reuters)
– Virgin Atlantic on Wednesday reported an annual pretax loss for the
second consecutive year, hit by a shaky economy, the higher costs of
fuel generated by a weaker British pound and problems with Rolls Royce’s
Trent engines.
The
airline, the 1980s brainchild of British billionaire Richard Branson,
fell back into the red in 2017 after three years of profits, as
competition intensified and the weakening of the pound added to already
rising fuel costs.
Best
known in Europe for the trans-Atlantic planes it flies with Air
France-KLM and Delta, Virgin said its loss before tax and exceptional
items was 26.1 million pounds ($34.12 million) for the year ended Dec.
31, compared to a loss of 49 million pounds in 2017.
Total
revenue rose 5.8 percent to 2.78 billion pounds, as passenger numbers
grew just under 5 percent to 5.4 million and revenue per customer rose
1.7 percent.
The
company said performance had suffered from economic uncertainty and the
weaker pound – which increases costs because fuel is priced in dollars –
as well as the well-documented problems of the Trent 1000 engines used
on its Boeing 787 jets.
“While
a loss is disappointing, our performance has improved in 2018 despite
challenging economic conditions and put us on a trajectory for growth
and return to profitability,” Chief Executive Officer Shai Weiss said in
a statement.
Rolls-Royce
on Wednesday agreed to an early inspection of some Trent 1000 TEN
engines by regulatory authorities, a week after Singapore Airlines
grounded two Boeing 787-10 jets fitted with the units.
British
Airways owner IAG in February chose Boeing 777-9s, rather than a
competing package from Airbus in part powered by Rolls, underlining the
risks to airlines from the engine issues.
Since
then the industry has been thrown into chaos by the grounding of
Boeing’s new 737 MAX planes after a second fatal crash within six
months.
The
pound fell 5.6 percent against the U.S. dollar, in 2018 as Britain
contended with the political and economic uncertainty generated by its
negotiations on leaving the European Union.
Finance
chief Tom Mackay said that while economic factors would continue to
challenge the carrier in the year ahead, Virgin Atlantic was in a strong
cash position.
The
results are the company’s first since its acquisition of troubled
regional airline Flybe for $2.8 million earlier this year, in a joint
bid with Stobart Group and Cyrus Capital.
($1 = 0.7649 pounds)
(Reporting by Noor Zainab Hussain and Pushkala Aripaka in Bengaluru; Editing by Anil D’Silva)
(Reuters) – Air Canada said on Tuesday it would delay the launch of certain seasonal flights this spring, as the carrier wrestles with the challenge of servicing routes previously flown by its grounded Boeing 737 MAX aircraft.
Canada’s largest carrier said it would put off the launch of at least five seasonal routes, including delaying its Vancouver to Boston service to June 16 from June 1.
Montreal-based Air Canada said a previously-announced halting of flights from two Eastern Canadian cities to London’s Heathrow airport would now remain suspended until May 31.
Air Canada, which previously suspended its 2019 financial forecasts, has removed 24 MAX jets from its flight schedule until July 1, following grounding of the Boeing jets after two recent crashes involving the model.
The global grounding, following the crash of an Ethiopian Airlines flight in March, has left U.S. and Canadian airlines with the logistical challenge of replacing the popular roughly 175-seat MAX on certain routes, at a time of rising passenger demand.
The Canadian carrier has been flying alternative planes or consolidating flights into larger jets that were previous flown more frequently on smaller aircraft.
Air Canada has also said it is speeding up the integration of four Airbus A321 aircraft it acquired in late December from Iceland’s cash-strapped WOW air.
Air Canada is “accommodating as best as they can,” said AltaCorp analyst Chris Murray. “At the same time, there is still some uncertainty about when the MAX grounding notice is going to be lifted.”
On Monday, Boeing said it planned to submit a proposed software enhancement package for the grounded 737 MAX in “the coming weeks” after the company had previously said it planned to deliver the fix for government approval by last week.
Anglo-German tour operator TUI said last week that its profit would fall by at least 200 million euros ($223.96 million) this year due to the cost of substituting for the MAX planes, along with loss of business and lower fuel efficiency from the replacement aircraft.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli and Bill Berkrot)
FILE PHOTO: An aircraft of Gol Linhas Aereas Inteligentes SA departs from Congonhas airport in Sao Paulo, Brazil September 11, 2017. REUTERS/Paulo Whitaker
SAO PAULO (Reuters) – Brazil’s largest airline, Gol Linhas Aereas Inteligentes, will not cancel its orders of Boeing Co’s 737 MAX plane, the model which was involved in two fatal crashes, newspaper Valor Economico reported Gol’s chief executive as saying on Tuesday.
