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Boeing Statement On Lion Air Flight 610 Final Report

CHICAGO, Oct. 25, 2019 /PRNewswire/ — Boeing (NYSE: BA) issued the following statement regarding the release today of the final investigation report of Lion Air Flight 610 by Indonesia’s National Transportation Safety Committee (KNKT):

“On behalf of everyone at Boeing, I want to convey our heartfelt condolences to the families and loved ones of those who lost their lives in these accidents. We mourn with Lion Air, and we would like to express our deepest sympathies to the Lion Air family,” said Boeing President & CEO Dennis Muilenburg. “These tragic events have deeply affected us all and we will always remember what happened.”

“We commend Indonesia’s National Transportation Safety Committee for its extensive efforts to determine the facts of this accident, the contributing factors to its cause and recommendations aimed toward our common goal that this never happens again.”

“We are addressing the KNKT’s safety recommendations, and taking actions to enhance the safety of the 737 MAX to prevent the flight control conditions that occurred in this accident from ever happening again. Safety is an enduring value for everyone at Boeing and the safety of the flying public, our customers, and the crews aboard our airplanes is always our top priority. We value our long-standing partnership with Lion Air and we look forward to continuing to work together in the future.”

Boeing experts, working as technical advisors to the U.S. National Transportation Safety Board, have supported the KNKT over the course of the investigation. The company’s engineers have been working with the US Federal Aviation Administration (FAA) and other global regulators to make software updates and other changes, taking into account the information from the KNKT’s investigation.

Since this accident, the 737 MAX and its software are undergoing an unprecedented level of global regulatory oversight, testing and analysis. This includes hundreds of simulator sessions and test flights, regulatory analysis of thousands of documents, reviews by regulators and independent experts and extensive certification requirements.

Over the past several months Boeing has been making changes to the 737 MAX. Most significantly, Boeing has redesigned the way Angle of Attack (AoA) sensors work with a feature of the flight control software known as Maneuvering Characteristics Augmentation System (MCAS). Going forward, MCAS will compare information from both AoA sensors before activating, adding a new layer of protection. 

In addition, MCAS will now only turn on if both AoA sensors agree, will only activate once in response to erroneous AOA, and will always be subject to a maximum limit that can be overridden with the control column.  

These software changes will prevent the flight control conditions that occurred in this accident from ever happening again.

In addition, Boeing is updating crew manuals and pilot training, designed to ensure every pilot has all of the information they need to fly the 737 MAX safely.

Boeing continues to work with the FAA and other regulatory agencies worldwide on the certification of the software update and training program to safely return the 737 MAX to service.

‘System is not Broken’ After 737 MAX Crashes

FILE PHOTO: A Boeing 737 MAX aircraft is seen grounded at a storage area in an aerial photo at Boeing Field in Seattle

NEW YORK (Reuters) – The U.S. Federal Aviation Administration process for certifying new airplanes is not broken but needs to be improved, the chair of an international panel of air-safety regulators, tasked to review Boeing Co’s <BA> 737 Max, said on Friday.

Speaking on the sidelines of an event at a New York City college, Christopher Hart, chair of the multi-agency panel, said there was no need to question the agency’s overall way of certifying airplanes.

“The U.S. aviation system each day transports millions of people safely, so it’s not like we have to completely overhaul the entire system, it’s not broken. But these incidents have shown us that there are ways to improve the existing system,” Hart said, referring to fatal crashes of a Lion Air 737 MAX in Indonesia and an Ethiopian Airlines 737 MAX five months apart that killed a total of 346 people.

The MAX remains grounded and Boeing has not set when it will conduct a key certification test flight. Some in Congress and in aviation have criticized the FAA’s longstanding practice of delegating certification tasks to manufacturers.

Michael Perrone, who heads the Professional Aviation Safety Specialists union, said at a House hearing in July that external entities designated by the FAA “are now performing more than 90 percent of FAA’s certification activities despite serious concerns that oversight is lacking.”

Hart, former chairman of the National Transportation Safety Board (NTSB) and a licensed pilot, heads the Joint Authorities Technical Review, a panel including air-safety regulators from the United States, Canada, China, Indonesia, European Union and Brazil.

Reuters reported on Sept. 17 the review’s recommendations will include citing regulations that need to be harmonized internationally and where communications can be improved at the FAA and among international regulators, citing a person briefed on the matter.

Hart on Friday said the panel would release its recommendations to the FAA “shortly,” but declined to provide more details on the timeline. He said the panel’s goal was not for all of its members to agree, but to provide a wide range of opinions and recommendations to the FAA.

