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FAA Requiring Inspections for Cracks on Some 737 NG Planes

WASHINGTON (Reuters) – The U.S. Federal Aviation Administration late on Friday said it would require operators of some Boeing 737 NG jetliners to conduct inspections for structural cracks and make repairs as needed following the discovery of cracks on a small number of planes.

The FAA said Boeing notified it of the issue “after it discovered the cracks while conducting modifications on a heavily used aircraft.” Subsequent inspections “uncovered similar cracks in a small number of additional planes.” Boeing said on Friday it has been in contact with 737 NG operators about a cracking issue, but added that “no in-service issues have been reported.”

Neither the FAA nor Boeing immediately said how many planes were impacted by the required inspections.

The 737 NG, or Next Generation, was introduced in 1997 and is the third generation version of the best-selling Boeing airplane. The 737 MAX, which was grounded in March after two fatal crashes in five months, is not affected by this issue, Boeing said.

The FAA said it would ask operators of the NG to “report their findings to the agency immediately” after completing inspections. Boeing said “over the coming days, we will work closely with our customers to implement a recommended inspection plan for certain airplanes in the fleet.”

KOMO News reported on Friday the issue involved cracked “pickle forks” in some 737 NG jets. The pickle fork attaches the plane’s fuselage, or body, to the wing structure and manages forces. A failure of the part in flight could pose a serious risk. KOMO said workers found a severely cracked pickle fork on a Boeing 737NG earlier this month.

(Reporting by David Shepardson; Editing by Leslie Adler and Sandra Maler)

Southwest Airlines to Cut Routes Including Austin Flights

USA Today has reported that Southwest will cut nearly 20 nonstop routes across its network to free up airplanes for higher demand flights, including its new Hawaiian service. The routes being cut include Austin to San Francisco, which will be discontinued on January 6th. After the discontinuation, you’ll still be able to fly nonstop to San Francisco on Alaska, Frontier, and United Airlines.

Southwest also confirmed in July that it would discontinued nonstop service to Newark Liberty International Airport in November due to the grounding of its Boeing 737 Max aircraft this year. United will continue to fly nonstop to Newark with American, Delta and JetBlue serving New York’s John F. Kennedy International Airport.

Despite the cuts in Austin service, Southwest Airlines will still be the top air carrier at Austin Bergstrom International Airport by passenger traffic.

Rostec Ready for 737 MAX Out of Court Deal with Boeing

MOSCOW (Reuters) – A unit of Russian conglomerate Rostec said on Tuesday it was ready for an out-of-court settlement with Boeing over its order for 35 Boeing 737 MAX jets, a spokesman for Rostec’s subsidiary Avia Capital Service told Reuters.

Boeing MAX 737 jets have been grounded worldwide and airlines are cancelling multimillion contracts following crashes in October and March that killed 346 people.

Earlier on Tuesday, Rostec said its unit had filed a lawsuit in the United States to cancel its order for the 35 MAX jets. The Financial Times, which first reported the move, said Avia Capital Service gave Boeing a cash deposit of $35 million.

A spokesman for Avia Capital Service told Reuters that delivery of the jets was first scheduled for October 2019 but was moved to March 2022. The Rostec unit had paid Boeing a deposit and was suffering losses from non-delivery, he said.

“If Boeing executives show a good will, we are ready to hold talks and find a mutually-beneficial out-of-court settlement for compensation of the losses we have suffered,” he said.

He added that the jets were ordered for a number of Russian air companies, including domestic low-cost firm Pobeda, a unit of the state carrier Aeroflot.

Russia is mainly using Boeing and Airbus jets for passenger flights, with a number of domestic airlines also adding Russian-made regional Sukhoi Superjet aircraft to their fleets.

The Rostec subsidiary now wants the deposit to be returned by Boeing with interest, along with $75 million in “lost profit” and about $115 million in compensatory damages, plus “several times the amount” in punitive damages, the FT said.

Rostec declined to provide further details about the lawsuit.

(Reporting by Gleb Stolyarov; writing by Anton Kolodyazhnyy and Tom Balmforth; Editing by Sherry Jacob-Phillips/Katya Golubkova and Emelia Sithole-Matarise)

FAA to Invite Global Boeing 737 MAX Pilots for Simulator Tests

CHICAGO/WASHINGTON, Aug 22 (Reuters) – The U.S. Federal Aviation Administration said on Thursday it would invite Boeing 737 MAX pilots from across the world to participate in simulator tests as part of the process to recertify the aircraft for flight following two fatal crashes.

Earlier, Reuters reported that the agency had asked the three U.S. airlines that operate the MAX to provide the names of some pilots who had only flown the 737 for around a year, including at least one MAX flight.

In a statement, the FAA said it had not specified the number of required hours of flight experience, but said the candidates would be a cross-section of line pilots and must have experience at the controls of the MAX.

Boeing Co’s latest 737 narrow-body model, the MAX, was grounded worldwide in March after two crashes within five months in Indonesia and Ethiopia that killed 346 people.

