TOMORROWS TRANSPORTATION NEWS TODAY!

Tag: Dennis Muilenburg

Trump Called Boeing CEO to Inquire About 737 MAX Production Halt

WASHINGTON (Reuters) – U.S. President Donald Trump called Boeing <BA> Chief Executive Dennis Muilenburg this week to ask about the status of 737 MAX production, two people briefed on the matter confirmed.

The call on Sunday was brief and Muilenburg assured Trump that the planned production halt was temporary and that the company would not be laying off any workers. The production halt, set to begin in January, was announced by Boeing Monday after a board meeting.

Boeing and the White House declined to comment on the call, reported earlier by the New York Times.

Separately, S&P Global Ratings on Thursday downgraded Boeing’s credit rating to “A-” from “A” and lowered the short-term rating to “A-2” from “A-1.”

The change “reflects the uncertainty over when the 737 MAX will return to service, the risk to the supply chain from the planned production halt, and possible long-term impact to Boeing’s competitive position.”

U.S. officials have repeatedly said they are waiting for additional answers from Boeing and have at time faulted the quality of submissions from the planemaker since the plane was grounded in March after two fatal crashes killed 346 people.

“We’ve had conversations about the importance of making sure that we are looking at complete documentation and not piecemeal documentation,” FAA Administrator Steve Dickson told Reuters in September. “It’s really better to be very methodical and very detailed rather than try to rush a partially completed product and then say, ‘We’ll get back to you with the rest of it.’”

Boeing has repeatedly said it is working with regulators to safely return the plane to service and acknowledged last week it would not occur until 2020.

Dickson said last week there are nearly a dozen milestones that must be completed before the MAX returns to service. Approval is not likely until at least February and could be delayed until March, U.S. officials told Reuters last week.

American Airlines Group Inc <AAL> and Southwest Airlines Co <LUV> have canceled flights into April because of the grounding.

(Reporting by David Shepardson; Editing by Nick Zieminski)

Unraveling The Boeing 737 MAX Lion Air Crash

(Reuters) – The crash of a Boeing Co 737 MAX jet in Indonesia on Oct. 29 has raised questions on whether the manufacturer shared enough information with regulators, airlines and pilots about the systems on the latest version of its popular narrow-body plane.

The jet operated by budget carrier Lion Air crashed into the Java Sea shortly after take-off from Jakarta, killing all 189 people on board.

WHAT IS NEW ON THE 737 MAX?

The most hyped features of the 737 MAX compared with its predecessor, the 737NG, are more fuel-efficient engines.

But as a result of the larger engines, which are placed higher and further forward of the wing, the jet’s balance changed. To address that, Boeing put in place more anti-stall protections, Leeham Co analyst Bjorn Fehrm said in an online post.

An automated protection system called the Maneuvering Characteristics Augmentation System (MCAS) kicks in when the angle of attack is too high, when the plane’s nose is too elevated, threatening a stall.

WHAT IS ‘ANGLE OF ATTACK’?

On paper, it measures the angle between the air flow and the wing. But it is so fundamental to flight that historians say the only instrument on the Wright Brothers’ first aircraft was a piece of yarn designed to measure it.

If the angle of attack is too high, the airflow over the wing is disturbed, throwing the plane into an aerodynamic stall.

One of two angle of attack sensors on the Lion Air jet was faulty, according to Indonesian investigators.

The U.S. Federal Aviation Administration (FAA) last week warned airlines that erroneous inputs from those sensors could lead the jet automatically to pitch its nose down even when autopilot is turned off, making it difficult for pilots to control.

WHICH AIRLINES OPERATE THE 737 MAX?

Boeing has delivered 241 of the jets to customers since it entered service last year, according to its website.

Major operators include Southwest Airlines, American Airlines, Norwegian, Lion Air, Air Canada, China Southern, China Eastern and flydubai.

Another 4,542 have been ordered but not yet delivered.

WHAT DID AIRLINES AND PILOTS KNOW ABOUT THE SYSTEM?

Lion Air’s flight manual did not contain information about the new anti-stall system, according to investigators and an airplane flight manual seen by Reuters. U.S. pilots were also not made aware in training courses, pilot unions say.

