Tag: address

Boeing to Consolidate 787 Production in South Carolina in 2021

October 1, 2020 / WIL BALDWIN

– Single site to improve operational efficiency as company adapts to market downturn and positions for recovery and long-term growth

– 787 production to continue in Everett, Wash. until program begins building at the previously announced rate of six airplanes a month in 2021

As the airline industry continues to address the impact of COVID-19, The Boeing Company [NYSE: BA] said today it will consolidate production of 787 jets at its facility in North Charleston, S.C., starting in mid-2021, according to the company’s best estimate. The decision comes as the company is strategically taking action to preserve liquidity and reposition certain lines of business in the current global environment to enhance efficiency and improve performance for the long-term.

While Boeing’s versatile 787 family has outperformed other widebody airplanes during the challenging market downturn, its production system has been adjusted to accommodate the current difficult market environment while positioning the 787 family to ramp up production as air travel increases.

“The Boeing 787 is the tremendous success it is today thanks to our great teammates in Everett. They helped give birth to an airplane that changed how airlines and passengers want to fly. As our customers manage through the unprecedented global pandemic, to ensure the long-term success of the 787 program, we are consolidating 787 production in South Carolina,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes.

“Our team in Puget Sound will continue to focus on efficiently building our 737, 747, 767 and 777 airplane families, and both sites will drive Boeing initiatives to further enhance safety, quality, and operational excellence.”

The company began assembling 787-8 and 787-9 airplanes at its Everett site in 2007, and brought the North Charleston facility on line as a second final assembly line in 2010. However, only the North Charleston site is set up to build the larger 787-10 model. Production of the smaller 787 models will continue in Everett until the program transitions to the previously-announced production rate of six airplanes a month in 2021.

In July, Boeing announced an in-depth study into the feasibility of producing 787s at a single location. The review examined the impacts and benefits to Boeing customers, suppliers, employees and the overall health of the production system. The 787 study is part of an enterprise review underway to reassess all aspects of Boeing’s facility footprint, organizational structure, portfolio and investment mix, and supply chain health and stability.

This analysis confirmed the feasibility and efficiency gains created by consolidation, which enables the company to accelerate improvements and target investments to better support customers.

“We recognize that production decisions can impact our teammates, industry and our community partners,” said Deal. “We extensively evaluated every aspect of the program and engaged with our stakeholders on how we can best partner moving forward. These efforts will further refine 787 production and enhance the airplane’s value proposition.”

Boeing said it is assessing potential impacts to employment in Everett and North Charleston and will communicate any changes directly to its employees.

Boeing Statement on Passage of CARES Act

March 26, 2020 / WIL BALDWIN

We thank the Administration, especially the President and Secretary Mnuchin, as well as the Senate for working together to take swift bipartisan action to support the American economy, including the 2.5 million jobs and 17,000 suppliers that Boeing, the aerospace industry and the U.S. rely on to maintain our world leadership in commercial, defense and services. The bill’s access to public and private liquidity, including loans and loan guarantees, is critical for airlines, airports, suppliers, and manufacturers to bridge to recovery.

Boeing’s top priority is to protect our workforce and support our extensive supply chain, and the CARES Act will help provide adequate measures to help address the pandemic. We have also taken a number of measures for affordability and liquidity as we navigate the challenges our industry currently faces, including forgoing pay for our CEO and board chairman, suspending our dividend until further notice, and extending our existing pause of any share repurchasing until further notice.

We appreciate the House taking swift action to support the American people.

American Airlines Reaches Settlement with Boeing for 737 MAX Compensation

January 6, 2020 / WIL BALDWIN

(Reuters) – American Airlines Group Inc <AAL> said on Monday it had reached a confidential agreement with Boeing Co <BA> to address damages the airline incurred in 2019 due to the ongoing grounding of its fleet of Boeing 737 MAX aircraft.

American, the largest U.S. airline, said the compensation will be received over several years. The airline will use more than $30 million of the compensation for the airline’s 2019 employee profit-sharing program.

American said it does not expect any material financial impact of the agreement to be realized in its fourth-quarter 2019 earnings and it will continue talks regarding compensation for damages related to the MAX grounding beyond 2019.

The Association of Professional Flight Attendants, which represents American Airlines’ 28,000 flight attendants, said it welcomed the news about compensation, and was evaluating the details.

Boeing said it does not comment on discussions with airlines.

Boeing’s best-selling 737 MAX has been grounded since two fatal crashes in five months killed 346 people. The company is halting production this month. A number of airlines have struck confidential settlements with Boeing in recent weeks.

(Reporting by David Shepardson, Editing by Rosalba O’Brien)

An American Airlines Boeing 737 Max 8, on a flight from Miami to New York City, comes in for landing at LaGuardia Airport in New York

FAA Must Boost Oversight to Address Allegiant Air Maintenance Issues

December 17, 2019 / WIL BALDWIN

An Allegiant Air MD-83 passenger jet takes off from the Monterey airport

WASHINGTON (Reuters) – The U.S. Federal Aviation Administration (FAA) needs to improve its oversight to address maintenance issues at Allegiant Air, the 11th largest U.S. carrier, according to a report seen by Reuters on Tuesday.

The U.S. Transportation Department’s Inspector General, in a 31-page report sent to Capitol Hill on Tuesday but not yet made public, said FAA inspectors since 2011 have not “consistently documented risks associated with 36 Allegiant Air in-flight engine shutdowns for its MD-80 fleet or correctly assessed the root cause of maintenance issues.”

