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Boeing scraps 2019 financial forecast, halts share buybacks in wake of 737 MAX disaster

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World’s biggest aerospace corporation was forced to pull its full financial forecast for the current year due to unresolved issues surrounding Boeing’s once best-selling 737 MAX aircraft.

Boeing also announced plans to pause share buybacks, citing “a challenging time for our customers, stakeholders and the company.”

“Across the company, we are focused on safety, returning the 737 MAX to service, and earning and re-earning the trust and confidence of customers, regulators and the flying public,” Boeing Chairman and CEO Dennis Muilenburg said in a statement.

The manufacturer had previously posted a report on the first-quarter earnings that managed to fall in line with analysts’ expectations, while its revenue was slightly less than projected. Boeing’s earning per share totaled the expected $3.16 from January through March, while the revenue amounted to $22.92 billion against $22.98 billion forecasted by London-based provider of financial markets data Refinitiv.

Boeing stressed that the previous guidance didn’t reflect the impact of two crashes of the company’s flagship planes, leading to the grounding of all 737 MAX 8 jets by global regulators, lawsuits from some air carriers and a decline in market value.

According to the producer, more than 135 test and production flights of updated software for the 737 MAX have been carried out so far.

Boeing’s bestseller crashed on March 10 not far from the Ethiopian capital of Addis Ababa six minutes after takeoff on the way to Nairobi, Kenya. The tragedy, which killed 157 people, marked the second crash involving the same jet model in less than six months. In October, the same type of aircraft, operated by Indonesia’s Lion Air, crashed in the Java Sea shortly after takeoff, claiming the lives of 189 people.

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Beach Vacation: What you do if a shark is about to attack?

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Shark and humans

Shark attack! The United States is the most dangerous country in the world when it comes to bloody encounters between people and sharks. It’s especially true in regions where tourism is big business.

In Hawaii, children are always taught two things about the ocean and sharks.
Today a 65-year-old visitor vacationing on the Island of Hawaii was bitten on her right inner upper thigh by a shark.  The bite mark was approximately 12 inches in diameter.

She was around several hundred yards offshore and brought in prone on a kayak via bystanders and does not remember events prior to being bitten. The victim was transported in stable condition to the hospital. A helicopter conducted a shoreline check within an hour of the incident, surveying several miles of ocean and along the coastline with no shark sightings.

What children are always taught in Hawaii about the ocean and sharks is to never turn your back on the ocean because then you won’t be aware of wave swells or anything heading in your direction. They are also taught to never go in the ocean alone. You never know when you will need someone’s help or you will need to help someone in distress.

When you enter the ocean, you are going into the domain of many aquatic animals, the scariest of which is the shark. Are there ways to avoid being attacked by a shark? Here, knowledge is definitely power.

If you see a shark and it is behaving aggressively, the best thing you can do is remain calm and as motionless as possible. While it may be hard not to panic, by not thrashing the water or screaming, this will likely be the biggest factor in whether or not you may be bitten.

Don’t attract attention to yourself by wearing jewelry that shines and reflects light. It can cause sharks to mistake you for a fish in murky water.

If you see a bait ball, get out! A bait ball is when small fish swarm in a tightly packed spherical formation and is a last-ditch defensive measure when they are threatened by predators – as in sharks.

Before you even go in the water, if you see animal remains on the beach, like dead seals, fish, or whales, there are more likely to be sharks in the water.

Although a shark will be in the water at all times, they mostly hunt at dawn, dusk, and at night because the low light makes it harder for prey to see them coming, and many fish are most active at dusk. Plan your ocean activities accordingly.

Be vigilant around areas with a steep drop-off, because certain species like the great white shark will use the deep water to ambush potential prey.

If despite all your best efforts to avoid a shark, an attack occurs, punch the shark in the nose or eyes, and use anything you have (surfboard, dive tank, etc.) to put it between the shark and yourself.

Immediately seek help from others. If no one is around, use your shirt, wetsuit, surf leash, or anything long enough to tie a tourniquet above the wound on yourself or the person attacked. If the incident occurs while surfing, put the person on a board.

Stay in a group as this will deter sharks from investigating further.

When you get to the beach, keep the legs elevated by pointing the attacked person’s head toward the water as the shore slopes down into the ocean.

Apply pressure directly to the wound with a towel or shirt until emergency responders arrive.

And in the ultimate prevention, first aid and CPR classes are extremely valuable for unexpected situations like a shark attack. Preparation is key and will increase your confidence in the ocean and in life.

Here is a story on the Great White Shark Attack in Australia.



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American Airlines to keep its Boeing 737 MAX jets grounded until August

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American Airlines has chosen to keep its fleet of Boeing 737 MAX grounded until at least August 19, even if it means canceling 115 flights a day in summer season, as probes into the troubled jet continue and new sales have frozen.

The company, which owns 24 of the embattled jets that were involved in two recent deadly crashes, announced the decision in a letter to employees and customers. AA wants to ensure reliability “for the peak travel season and provide confidence to our customers and team members when it comes to their travel plans,” Chief Executive Doug Parker and President Robert Isom wrote.