Boeing has been reprogramming software for a stall-prevention system at the center of both crashes, which the FAA must approve before the plane flies again commercially.

The FAA said it had not yet specified a firm schedule for the tests.

Boeing has said it is working toward getting the 737 MAX flying again commercially in the early fourth quarter. Reuters reported on Thursday that it had told suppliers it planned to ramp 737 production back up in February, sending its shares 4% higher.

The world’s largest planemaker slowed its 737 production rate in April because deliveries of the MAX, which makes up the bulk of its single-aisle production, were frozen under the grounding, hitting its supply chain and airline customers.

In the United States, MAX operators Southwest Airlines Co , American Airlines and United Airlines have had to cancel hundreds of daily flights as they wrestle with slimmer fleets at a time of strong domestic air travel demand.

The MAX is Boeing’s fastest-selling aircraft, with about 5,000 pending orders.

As part of its own testing process, Boeing has invited senior airline pilots to experiment with the software fix and use simulators to run scenarios similar to the ones that led to the two crashes.

But sources told Reuters that the FAA also wanted to observe newer 737 pilots. One source said the simulator tests were supposed to be conducted during the first week of September but had been pushed back to the middle of the month.

The FAA, which is working alongside global regulators, has said repeatedly it does not have a fixed time line to approve the grounded jets to fly commercially again.

(Reporting by Tracy Rucinski in Chicago and David Shepardson in Washington; Additional reporting by Eric M. Johnson in Seattle; Editing by Matthew Lewis and Peter Cooney)

BOC Aviation Expects Delivery Delay of up to 30 Jets

SINGAPORE (Reuters) – Aircraft lessor BOC Aviation Ltd said on Tuesday it expected up to 30 Boeing Co <BA> and Airbus SE <EADSY> jets that had been scheduled to arrive this year could be delayed, primarily due to the Boeing 737 MAX grounding.

BOC said 18 jets that had been due in the first half had been delayed, including 12 A320neo’s due primarily to industrial constraints and 6 737 MAX’s as a result of the grounding.

For the full year, up to 7 A320neo’s and 23 737 MAX’s could be delayed, including three for which an airline customer has the right to acquire upon delivery, Asia’s second-biggest aircraft lessor said in a statement.

BOC said it was working with Boeing on a revised delivery timeframe.

Boeing last week estimated a return to service for the jet would begin early in the fourth quarter, but it did not rule out further reducing or temporarily shutting down production of the plane if that forecast needed to be revised.

U.S. carrier Southwest Airlines Co <LUV> last week removed the 737 MAX from its schedules until Jan. 5, 2020, saying it would need one to two months following regulatory approval to train pilots and prepare the jets for fresh commercial service.

(Reporting by Jamie Freed; Editing by Stephen Coates)

Boeing Eyes Atlanta for Huge Distribution Center

The Boeing Co. is looking at south metro Atlanta for a warehouse and distribution center that could approach 1 million square feet — the latest mega project for the region’s booming logistics sector. The aerospace giant (NYSE: BA) is working with third-party logistics provider XPO Logistics Inc. (NYSE: XPO), which has been touring south metro industrial properties this year and may be focused on Clayton and Henry counties. Industrial real estate developers with projects along the Interstate 75 corridor south of Atlanta have competed for the Boeing facility, which could range from 800,000 square feet initially to eventually more than 1 million square feet.  Developers have seen a request for proposals for the project, according to real estate sources familiar with the process.

Click the link for the full story! https://www.bizjournals.com/atlanta/news/2019/07/19/boeing-eyes-atlanta-for-huge-distribution-center.html?ana=yahoo&yptr=yahoo

Airbus Closes In On Air France Jetliner Deal

LONDON (Reuters) – Airbus is close to a deal worth billions of dollars to sell dozens of A320neo-family and smaller A220 aircraft to Air France as the French network carries out a keenly awaited renewal of its medium-haul fleet, industry sources said.

The deal could include as many as 50-70 Canadian-designed A220 jets, formerly known as CSeries, to replace Air France’s ageing fleet of roughly 50 A318 and A319 aircraft, they said.

Air France is also expected to pick the A320neo family to replace approximately 40 earlier versions of the Airbus A320 that are up to 18 years old.

A spokeswoman for Franco-Dutch parent Air France-KLM said: “Air France is pursuing work on its medium-haul fleet renewal. No decision has been taken at this stage.”

Airbus declined to comment on the deal, which is expected to be formally discussed at an end-month Air France-KLM board meeting.

The expected deal marks a rebound for Airbus after rival Boeing poached part of the fleet of British Airways owner IAG at last month’s Paris Airshow.

That deal caught Airbus off guard, though in the longer term sources say it may also have eased the European planemaker’s anxieties over the grounding of Boeing’s 737 MAX following the Ethiopian Airlines crash in March.

Airbus privately hopes the MAX will survive the crisis to avoid a costly race to develop all-new aircraft and to ease the prospect of a radical change in certification rules.

