Nov 18 (Reuters) – Air New Zealand Ltd said on Monday about 14,000 customers would be affected by cancellations this summer because of ongoing Rolls-Royce engine checks on its Boeing 787-9 aircraft.
The national carrier, which has 10 Trent 1000 engines on its 787-9 fleet, said the schedule changes were “now unavoidable”, adding that further changes may also be needed.
Rolls-Royce has been struggling to fix an issue on blades on the TEN variant, causing more and more passengers face disruptions due to checks and repair work.
“Rolls-Royce does not have any replacement engines available while maintenance work is undertaken and has advised Air New Zealand there’s significant wait for repair service,” said a statement by the airline.
Air New Zealand will suspend its twice-a-week seasonal Christchurch-Perth service – hitting 61 flights – and its second daily Auckland-Perth service from Dec. 10 until Jan 5, 2020.
“Going into the holiday season we’re acutely aware how important travel is to our customers, and our schedule changes are designed to keep cancellations to a minimum,” Air NZ’s Senior Manager Customer Care and Communications Doug Grant said in a statement.
Rolls-Royce’s cost to fix the issue jumped by another 800 million pounds ($1.02 billion), as the aerospace group promised to spend more on parts and replacement engines to reduce the time aircraft are grounded while turbine blades are replaced.
($1 = 0.7815 pounds)
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Peter Cooney and Tom Brown)
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.
PARIS, June 18 (Reuters) – Boeing’s grounded 737 MAX jet received a boost on Tuesday after British Airways-owner IAG signed a letter of intent to order 200 of the planes and said it was confident that it would return to service in the coming months.
Boeing said the deal had a value of more than $24 billion at list prices.
IAG said the mix of 737-8 and 737-10 aircraft, to be delivered between 2023 and 2027, would be powered by CFM Leap engines and used across a number of its airlines including British Airways, Vueling and Level.
The MAX 737 was grounded in March following two deadly crashes, and Boeing has been working on a software fix to get the jet back flying by the end of the year.
IAG Chief Executive Willie Walsh said he had experienced Boeing’s MCAS anti-stall software in person, adding it was “very helpful to see it in operation” and to “understand the changes” that Boeing was proposing.
“It gave me confidence both in terms of the aircraft and the changes that Boeing introduced,” he said at the announcement of the deal at the Paris Airshow.
“I am confident in Boeing.”
Boeing shares rose 2% on the announcement. The company is working towards a certification flight with regulators soon.
Boeing commercial airplanes boss Kevin McAllister said the decision of when the MAX flies again was in the hands of the regulators.
(Reporting by Tim Hepher, Eric M. Johnson and Alistair Smout Editing by Jane Merriman and Mark Potter)
FILE PHOTO: United Airlines Chief Executive Officer Oscar Munoz poses for pictures in his office at the company’s headquarters in Chicago, Illinois, U.S., November 14, 2018. Picture taken November 14, 2018. REUTERS/Tracy Rucinski
CHICAGO (Reuters) – United Airlines Chief Executive Oscar Munoz promised on Wednesday to accommodate any passengers concerned about flying Boeing Co’s 737 MAX jets once regulators deem the aircraft safe to fly again.
United is the only one of the three U.S. MAX operators to make such an announcement so far. Southwest Airlines Co, the world’s largest MAX operator, said on Wednesday discussions were still ongoing.
American Airlines Group Inc said on Wednesday “customers can be assured that our pilots would never operate an unsafe aircraft,” echoing other carriers’ insistence that safety is paramount to putting the globally grounded jets back in the air.
Still, following two fatal crashes of the MAX model within months, an Ethiopian Airlines jet in March after a Lion Air jet in October, Munoz said he wants customers to feel as comfortable as possible.
“If people need any kind of adjustments we will absolutely rebook them,” Munoz told reporters after the airline’s annual shareholders’ meeting.
Munoz said it was too soon to discuss whether Boeing would pick up the tab. None of the shareholders at the meeting questioned the company’s MAX plans. United is in the midst of a growth plan that has fuelled a 17% share rise over the past year.
Global regulators are meeting with the U.S. Federal Aviation Administration on Thursday to discuss Boeing’s proposed software fix and training updates for the MAX, which has been grounded since mid-March.
The timing of regulatory approval is still unclear, and Munoz said that is only the first step, with independent analysis and public and employee confidence critical in the Chicago-based airline’s strategy for eventually flying the jets again.
A Reuters/Ipsos poll released last week showed U.S. fliers still value ticket prices over aircraft models when choosing flights, suggesting the crashes have had little impact on consumer sentiment.