The 737 MAX 8 airliners were grounded worldwide after a fatal crash of an Ethiopian Airlines flight, which killed 157 people on board. The incident came months after a crash of the same model operated by Lion Air was apparently linked to the same faulty flight control system.

Parker and Isom have at the same time expressed confidence in Boeing’s ability to fix the problem through software updates and changes to pilot training procedures. The US airline has 24 MAX planes in its fleet and is expected to get 16 more delivered this year. The grounding has already resulted in the cancelation of about 90 flights per day through early June, and the extension may put a strain on American’s ability to meet demand for seats during upcoming peak travel season. As many as 115 daily flights will have to be canceled in August, according to the letter.

The crashes have left Boeing open to criticism over the way it certified the fast-selling model, conducting some of the tests in-house with the permission of the Federal Aviation Authority. Critics say the producer cut corners to fast-track the new model to the market, compromising flight safety as a result.

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Date set for the opening of the Vatican secret archives

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On March 2, 2020, Pope Francis will open the secret archives of the pontificate of Pius XII on the Second World War.

The announcement during the audience to the staff of the Vatican secret archives was, “The Church is not afraid of history, indeed it loves it.” And on the reading of the Pontificate, he said: “In the criticisms against Pius XII prejudices and exaggerations.”

Pope Bergoglio’s Tweet from March 4, 2019 said, “I decided that the opening of the Vatican Archives for the Pontificate of Pius XII will take place on March 2, 2020, exactly one year after the eightieth anniversary of Eugene Pacelli’s election to the Soglio di Pietro.”

Thus the Pope in the audience with his superiors, as well as the employees and collaborators of the Vatican Secret Archives, whose “constant and not slight commitment,” said Francesco, “allows me today, in memory of that significant anniversary, to announce my decision  to open to the consultation of researchers the archival documentation pertaining to the Pontificate of Pius XII, until his death, which took place at Castel Gandolfo on 9 October 1958.

Regarding the Pope’s decision, “I assume this decision,” the Pontiff explained, “having heard the opinion of my closest collaborators, with a serene and confident spirit, confident that the serious and objective historical research will be able to evaluate in its right light, with appropriate criticism, moments of exaltation of that Pontiff and, undoubtedly also moments of grave difficulties, of tormented decisions, of human and Christian prudence, which to some may have seemed reticence, and which instead were attempts, humanly even much fought, to keep on, in the periods of more thick darkness and cruelty, the flame of humanitarian initiatives, of hidden but active diplomacy, of hope in possible good hearts’ openings.

“The Church is not afraid of history, on the contrary, she loves it.”

In explaining his decision, the Pope recalled that “the Church is not afraid of history; indeed, loves it and would like to love it more and better, as God loves it! So, with the same confidence as my predecessors, I open and entrust this documentary heritage to researchers.”

“While I thank you again for the work accomplished,” he added to the staff of the Vatican Secret Archives, “I wish you to continue the commitment to assist researchers – scientific and material assistance – and also in the publication of Pacellian sources that will be deemed important, as you have already been doing for some years.”

The Union of Italian Jewish Communities (UCEI) is good to reconstruct the role of the Church during the Holocaust, stating, “We welcome with great appreciation the decision of Pope Bergoglio to open the secret archive related to the figure of Pius XII. It is positive that we want to make this opening, because it will give way to all those that deal with research to access material of unpublished interest to be able to reconstruct with even more clarity the position of the Church also in the period of the Shoah.”

This was underlined by the president of the Union of Italian Jewish Communities, Noemi Di Segni, and also the president of the Jewish community of Rome, Ruth Dureghello, who commented on the news: “The hope now is that we can clarify the role played by Pius XII during the Second World War.”

“Unfortunately we will have to wait for 2020, in a year and a half,” he underlined. “Better late than never. It is positive news from which we hope to obtain clarity on that historical period and on the role played by the Pope.”

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U.S. Department of Homeland Security McAleenan appointment: U.S. Travel Association issues statement

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U.S. Travel Association President and CEO Roger Dow issued the following statement on the announced appointment of Kevin K. McAleenan as acting secretary of the Department of Homeland Security:

“In Mr. McAleenan we have an ally with a full and complete understanding of both national security and the importance of facilitating cross-border trade, which includes travel.

“U.S. Travel has had the pleasure of engagement with Mr. McAleenan for over a decade, given his immediate past roles with Customs and Border Protection. The American travel community’s experience with Mr. McAleenan gives us every confidence that he is the right choice to lead DHS through these challenging times.

“On behalf of America’s travel industry, I look forward to a continued positive relationship with Mr. McAleenan and DHS, and look forward to seeing this critically important role filled on a long-term basis.”