American Airlines said it was “unaware” of some of the functionality of the MCAS system. [L4N1XQ23Q]

Boeing Chief Executive Dennis Muilenburg told Fox Business Network on Tuesday that Boeing provides “all of the information that’s needed to safely fly our airplanes”.

HOW WOULD A PILOT SHUT OFF THE SYSTEM?

Pilots can stop the automated response by pressing two buttons if the system behaves unexpectedly, the FAA says.

That action is set out in a checklist used by Lion Air pilots for in-air troubleshooting, an instructor said. It is also required to be committed to memory by pilots.

Pilots on a flight from Jakarta to Bali the day before the crash experienced a similar sensor issue but managed to land safely by turning off the system, the New York Times reported.

HOW WAS THE SYSTEM APPROVED?

The FAA holds the main responsibility for certifying Boeing jets and training programs for pilots, but local regulators also issue approvals for airlines based in their countries.

An unresolved question is how Boeing measured the system’s reliability and on what basis the FAA certified it as safe.

HOW ARE PILOTS TRAINED?

An FAA document on training requirements for 737 MAX pilots transitioning from the older 737NG has no reference to the new anti-stall system.

Lion Air says it followed a training regime approved by U.S. and European regulators. The training was restricted to three hours of computer-based training and a familiarization flight.

However, Brazil’s regulator told Reuters that it had required specific training for pilots on the anti-stall system.

WHAT HAS CHANGED SINCE THE CRASH?

Boeing last week issued a bulletin to airlines reiterating existing procedures and advising them to add information on the anti-stall system to flight manuals, which was quickly followed by an FAA directive making that mandatory.

The FAA and Boeing are studying the need for software changes, as well as revisions to training and operating procedures on the 737 MAX, the regulator said.

WHEN WILL THE FIRST REPORT ON THE CRASH BE RELEASED?

A preliminary report will be released on Nov. 28 or 29, according to Indonesian investigators. However, divers have yet to locate the airline’s cockpit voice recorder, which would shed light on pilot interactions that are important for gaining a fuller picture of the circumstances of the crash.

(Reporting by Jamie Freed in Singapore, Tim Hepher in Paris, David Shepardson in Washington, Eric M. Johnson in Seattle, Tracy Rucinski in Chicago and Marcelo Rochabrun in Sao Paolo; Editing by Dan Grebler)

Image from www.boeing.com

Boeing Tops Analysts’ Forecasts For Quarterly Profit

(Reuters) – Boeing (BA.N) topped analysts’ forecasts for quarterly profit on Wednesday despite a series of charges on U.S. military programs and raised its forecasts for annual profit as it continued to benefit from a boom in global air travel and airplanes.

Shares of the world’s biggest planemaker were up 4.5 percent in premarket trading, helping brighten the mood on Wall Street after a handful of shaky results on Tuesday from U.S. manufacturers hurt by concerns over global trade.

Soaring demand from commercial airlines has driven another surge in revenues for Boeing over the past year, pushing shares in the company up by roughly a third over the past 12 months.

Those moves have been dented somewhat by a combination of the trade worries, this year’s greater market volatility and a series of recurring charges for its delay-plagued KC-46 tanker program.

Boeing recorded another $176 million in charges in the quarter on the aerial refueling tanker, bringing the total cost of the program to more than $3 billion.

It also took a charge of $691 million related to the MQ25 refueling drone and T-X training jet contracts it won in August and September, offset in part by a $412 million tax benefit.

Despite the charges, Chief Executive Officer Dennis Muilenburg played up the new T-X and MQ25 business and completion of a static test model of its forthcoming 777X widebody, with two test flight jetliners in production.

“This strong underlying performance, along with growth across our businesses we’ve seen throughout the year, give us confidence to raise our 2018 revenue and earnings guidance and reaffirm our operating cash flow guidance.”

Boeing raised its full-year profit forecast to $14.90-$15.10 from a previous $14.30-$14.50 per share, and revenue to a range of $98 billion to $100 billion, up from $97 billion to $99 billion.

The Chicago-based firm’s core earnings, which exclude some pension and other costs, came in 11 cents above analysts’ average forecast at $3.58 per share in the quarter ended Sept. 30.