“We will not cancel our orders,” CEO Paulo Kakinoff said. “The 737 MAX is probably the best airplane ever made.”
Gol is going through a significant fleet transformation and has bet heavily on the Boeing 737 MAX, with over 100 planes scheduled to be delivered in the next few years.
The airline has so far received seven aircraft, which it grounded after an Ethiopian Airlines plane crashed in March, the second accident involving that plane model in a span of five months.
Kakinoff added that he thinks it is possible that the 737 MAX planes will fly again by July. That decision is in the hands of regulators around the world.
Gol has flown Boeing planes exclusively since its founding and is the U.S. planemaker’s largest client in Latin America.
(Reporting by Marcelo Rochabrun; Editing by Lisa Shumaker and Susan Thomas)
WASHINGTON, March 31 (Reuters) – Two U.S. Marine pilots died when their helicopter crashed near Yuma, Arizona, during a routine training mission, the Pentagon said on Sunday.
The Marines were flying an AH-1Z Viper helicopter as part of a weapons and tactics instructor course when the crash occurred late on Saturday, the Pentagon said.
The cause of the crash is being investigated. The Pentagon said the identities of the pilots would not be released for 24 hours pending notification of next of kin.
The AH-1Z Viper, a twin-engine attack helicopter built by Textron Inc subsidiary Bell Helicopter, entered production in late 2010. The Marine Corps was to acquire a total of 189 of the aircraft, according to a March 7 news release.
(Reporting by David Morgan; Editing by Dan Grebler and Daniel Wallis)
OTTAWA
(Reuters) – As Boeing Co and global airlines work to restore public
confidence in the 737 MAX after two deadly crashes, they will have a
play book they can use.
This
is not the first time that Boeing has faced a crisis after launching a
new plane with innovative technology. In 1965, three Boeing 727-100
passenger jets crashed in less than three months in the United States
while coming into land, killing a total of 131 people.
Like
the 737 MAX, the three-engined 727 was billed as one of the most
advanced aircraft of its time. Boeing introduced the 727 in 1964 and
portrayed it as a more efficient alternative to the standard four-engine
jets of the day, with new features designed to make the 727 easier to
operate from short airfields.
The
727’s wing flap system, which provides extra lift at low speeds, was
unusually large and sophisticated, which allowed the plane to descend
more quickly than other rivals and avoid buildings and other obstacles
close to runways.
Investigators
looking into the crashes discovered that some pilots did not fully
understand the flap system and were therefore allowing the planes to
descend at too great a speed.
“There was nothing wrong with the airplane… (but) if you didn’t really pay a lot of attention to it you could build up an immense sink rate,” said Bill Waldock, a professor of safety science at the U.S-based Embry-Riddle Aeronautical University. He uses the 727 accidents as part of a case study.
Aviation
authorities ordered more training for pilots but allowed the planes to
keep flying despite calls from some politicians to ground them.
Boeing made some modifications to the flight manual and to the procedures for flying the airplane on final approach.
In the case of the 737 MAX 8, Boeing is working on software and training updates. [L3N21C0FP]
Alan
Hoffman, a U.S. aviation historian and retired transportation lawyer
who has researched the 727 accidents, said given the publicity over the
recent crashes, the U.S. Federal Aviation Administration would only
allow the 737 MAX 8 planes to fly again if the regulator is convinced
the fixes worked.
“The
airplane will go back into service and unless something else crops up
there will be no further problems and a year from now this will all be a
dim distant memory,” he predicted by phone from St Louis, Missouri.
Boeing was not immediately available for comment.
In
contrast to the swift grounding of the 737 MAX 8 after the recent
second accident, just two days after the third fatal 727 crash, in
November 1965, the Civil Aeronautics Board said there was no reason to
ground the plane.
“It
passed very rigid certification tests … before it was put into
service and nothing has turned up in our investigation to cause us to
doubt its stability,” the board said.
Those
words did not immediately reassure many travellers. Indeed, passengers
had started to boycott the airliner after the crashes began.
“For
a period of six months or so a lot of 727s were flying with half full
cabins,” Waldock said by phone from Prescott, Arizona. Still, the 727
crisis passed.
The
plane eventually became one of Boeing’s best sellers and was in
widespread use for another 30 years. By 2003, virtually all had been
retired as airlines moved away from the 727’s loud and thirsty engines.
(Reporting by David Ljunggren; editing by Joe White and Cynthia Osterman)
OSLO (Reuters) – Norwegian Air will lease planes and postpone the sale of older models in its fleet following the grounding of Boeing 737 MAX aircraft, the airline said on Monday.