Hart spoke to students the Vaughn College of Aeronautics and Technology in Queens. Asked by a student whether passengers can be expected to fly again on a 737 MAX, Hart said he predicted people would “sooner or later forget” about the crashes and investigations.

“This will be the safest airplane out there by the time it has to go through all the hoops and hurdles,” he said.

He also was optimistic when asked whether the deadly crashes would spell the end for Boeing’s 737 MAX programme.

“It will be a cold day in hell before Southwest starts moving away from 737s because that’s all they got,” Hart said, referring to Southwest Airlines Co <LUV.N>, which has cancelled flights into January because of the MAX grounding.

A Southwest Airlines spokesman declined to comment directly on Hart’s comments but said the airline has “no plans to veer away from our all-737 fleet.”

(Reporting by Tina Bellon in New York; Additional reporting by David Shepardson; Editing by Daniel Wallis)

Norwegian Air Expects 737 MAX Grounded Through August

FILE PHOTO: Bjoern Kjos, CEO of Norwegian Air Shuttle ASA, attends a press conference presenting quarterly report of the company, in Oslo

PARIS (Reuters) – Norwegian Air expects Boeing’s 737 MAX aircraft to remain grounded until at least the end of August, missing the European summer season, CEO Bjoern Kjos said on Friday.

“If you ask Boeing they still say June or July,” Kjos said at the Paris Air Forum. “But we’re already in mid-June – we’ve planned for the MAX to be out until the end of August.”

More than 300 Boeing 737 MAX jets have been grounded worldwide after two fatal crashes in Ethiopia and Indonesia killed nearly 350 people. Some airlines now expect the plane to remain out of action until the end of 2019.

Norwegian, which operated 18 of the planes, has said the grounding will raise its costs by up to 500 million Norwegian crowns ($58 million). The low-cost, long-haul operator has delayed disposal of older Boeing 737 models or prolonged leasing contracts while it waits for their MAX replacements.

Boeing is awaiting a decisions by the U.S. Federal Aviation Administration on software improvements it proposed after the crashes and whether to require additional pilot training before flights can resume.

If more training is ordered, a shortage of simulators means that “it might be much longer” before commercial flights resume, Kjos said. “For some operators it could take up to a year.”

As a customer of Boeing’s GoldCare maintenance program, however, the CEO said Norwegian might not have to wait that long.

“We’d hope to be at the front of the queue,” he said.

(Reporting by Laurence Frost and Tim Hepher; Editing by David Goodman)

Boeing May Deliveries Fall 56% on 737 MAX Groundings

FILE PHOTO: An aerial photo shows Boeing 737 MAX airplanes parked on the tarmac at the Boeing Factory in Renton, Washington

(Reuters) – Boeing Co said on Tuesday it handed over 56% fewer airplanes in May, compared with a year earlier, as deliveries of its top-selling 737 MAX jet remained suspended following a deadly crash in March.

Total deliveries fell to 30 planes, compared with 68 in 2018. Net orders for the first five months remained in negative territory, with a total of minus 125 net orders.

The company has been facing its worst ever crisis after an Ethiopian Airlines’ 737 MAX plane crashed, killing all 157 people on board, in the second fatal accident involving the jet in just five months.

Boeing reiterated on Sunday it was working with global regulators to certify a software update for the jet as well as related training and education material to safely return the plane to service.

Global airlines that had rushed to buy the fuel-efficient, longer-range aircraft have since canceled flights and scrambled to cover routes that were previously flown by the MAX.

European rival Airbus SE delivered 81 aircraft in May, up 59% from last year and 313 in the January-May period, a rise of 40%.

Boeing shares were down 0.6% at $351.44 in morning trade.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D’Silva)

CORRECTED – Azerbaijan Cancels $1 Billion Boeing Contract

(Corrects “cancels” to “plans to postpone” in the first paragraph after AZAL changed its comment. Removes quote)

MOSCOW, June 3 (Reuters) – Azerbaijan airline AZAL plans to postpone a $1 billion contract with Boeing to purchase 10 737 MAX jets, a spokesman said on Monday, following fatal crashes involving the aircraft in Ethiopia and Indonesia.

Boeing’s top-selling aircraft, the 737 MAX, has been grounded worldwide since the March 10 disaster, which killed 157 people and came just five months after a Lion Air crash in Indonesia that killed 189 in a plane of the same model.

Many countries barred 737 Max jets from taking off or landing at local airports.