Boeing has delivered 568 aircraft in the first nine months of 2018 despite production snarls on its best-selling 737 narrowbody, up from 554 at the end of September a year ago, putting it on track to deliver another record year of plane sales.

That keeps the manufacturer, which aims to deliver between 810-815 planes in 2018, in front of its European rival Airbus SE (AIR.PA), which delivered 503 aircraft through September this year. Airbus shares gained 2.7 percent.

(Reporting by Ankit Ajmera in Bengaluru; editing by Patrick Graham and Nick Zieminski)

Boeing Delivers First 787-9 Dreamliner to Juneyao Airlines

In other recent Boeing news, the company delivered the first 787-9 Dreamliner for Shanghai-based Juneyao Airlines. The new, super-efficient Dreamliner will also be the first widebody commercial jet operated by a privately-held Chinese airline.

“This delivery is our airline’s biggest milestone and marks a big step toward expanding our network in China and beyond,” said Wang Junjin, Chairman, Juneyao Airlines. “As the market-leading widebody model, the 787-9 Dreamliner will play a key role in our global business growth.”

Juneyao Airlines, previously an all-Airbus operator, mainly offers flights from Shanghai to more than 50 cities across China. In introducing the long-range 787 Dreamliner, the carrier is looking to expand its international network and increase flights to Southeast Asia, Japan and Korea.

The 787-9 is part of a family of three airplanes that offer long ranges and unmatched fuel efficiency in the 200 to 350 seat market. The 787-9 can carry 290 passengers and fly up to 7,635 nautical miles (14,140 km), while reducing fuel use and emissions by 20 to 25 percent compared to older airplanes. Passengers will appreciate a more comfortable flight thanks to the Dreamliner’s large windows, lower cabin altitude, smooth-ride technology, and other amenities.

“We are delighted to welcome Juneyao to the growing 787 Dreamliner family. We are confident that the Dreamliner’s fuel efficiency, range and passenger-pleasing features will power the next stage of Juneyao Airlines’ expansion,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing at The Boeing Company. “This delivery marks the first of 10 787-9 Dreamliners for Juneyao and their emergence as an international carrier.”

To ensure a smooth introduction of the Dreamliner, Juneyao Airlines will use Boeing Global Services’ pilot training. The airline will also employ electronic flight bag in the flight deck to improve operational efficiency. On other aircraft, Juneyao uses Boeing’s tailored charting services and flight planning solutions.

Boeing To Release Third-Quarter Results October 24

CHICAGOSept. 26, 2018 /PRNewswire/ — The Boeing Company [NYSE: BA] will release its financial results for the third quarter of 2018 on October 24.

Chairman, President and Chief Executive Officer Dennis Muilenburg and Chief Financial Officer and Executive Vice President of Enterprise Performance & Strategy Greg Smithwill discuss the results and company outlook during a conference call that day at 10:30 a.m. ET.

The event will be webcast at:

http://event.on24.com/wcc/r/1822354/461301A48BA611B531896356D678064A

The event can also be accessed by dialing 1-800-230-1096 within the U.S. and by dialing 612-332-0107 outside of the U.S. The passcode for both is “Boeing.”

Individuals should check the webcast site prior to the session to ensure their computers can access the audio stream and slide presentation. Instructions for obtaining the required free downloadable software will be posted on the site.

A Boeing news release and presentation materials will be posted to the Investors section of www.boeing.com prior to the event.

Contact  
Investor Relations: 312-544-2140 
Communications: 312-544-2002

Boeing Reports Record Results

Boeing (BA) shares surged before the stock market open Wednesday after the aerospace and defense contractor posted fourth-quarter results that solidly outpaced analyst expectations, boosted by strong demand across its business units. “Our team remains focused on winning through innovation, driving growth and productivity and extending our position as the world’s leading aerospace company,” Boeing CEO Dennis Muilenburg said in a statement. In the quarter ended Dec. 31, Boeing’s net income nearly doubled to $3.13 billion, or $5.18 per share, from $1.63 billion, or $2.59 per share, a year ago.

Click the link below for the full story!

Boeing reports results