The budget carrier will also use some of its bigger Boeing 787 Dreamliners to offset the effects of the grounding of its 18 MAX jets – about 11 percent of its fleet.
The 737 MAX was grounded worldwide this month following a deadly crash in Ethiopia.
“In addition to continuing combining flights and reallocating aircraft, the company has decided to delay potential sales of six Boeing 737-800 aircraft and use available 787 Dreamliner capacity on high-volume routes, which will add flexibility,” Norwegian said in a statement.
“The company is further preparing to wetlease aircraft to fill the remaining capacity gap,” it added, referring to the industry practice of renting fully-staffed aircraft for a period of time.
Norwegian said earlier this month it would seek compensation from Boeing for costs resulting from the grounding of the global MAX fleet.
“The company has a good dialogue with Boeing and is confident of reaching a constructive agreement,” Norwegian said, without elaborating.
Norwegian Air CEO repeats plan to turn profitable in 2019
Norwegian Air aims to turn profitable this year, its chief executive said on Monday, reiterating plans to turn around the situation at the loss-making budget airline.
“We aim to become profitable in 2019,” Bjoern Kjos told Norwegian public broadcaster NRK. “We’re managing well as an independent company.”
SINGAPORE/ADDIS ABABA (Reuters) – Boeing Co said it invited more than 200 airline pilots, technical leaders and regulators for an information session on Wednesday as it looks to return the 737 MAX to commercial service.
The meeting is a sign that Boeing’s planned software patch is nearing completion, though it will still need regulatory approval.
Over the weekend, Ethiopian Airlines executives had questioned whether Boeing had told pilots enough about “aggressive” software that pushes the plane’s nose down, a focus of investigation into a deadly crash in Ethiopia this month that led to the global grounding of 737 MAX jets.
The informational session in Renton, Washington on Wednesday is part of a plan to reach all current and many future 737 MAX operators and their home regulators to discuss software and training updates to the jet, Boeing said in a statement.
Garuda Indonesia, which on Friday said it planned to cancel its order for 49 737 MAX jets citing a loss of passenger trust after the crashes, was invited to the briefing, CEO Ari Askhara told Reuters on Monday.
“We were informed on Friday, but because it is short notice we can’t send a pilot there,” he said, adding the airline had requested a webinar with Boeing but that idea had been rejected.
A Boeing spokeswoman said the Wednesday event was one of a series of in-person information sessions.
“We have been scheduling and will continue to arrange additional meetings to communicate with all current and many future MAX customers and operators,” she said.
Garuda has only one 737 MAX and had been reconsidering its order before the Ethiopian crash, as has fellow Indonesian carrier Lion Air, which experienced a deadly crash in October.
Singapore Airlines Ltd said on Monday its offshoot SilkAir, which operates the 737 MAX, had received the invitation to the Wednesday event and would send representatives.
Korean Air Lines Co Ltd, which before the grounding had been due to receive its first 737 MAX in April, said it planned to send pilots to Renton.
The 737 MAX is Boeing’s best-selling plane, with orders worth more than $500 billion at list prices.
Teams from the three U.S. airlines that own 737 MAX jets participated in a session in Renton reviewing a planned software upgrade on Saturday.
A U.S. official briefed on the matter Saturday said the Federal Aviation Administration (FAA) has not yet signed off on the software upgrade and training but the goal is to review them in coming weeks and approve them by April.
It remained unclear whether the software upgrade, called “design changes” by the FAA, will resolve concerns stemming from the ongoing investigation into the March 10 Ethiopian Airlines crash, which killed all 157 on board.
“After the crash it came to our attention that the system is aggressive,” Yohannes Hailemariam, vice president for flight operations at Ethiopian, told local reporters speaking in the Amharic language.
“It gives a message of stalling and it takes immediate action which is faster than the action which pilots were briefed to take by Boeing,” said Yohannes, himself a pilot with over 30 years of experience, including flying Boeing’s 777 and 787.
The U.S. official said planned changes included 15 minutes of training to help pilots deactivate the anti-stall system known as MCAS in the event of faulty sensor data or other issues. It also included some self-guided instruction, the official added.
American Airlines said Sunday it will extend flight cancellations through April 24 because of the grounding of the 737 MAX and cut some additional flights.
(Reporting by Jamie Freed in Singapore and Jason Neely in Addis Ababa; additional reporting by Cindy Silviana in Jakarta, Heekyong Yang in Seoul, Tracy Rucinski in Chicago and David Shepardson in Washington; Editing by Chris Reese and Michael Perry)
