March 18, 2019
Latest News

Boeing halts 737 MAX deliveries after two fatal crashes

Bangkok Desk, Mar 15 (efe-epa).- Boeing Co. suffered dual setbacks Thursday when it paused deliveries of its 737 MAX jetliner and a U.S. Air Force official raised concerns about one of the company's biggest military-plane programs, Dow Jones Newswires reported in an article made available to EFE.

The aircraft manufacturer said it has suspended deliveries of its 737 MAX following the grounding of the aircraft by aviation regulators around the world after two fatal crashes within five months.

A spokesman for Boeing said it hadn't made any changes to its 737 production rate of 52 planes a month, but said the company continues "to work through production decisions."

Boeing, the world's top plane maker in terms of deliveries, will continue to build 737 MAX planes while assessing how capacity constraints could affect the company's production system amid the world-wide restrictions, according to the spokesman.

Shares in the company fell 1% Thursday to $373.30. The stock is off 12% from $422.54 on Friday, before the fatal crash of an Ethiopian Airlines 737 MAX on Sunday. The incident in Ethiopia followed another fatal crash involving the same model plane, operated by Lion Air, in Indonesia in October.

The stock's decline has erased $27.8 billion from Boeing's market value since Friday.

Meanwhile, the black boxes from Ethiopian Airlines Flight 302 arrived in France early Thursday for analysis, a key step in a probe that could help determine how long the 737 MAX jet remains grounded around the world. The devices store key data, such as flight parameters and cockpit voice recordings, which investigators will unlock and read to help them determine the cause of the crash. The French agency has extensive experience investigating crashes.

Downloading the data is due to start Friday. Drawing early conclusions sometimes can take only a few hours, but it can take days or significantly longer if a device is damaged. One person familiar with the details said the cockpit-voice recorder is damaged. Detailed analysis typically can take months.

Data from the black boxes will be among the earliest and most important findings that regulators and airlines will consider in determining whether and when the jet should be allowed to fly again. President Trump said Thursday, "I hope it's going to be for a short period of time."

The new MAX model includes a stall-prevention system that has come under scrutiny since the Lion Air crash. Authorities have said preliminary data in the probe of the Ethiopian Airlines crash suggested potential similarities between the two accidents.

Boeing has said it believes the jet is safe, but said it eventually concurred with the decision by U.S. authorities to ground the jet out of an "abundance of caution," according to a written statement from Chief Executive Dennis Muilenburg. The U.S. Federal Aviation Administration on Wednesday joined other regulators in grounding the 737 MAX.

Regarding the deliveries pause, a person familiar with the matter said constraints Boeing faces include places to park the aircraft once the jets are built at the company's factory in Renton, Wash.

The facility abuts a small airport, but parking is scarce so the planes must be flown to nearby King County International Airport, also known as Boeing Field, before delivery to customers.

It wasn't immediately clear how many 737 MAX planes Boeing could store at the airfield. A spokesman for the airport's operator didn't immediately respond to a request for comment Thursday about how much additional parking space Boeing had at the airfield. But the operator has said Boeing leases 106 acres there, mostly for its 737 program.

Despite the FAA's grounding order, the agency has indicated it would grant Boeing special permits to move the aircraft without passengers onboard.

Boeing is investigating alternatives should space at Boeing Field fill up, the person familiar with the matter said. It isn't clear when restrictions could be lifted, but analysts said they could remain in place for at least a matter of weeks.

The world-wide restrictions also dent Boeing's ability to generate cash. Customers pay a large chunk of their bill when they receive finished aircraft.

"It represents a clear logistical challenge," said Michel Merluzeau, director of aerospace- and defense-market analysis at AIR, a research firm in Seattle. "They have to continue to pump these planes out of the factory."

The delivery pause doesn't affect delivery of Boeing's older 737NG models. Boeing's Renton factory churns out 52 737s a month, and the company has planned to increase the rate to 57 this year. Boeing has been phasing out the 737NG as it shifts increasingly toward producing the MAX models.

Also Thursday, a senior Pentagon official indicated the U.S. Air Force has lost confidence in Boeing's ability to maintain quality control over a new aerial refueling tanker it is building.

Boeing delivered the first of the KC-46A Pegasus tankers in January, more than a year late, after a series of production and design problems left the aerospace company nursing $3.5 billion in losses on the initial $4.9 billion contract.

The Air Force then suspended deliveries in February after finding tools and other debris left in some jets, prompting a sharp rebuke from defense chiefs.

"Well, we are not happy with this at all," Will Roper, the Air Force's assistant secretary for Acquisition, Technology and Logistics, told reporters after a congressional hearing. "We do not want to be accepting tankers this way. Having teams sweep an aircraft five times is simply unacceptable."

Deliveries of the tankers resumed this week, after Boeing instituted fresh measures to check the aircraft, and the company now has handed over seven planes out of the existing 52-jet contract.

Mr. Roper said he is confident in the tanker's design and said he even flew in the model delivered this week.

A Boeing spokesman said the company was focused on safety and quality and had agreed on a plan with the Air Force to remedy the debris and quality issues. Mr. Roper said this week's efforts to search for the cause of the Boeing 737 MAX crashes had no impact on military contracts.

"The government is a fair broker," he said. "We're dealing with this issue as it is."

