Tag: shutdowns

Tesla Reports Q2 Profit, Announces Texas Gigafactory

July 26, 2020 / WIL BALDWIN

Tesla (TSLA) posted a surprise second-quarter profit last week on cost cutting and strong deliveries, offsetting the effects of its Covid-19 related factory shutdowns. The report may help the electric vehicle manufacturer gain inclusion into the S&P 500 index (^SPX).

Tesla announced earned net income of $104 million for the quarter, or $0.50 per share. This marks the first time the company has posted four straight quarterly profit, a benchmark for the company to be considered for inclusion in the highly coveted S&P 500.

This marks another major win for Chief Executive Elon Musk, whose quest to lead the global auto industry with Tesla, and the aerospace industry with SpaceX, has increasingly been making major leaps forward.

Musk said last Wednesday that the city of Austin, located in Travis County, would be the site of Tesla’s newest factory. The victory for Texas comes at a loss for Oklahoma, which also was seeking to have the factory land in Tulsa. The facility seeks to create as many as 5,000 new jobs. The County offered up to $65 million in tax rebates to entice the company, and plans to begin construction in the third quarter.

The additional plant is slated to produce Model 3 and Model Y vehicles for the Eastern half of the United States, as well as a potential new Tesla Semi truck and its Cybertruck pickup. Elon Musk has stated that his cars are not affordable enough yet for the average consumer, and he hopes to develop a plan to address that issue.

The company also needs to address its growing need for affordable battery cell production, and is looking to expand its partnerships with Panasonic Corp <PCRFY> and Contemporary Amperex Technology of China (CATL) <300750.SZ>.

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

IndiGo Must Step Up Efforts to Replace Aircraft with Problem Pratt & Whitney Engines

November 25, 2019 / WIL BALDWIN

The logo of IndiGo Airlines is pictured on passenger aircraft on the tarmac in Colomiers near Toulouse

NEW DELHI (Reuters) – India’s air safety watchdog said IndiGo must do more to fix its aircraft fitted with Pratt & Whitney engines, linked to in-flight shutdowns, as it fears the budget airline may not meet its Jan. 31 deadline to replace them.

Deliveries of new planes taken by IndiGo must be used to replace the aircraft that are fitted with the problem Pratt engines, the Directorate General of Civil Aviation (DGCA) said on Monday. Those planes should then be grounded until their engines are replaced with new ones, after which they can fly again.

Indigo is the biggest customer of Airbus A320neo jets.

The regulator’s move effectively prevents India’s top airline from expanding its network until it has replaced all the Pratt & Whitney engines.

United Technologies’ Pratt & Whitney engines have consistently caused issues since they entered into service in 2016, forcing IndiGo to ground its planes several times.

In a recent review meeting with the airline, the DGCA felt that the steps taken by IndiGo so far to replace all the engines “do not instil enough confidence with regard to the timely completion of the said task”.

“If left unaddressed, we may find ourselves in a situation, in which, we remain saddled with large number of aircraft with unmodified engines … and we are left with the only option i.e. to ground them,” the regulator said in the statement.

On Nov. 1 the regulator had ordered the airline to replace all P&W engines on its fleet of almost 100 twin-engined Airbus A320neo family aircraft with new power units by Jan. 31, 2020.

If the replacement is not complete, all planes that still have unmodified engines will be grounded and could cause “large scale disruptions” in operations. The latest directive is aimed at preventing such a situation, the DGCA said.

IndiGo, owned by InterGlobe Aviation, said the current schedule remains intact, and it is working with P&W and Airbus to meet the DGCA guidelines.

(Reporting by Aditi Shah, editing by Louise Heavens)

Tesla Reports Q2 Profit, Announces Texas Gigafactory

FAA Must Boost Oversight to Address Allegiant Air Maintenance Issues

IndiGo Must Step Up Efforts to Replace Aircraft with Problem Pratt & Whitney Engines

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