Ultra-low cost Allegiant, a unit of Allegiant Travel Co, said it had not yet see the report and did not have an immediate comment.

The FAA said in a letter attached to the report that it agreed with eight of the nine recommendations made by the inspector general and partially agreed with the remaining one.

Allegiant carried about 14 million passengers last year, serving 122 U.S. cities and Puerto Rico on 450 flight routes.

The inspector general opened the probe in May 2018 after a “series of in-flight engine shutdowns, aborted takeoffs, and unscheduled landings” raised concerns about maintenance practices.

The report said in-flight shutdowns at Allegiant “continued until July 2018 and were only resolved four months later when Allegiant Air retired the last of its MD-80 fleet.” Allegiant now flies an all Airbus fleet.

The report found in-flight engine shutdowns forced 21 Allegiant aircraft to return or divert to other airports between 2014 and 2018, but that regulators did not properly track engine shutdown risks.

A 2015 maintenance provider failure at Allegiant Air demonstrated “severe violations that represent unacceptable safety risks or could result in catastrophic outcomes should also warrant a more stringent oversight approach,” the report said.

The inspector general said the airline’s maintenance provider failed to insert a cotter pin on a critical flight control component that put some 30,000 passengers at risk.

The report said in August 2015, a pilot “almost lost control of this aircraft during takeoff when it unexpectedly tried to lift off prematurely” but was able to abort takeoff and land safely.

After inspectors proposed a 30-day suspension for Allegiant Air’s maintenance provider, FAA regional officials reduced the suspension to a compliance action. FAA inspectors closed out six of eight compliance actions before ensuring Allegiant Air actually took any corrective actions, the report found.

It also found that FAA does not provide inspectors with guidance and comprehensive training to ensure Allegiant Air takes appropriate corrective actions.

The FAA said it had “initiated compliance actions at Allegiant Air that have improved safety for the flying public.”

(Reporting by David Shepardson; Editing by Richard Chang and Bill Berkrot)

Airline passengers walk next to an Allegiant Air commercial flight near an air traffic control tower operated by Serco nc. at the Ogden-Hinckley Airport in Ogden

Emirates’ Clark says Rolls-Royce Needs to Sort Itself Out After Engine Delays

November 23, 2019 / WIL BALDWIN

DUBAI, Nov 22 (Reuters) – The board of Rolls-Royce must urgently address its engine performance problems, the head of Dubai’s Emirates said, as the world’s largest buyer of wide-body jets weighs up who will power its order of Boeing 787 jets.

Emirates agreed to buy its first 787 Dreamliners in a last-minute, $9 billion deal at the Dubai Airshow on Wednesday, without specifying what engine would power it, while reducing its order for the U.S. planemaker’s delayed 777X model.

The 787’s, which can take either Rolls or rival GE Aviation’s GEnx engines, will be delivered to Emirates in 2023, a year later than a tentative purchase plan outlined two years ago.

That gives Rolls-Royce more time to sort out the durability issues in its Trent 1000 engines before Emirates believes a realistic competition can be held.

“Rolls have had a number of wake up calls and they really need to sort themselves out. I think the alarm clock has gone off a number of times,” Emirates President Tim Clark said at the Dubai Airshow.

“If I were on the board, I would be looking to recognise the issues… and deal with them immediately, meaningfully, forcefully and drive change,” he told reporters.

A spokeswoman for Rolls-Royce said it was proud that Emirates had chosen to order 50 Airbus A350s, powered by Rolls’ Trent XWB, in a deal announced this week.

“We are confident in the reliability and performance of our engines, and in our commitment to meeting the high standards expected by our customers,” the spokeswoman said.

“(Emirates) is one of the largest operators of our Trent engines in the world, and we are committed to maintaining our strong relationship with them.”

The Rolls-powered version of the 787 has been hit by repeated technical problems, leading to share price pressure and drawing criticism from airlines.

The engine maker’s chief executive Warren East said on Nov. 7 that the company would spend more on parts and replacement engines to reduce the time aircraft are grounded while turbine blades are replaced.

Clark said that the situation at Rolls was “salvageable” if board acted quickly and accepted the issues they were having.

“With the reputation that (Rolls) has for quality engineering and its excellence in the past, they must restore that as the gold standard,” he said.

He said his comments should not be read as a criticism of any individuals including East.

Clark has been a vocal critic of engine makers, saying in September he wouldn’t take new planes unless their engines were ready and said he was “a little bit irritated” by delays at Rolls and GE.

GE powers the 777X, which Emirates cut its order of on Wednesday after Boeing pushed back its entry into service, partly due to issues with its engines.

Clark said engine makers should only offer technology that was mature enough to work reliably in the demanding conditions of the Gulf, adding: “Don’t use (airlines) as guinea pigs”.

(Reporting by Tim Hepher, writing by Alistair Smout, Editing by Louise Heavens)

United Airlines Extends 737 MAX Cancellations To September 3

June 26, 2019 / WIL BALDWIN

CHICAGO (Reuters) – United Airlines said on Wednesday it has decided to remove the Boeing 737 MAX from its flying schedule until Sept. 3, leading to about 1,900 total flight cancellations in August.

The Federal Aviation Administration earlier said it has identified a new potential risk that Boeing Co must address on its 737 MAX before the jet can return to service.

(Reporting by Tracy Rucinski; Editing by Chris Reese)