By Andrew Tangel and Ben Kesling

News history
Report: Boeing 737 MAX jet draws US criminal probe

Washington DC, Mar 18 (efe-epa).- Federal prosecutors and Department of Transportation officials are scrutinizing the development of Boeing's 737 MAX...

Fidelity National Information Services to buy Worldpay for $35 billion

Madrid, Mar 18 (efe-epa).- Fidelity National Information Services said Monday it has agreed to acquire Worldpay for about $35 billion in cash and stock,...

Trump Wants a Strong Yuan — He May Get It Regardless

Madrid, Mar 18 (efe-epa).- Generals, the saying goes, always fight the last war. Chinese exports held up well in 2018 partly thanks to a vertiginous drop in...

South Korea-funded solar energy project brings power to Honduras' rural poor

Tegucigalpa, Mar 16 (efe-epa).- A solar energy project financed in large part by South Korea's export credit agency is bringing electricity to thousands of...

Excess alcohol levels detected in Japan pilot ahead of flight

Tokyo, Mar 16 (efe-epa).- A fresh case has emerged of a Japanese airline pilot having excessive levels of alcohol in his system before flying, Japanese...

China estimates cost of Panama high-speed rail line at $4.1 bn

Panama City, Mar 15 (epa-efe).- A proposed high-speed rail line between the Panamanian capital and the country's border with Costa Rica would require an...

Beekeeping, a path to empowerment for rural Colombian women

By Santiago Jose Sanchez

Japan's ANA monitors Boeing crisis amid pending 737 Max order

Tokyo, Mar 15 (efe-epa).- Japanese airline All Nippon Airways said on Friday that it was closely following the crisis surrounding Boeing's 737-Max...

China's Li says country must take stronger steps to face economic uncertainty

Beijing, Mar 15 (efe-epa).- The Chinese Premier Friday acknowledged that the government must take stronger measures against the economic uncertainties...

Boeing halts 737 MAX deliveries after two fatal crashes

Bangkok Desk, Mar 15 (efe-epa).- Boeing Co. suffered dual setbacks Thursday when it paused deliveries of its 737 MAX jetliner and a U.S. Air Force official...

Two top Facebook executives leaving company

Bangkok Desk, Mar 15 (efe-epa).- A senior Facebook Inc. executive viewed as a potential successor to Mark Zuckerberg abruptly stepped down Thursday,...

Colombian farmers making honey their way of life

Socorro, Colombia, Mar 14 (efe-epa).- Bees do not sting German Perilla even if he opens their hives with his bare hands. The scientist from George Mason...

Visa busca darle nada qué robar a la multimillonaria industria del fraude

Miami, Mar 14 (epa-efe).- Instead of building a "wall" to protect digital payments, Visa opts to reduce the amount of information contained in transactions...

Brazil to auction licenses to operate 12 regional airports

Sao Paulo, Mar 14 (efe-epa).- Brazilian President Jair Bolsonaro's administration on Friday will auction licenses to operate 12 regional airports, a process...

Aerospace giant Boeing tries to limit the fallout

Chicago (USA), Mar 14 (efe-epa).- The global grounding of Boeing's most popular model is likely to generate a host of business challenges for the aerospace...

Japanese women mobilize online against having to wear high heels to work

Tokyo, Mar 14 (efe-epa).- A social media campaign against employers forcing women to wear high heels to work has been picking up pace in Japan, drawing...

Bank of Japan meets to discuss course of action as indicators point to slump

Tokyo, Mar 14 (efe-epa).- The Bank of Japan on Thursday kicked off its monthly meeting on monetary policy, in which it is expected to analyze the direction...

Caracas says power 100 pct. restored, US says Maduro has upped repression

Caracas, Mar 13 (efe-epa).- Venezuelan Communications Minister Jorge Rodriguez said Wednesday that electric service has been 100 percent restored nationwide...

Trump orders grounding of Boeing 737 Max planes

Washington, Mar 13 (efe-epa).- President Donald Trump said Wednesday that he was ordering the immediate grounding of all Boeing 737 Max 8 and Max 9 aircraft...

Tequila makes its mark in China after sustained marketing efforts

Shanghai, China, Mar 13 (efe-epa).- After a long and arduous campaign, Mexico's signature drink tequila is slowly making its mark in China, a market that...

Thailand closes air traffic to Boeing 737 MAX 9

Bangkok, Mar 13 (efe-epa).- Thai authorities announced Wednesday that it will close its airspace to Boeing 737 MAX 9 planes over security concerns after a...

Volkswagen to cut up to 7,000 jobs through 2023 to finance move to electric

Frankfurt (Germany), Mar 13 (efe-epa).- German vehicle manufacturer Volkswagen has said it plans to cut up to 7,000 jobs over the next five years in a bid...

Spotify files EU antitrust complaint over Apple's app store

Madrid, March, 13 (efe-epa).- Music-streaming service Spotify has filed an antitrust complaint in Europe against Apple, a new salvo in the broader battle...

Hong Kong bans Boeing B737 MAX aircrafts from its airspace

Hong Kong, Mar 13 (efe-epa).- Hong Kong authorities on Wednesday announced they will be temporarily banning all Boeing B737 MAX aircrafts from its airspace,...

I agree Welcome to news4europe.eu. We use cookies to improve your online experience. Find out more.