The No. 3 U.S. airline by passenger traffic, which trades under parent company United Continental Holdings Inc, operates 14 MAX jets and has dozens more on order.
United, American and Southwest together have cancelled thousands of flights during the busy U.S. summer travel season and warned of hits to profits from the grounded MAX, which many airlines had rushed to buy thanks to the narrowbody’s higher fuel-efficiency and longer range.
Still, Munoz said he was not concerned about the timetable for a return to service.
“We have to fly this aircraft for a long period of time, so a week, a month, whatever is not that important,” Munoz said.
(Reporting by Tracy Rucinski in Chicago; Editing by Matthew Lewis and Phil Berlowitz)
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)
(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)
FILE PHOTO: U.S. President Donald Trump speaks at the debut of the Boeing South Carolina Boeing 787-10 Dreamliner in North Charleston, South Carolina, U.S., February 17, 2017. REUTERS/Kevin Lamarque
WASHINGTON
(Reuters) – U.S. President Donald Trump on Monday urged Boeing Co to
fix and “rebrand” its 737 MAX jetliner following two fatal crashes, as
regulators worldwide continue to work with the planemaker to review its
grounded best-selling aircraft.
The
Federal Aviation Administration has been meeting major airlines and
convened a joint review with aviation regulators from other countries,
while federal prosecutors, the U.S. Department of Transportation
inspector general’s office and a blue-ribbon panel are reviewing the
plane’s certification.
In
an early-morning post on Twitter, Trump, who owned the Trump Shuttle
airline from 1989 to 1992 and is an aviation enthusiast, weighed in with
his own advice.
“What
do I know about branding, maybe nothing (but I did become President!),
but if I were Boeing, I would FIX the Boeing 737 MAX, add some
additional great features, & REBRAND the plane with a new name. No
product has suffered like this one. But again, what the hell do I know?”
Trump tweeted.
The
plane’s grounding has also threatened the U.S. summer travel season,
with some airlines removing the 737 from their schedules through August.
Trump
issued the tweet as Boeing tries to restore trust in its
fastest-selling jet, the main source of profits and cash at the
Chicago-based planemaker which has won some 5,000 orders or around seven
years of production for the aircraft.
Chief
Executive Dennis Muilenburg has apologised on behalf of Boeing for
lives lost in two recent accidents and promised that it would address
the risk that flight software meant to prevent the plane stalling could
be activated by wrong data.
Boeing
has also held dozens of briefings and simulator sessions for airline
executives and pilots and held worldwide meetings with airline branding
and communications staff.
Pilots
are expected to play a major role in regaining public confidence in the
aircraft, but Trump’s tweet marks the first time the brand underpinning
Boeing profits in coming years has been thrown into question at a high
level.
Brand
Finance, a UK-based consultancy that tracks the value of global brands,
rejected the idea that Boeing should abandon the MAX brand but said its
corporate reputation was in the firing line.
“This
has without a doubt damaged Boeing’s reputation and we foresee a dent
to the (Boeing) brand’s value at over $12 billion (£9 billion),” Chief
Executive David Haigh said by email when asked about Trump’s comments.
“This
is a temporary blip in the long run for Boeing,” he said, adding Toyota
and others had recovered from similar high-profile crises without a
drastic rebranding exercise.
Brand
Finance had previously estimated the damage to the value of Boeing’s
reputation at $7.5 billion immediately after the March 10 crash of an
Ethiopian Airlines jetliner, the second fatal accident involving the 737
MAX in five months.
Boeing
has the world’s most valuable aerospace brand, having seen the value of
its overall corporate image rise by 61 percent to $32 billion in 2018,
according to the same branding firm.
(Reporting by Susan Heavey, Tim Hepher; Editing by Jeffrey Benkoe and Toby Chopra)
FAA has proposed a fix for the Boeing 787 Dreamliner. The government agency proposal for a new airworthiness directive is targeted at some of the Boeing Company’s 787-8 Dreamliner aircraft. It specifically addresses a report defect found in a wing component of some of the airplanes. The issue is related to some of the aircraft wing fastener holes that may not have had the debris from the manufacturing process properly removed. This can lead to possible fatigue cracking, weakening the primary wing structure. The weakening could possibly lead to a failure to sustain the load of the fuselage. The FAA directive takes effective March 9, and requests a revision to the maintenance and inspection programs. The FAA recommendations are not binding, but Boeing did issued a service bulletin to the aircrafts operators last March pertaining to the issue.