(Reporting by Nailia Bagirova; writing by Margarita Antidze)

United CEO Promises To Rebook 737 MAX Passengers

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)

FAA Convenes Review Board for Boeing Software Fix

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)

Trump Says Boeing Should ‘Rebrand’ Grounded 737 MAX Jet

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)

Boeing Invites Pilots & Regulators to 737 MAX Briefing

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)

Garuda Indonesia Plans to Cancel Boeing 737 MAX 8 Order

JAKARTA/OSLO (Reuters) – Indonesian airline Garuda plans to cancel a $6 billion order for Boeing 737 MAX jets, it said on Friday, saying some passengers would be frightened to board the plane after two fatal crashes, although analysts said the deal had long been in doubt.

The news came as another 737 MAX customer, Norwegian Air, played down the significance of a move by Boeing to make a previously optional cockpit warning light compulsory.

Norwegian said that, according to Boeing, the warning light would not have been able to prevent erroneous signals that Lion Air pilots received before their new 737 MAX plane crashed off Indonesia in October, killing 189 people.

Indonesia’s national carrier Garuda is the first airline to publicly announce plans to scrap an order since the world’s entire fleet of 737 MAX planes was grounded last week, following an Ethiopian Airlines crash that left 157 people dead.

“Many passengers told us they were afraid to get on a MAX 8,” Garuda CEO Ari Askhara told Reuters on Friday.

However, the airline had been reconsidering its order for 49 of the narrowbody jets prior to the Ethiopian crash, including potentially swapping some for widebody Boeing models.

Southeast Asia faces a glut of narrowbody aircraft like the 737 MAX and rival Airbus A320neo at a time of slowing global economic growth and high fuel costs.

“They have been re-looking at their fleet plan anyway so this is an opportunity to make some changes that otherwise may be difficult to do,” CAPA Centre for Aviation Chief Analyst Brendan Sobie said.

Indonesia’s Lion Air has also said it might cancel 737 MAX aircraft, though industry sources say it is also struggling to absorb the number of planes on order.

Both crashes are still being investigated. But regulators have noted some similarities between the two, and attention has focused on whether pilots had the correct information about the “angle of attack” at which the wing slices through the air.

No direct link has been proven between the accidents.

RETROFITS

Boeing now plans to make compulsory a light to alert pilots when sensor readings of the angle of attack do not match – meaning at least one must be wrong -, according to two officials briefed on the matter.

Investigators suspect a faulty angle-of-attack reading led the doomed Lion Air jet’s computer to believe it had stalled, prompting the plane’s anti-stall system, called MCAS, repeatedly to push the plane’s nose down.

The Lion Air plane did not have the warning light installed because it was not compulsory. Ethiopian Airlines did not immediately comment on whether its crashed plane had the alert.

But the Ethiopian carrier, whose reputation along with Boeing’s is at stake, issued a statement on Friday emphasising the modernity of its safety and training systems, with more than $500 million invested in infrastructure in the past five years.

The Ethiopian crash has set off one of the widest inquiries in aviation history and cast a shadow over the Boeing 737 MAX model intended to be a standard for decades.

Boeing did not comment on the plan to make the safety feature standard, but separately said it was moving quickly to make software changes and expected the upgrade to be approved by the U.S. Federal Aviation Administration (FAA) in coming weeks.

Chicago-based Boeing will also retrofit older planes with the cockpit warning light, the officials told Reuters.

Experts said it could take weeks or months to be done, and for regulators to review and approve the changes. Regulators in Europe and Canada have said they will conduct their own reviews of any new systems.

Norwegian said its 18 737 MAX jets did not have the cockpit warning light, but it would follow any recommendations made by Boeing and aviation regulations. The airline said last week it would seek compensation from Boeing for the cost of grounding its 737 MAX planes, which makes up 11 percent of its fleet.

Since the Ethiopian crash, Boeing shares have fallen 12 percent and $28 billion has been wiped off its market value.

Pressure has mounted on the company from U.S. legislators, who are also expected to question the FAA. The company faces a criminal investigation by the U.S. Justice Department as well.

Several lawsuits have already been filed on behalf of victims of the Lion Air crash referring to the Ethiopian accident. Boeing declined to comment on the lawsuits.

( By Cindy Silviana and Terje Solsvik, Additional reporting by Jamie Freed in Singapore, Bernadette Christina Munthe in Jakarta, Maggie Fick and Jason Neely in Addis Ababa, Tim Hepher in Paris, and Eric M. Johnson in Seattle; Writing by Sayantani Ghosh, Georgina Prodhan and Ben Klayman; Editing by Mark Potter)

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