The anticipated Air France deal also illustrates Airbus’s recent deliberate effort to boost A220 sales by packaging deals together with its benchmark A320, industry sources said.

Airbus bought the loss-making A220 programme from Canada’s Bombardier last year and immediately began offering it to customers that already have other Airbus aircraft, allowing it to juggle prices and ancillary services across the fleet.

Air France-KLM, formed from a merger of French and Dutch flag carriers in 2004, continues to operate a mixed fleet between its two main national networks.

KLM last month provisionally became the first major European customer for the newly certified E195-E2 offered by A220 rival Embraer of Brazil, whose commercial aerospace arm is being acquired by Boeing.

KLM signed a letter of intent for 15 of the upgraded aircraft and options for another 20.

The Dutch carrier and Franco-Dutch low-cost subsidiary Transavia both operate the Boeing 737 family.

(Additional reporting by Laurence Frost; Editing by Geert de Clercq and Luke Baker)

Boeing 737 Program Manager to Retire Amid Jet’s Grounding

SEATTLE, July 11 (Reuters) – Boeing’s 737 jet program manager, Eric Lindblad, will retire in a matter of weeks after roughly 12 months on the job, according to a company memo seen by Reuters on Thursday.

Lindblad’s departure, after a 34-year career at Boeing, comes as the world’s largest planemaker navigates one of the worst crises in its history. Boeing’s money-spinning 737 MAX jetliner has been grounded in the wake of two deadly crashes that killed nearly 350 people in the span of five months.

Taking Lindblad’s place as the lead of the 737 program and the Renton, Washington, factory will be Mark Jenks, who has been leading Boeing’s potential new mid-market airplane (NMA) project, Boeing Commercial Airplanes Chief Executive Kevin McAllister wrote in the memo to employees seen by Reuters.

Mike Sinnett, Boeing Commercial Airplanes vice president of product development and future airplane development, will assume the role of vice president for NMA in addition to his current role, the memo said. Sinnett, who originally led preliminary work on the NMA, has been seen a figurehead of the program.

“Let me be clear – the NMA team will continue to operate as a program, and I am looking forward to Mike’s leadership in this important effort,” McAllister said in the memo.

In naming Jenks and Sinnett to run marquee projects at such a crucial time, McAllister is choosing two of Boeing’s most high-profile engineers. Jenks has been credited with turning around the 787 Dreamliner program, and his appointment on the NMA was seen as key to putting the potential twin-aisle aircraft on a path to a rapid launch.

But industry sources say the launch of the NMA has been delayed by the 737 MAX crisis. The NMA program, if it goes ahead, will most likely not be launched before spring or summer of next year, the sources said.

(Reporting by Eric M. Johnson in Seattle and Tim Hepher in Paris; Editing by Leslie Adler)

Boeing Deliveries Fall 37%

(Reuters) – Boeing Co said on Tuesday its deliveries fell about 37% to 239 planes in the first half of 2019, hurt by the grounding of its best-selling 737 MAX jets, putting it on track to lose the world’s biggest planemaker title after eight years.

Boeing’s deliveries lagged those of European rival Airbus SE, which handed over as many as 389 planes in the same period, up 28% from a year earlier, according to sources.

A new problem identified with the grounded MAX jets last month has delayed the aircraft’s entry into service until at least the end of September, disrupting schedules for airline operators and possibly adding to costs for Boeing.

The American planemaker’s net orders for the first six months was in the negative, with a total of minus 119 net orders. Boeing had minus 125 net orders as of the end of May.

Deliveries of the MAX aircraft were stopped in March, a few days after an Ethiopian Airlines crash killed all 157 people on board. Since then, Boeing has not reported any new order for the MAX planes.

Last month, British Airways-owner IAG signed a letter of intent to order 200 MAXs.

Boeing shares were down 0.5% at $349.4 in morning trade.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Arun Koyyur and Anil D’Silva)

Ural Airlines Set to Receive First Boeing-737 MAX in December

MOSCOW (Reuters) – Russian airline Ural Airlines plans to receive the first of 14 previously ordered Boeing-737 MAX aircraft for leasing in December, Interfax news agency reported, citing its chief executive Sergei Skuratov.

Two Boeing MAX aircraft crashed in Ethiopia in March and Indonesia last October, triggering the global grounding of the aircraft. Regulators must approve the fix and new pilot training before the jets can fly again.

“These are good aircrafts. Mistakes have been made, but they are going to be fixed,” Skuratov was quoted as saying by Interfax.

Ural Airlines signed a deal for the leasing of 14 Boeing-737 MAX 8 in the spring of 2018. The delivery was expected between October 2019 and May 2022, Interfax said.

When asked whether the company considered cancelling the deal, Skuratov told the agency that “Boeing has certain advantages: seven hours 45 minutes (of flight) without refueling fully loaded.”

Ural Airlines plans to receive its first Airbus A320neo in August with an additional four jets expected to arrive by the end of 2019, he added.

(Reporting by Polina Devitt,; Editing by William Maclean)

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