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Ethiopian Airlines has a statement on preliminary crash report

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Ethiopian Airlines had a tragic year so far, but it appears without fault to the carrier. The preliminary report about ET 302 crash on March 10 came in and the airline responded with the following statement:

The preliminary report clearly showed that the Ethiopian Airlines Pilots who were commanding Flight ET 302/10 March have followed the Boeing recommended and FAA approved emergency procedures to handle the most difficult emergency situation created on the airplane. Despite their hard work and full compliance with the emergency procedures, it was very unfortunate that they could not recover the airplane from the persistence of nose diving. As the investigation continues with more detailed analysis, as usual, we will continue with our full cooperation with the investigation team.

Group CEO, Tewolde GebreMariam said that “ All of us at Ethiopian Airlines are still going through deep mourning for the loss of our loved ones and we would like to express our deep sympathy and condolences for the families, relatives, and friends of the victims. Meanwhile; we are very proud of our pilots’ compliances to follow the emergency procedures and high level of professional performances in such extremely difficult situations. We are also very proud of our Global standard Pilot Training Center and the Ethiopian Aviation Academy which is one of the largest and most modern in the world equipped with state of the art and latest training technologies.

I would also like to take this opportunity to thank our valued customers, the traveling public, the media and Global aviation professionals for the remarkably high level of a vote of confidences and strong support that you have been giving us starting from the day of this tragic accident. We will double our efforts every single day to win your confidence and earn your business. Your Safety will remain our top most priority and we will continue to work together with our partners around the world to make air travel safer and more comfortable. My highest appreciation also goes to my 16, 000 colleagues at Ethiopian Airlines for their resilience, high standards of professionalism and their continued commitment for operational excellence and their award-winning customer services which enabled us to continue our business without any operational disruption, flight delays or flight cancellations.”

Ethiopian Airlines (Ethiopian) is the fastest growing Airline in Africa. In its seventy plus years of operation, Ethiopian has become one of the continent’s leading carriers, unrivalled in efficiency and operational success.

Ethiopian commands the lion’s share of the Pan-African passenger and cargo network operating the youngest and most modern fleet to more than 119 international passenger and cargo destinations across five continents. Ethiopian fleet includes ultra-modern and environmentally friendly aircraft such as Airbus A350, Boeing 787-8, Boeing 787-9, Boeing 777-300ER, Boeing 777-200LR, Boeing 777-200 Freighter, Bombardier Q-400 double cabin with an average fleet age of five years. In fact, Ethiopian is the first airline in Africa to own and operate these aircraft. Ethiopian is currently implementing a 15-year strategic plan called Vision 2025 that will see it become the leading aviation group in Africa with Six business centers: Ethiopian International Services; Ethiopian Cargo & Logistics Services; Ethiopian MRO Services; Ethiopian Aviation Academy; Ethiopian ADD Hub Ground Services and Ethiopian Airports Services. Ethiopian is a multi-award winning airline registering an average growth of 25% in the past seven years.

Mr. Asrat Begashaw

Manager Corporate Communications, Ethiopian Airlines

Tel 🙁 251-1)517-89-07/656/165/913/529

CorporateCommunication@ethiopianairlines.com

www.ethiopianairlines.com

www.facebook.com/ethiopianairlines

www.twitter.com/flyethiopian

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IATA Report: Aviation continues to deliver solid

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The International Air Transport Association (IATA) announced global passenger traffic results for February 2019 showing total revenue passenger kilometers (RPKs) rose 5.3%, compared to February 2018. This was the slowest rate of growth in more than a year but still in line with long-term demand trends. Monthly capacity (available seat kilometers or ASKs) increased by 5.4%, and load factor slipped 0.1 percentage point to 80.6%, which is still high by historic standards.

“After January’s strong performance, we settled down a bit in February, in line with concerns about the broader economic outlook. Continuing trade tensions between the US and China, and unresolved uncertainty over Brexit are also weighing on the outlook for travel,” said Alexandre de Juniac, IATA’s Director General and CEO.

February 2019
(% year-on-year)		 World share1 RPK ASK PLF
(%-pt)2		 PLF
(level)3
Total Market 100.0% 5.3% 5.4% -0.1% 80.6%
Africa 2.1% 2.8% 1.1% 1.1% 70.4%
Asia Pacific 34.5% 6.3% 5.8% 0.4% 82.6%
Europe 26.7% 7.3% 7.7% -0.3% 81.5%
Latin America 5.1% 5.0% 5.5% -0.4% 81.3%
Middle East 9.2% -0.9% 2.7% -2.6% 72.6%
North America 22.4% 4.2% 3.9% 0.3% 80.8%

 

nternational Passenger Markets

February international passenger demand rose 4.6% compared to February 2018, which was a slowdown from 5.9% growth in January. Capacity climbed 5.1%, and load factor dropped 0.4 percentage point to 79.5%. Airlines in all regions but the Middle East showed traffic growth versus the year-ago period.

  • European carriers showed the strongest performance for a fifth consecutive month in February. Passenger demand increased by 7.6%, compared to a year ago, unchanged from January. Europe’s continuing strong performance provides a paradox given Brexit concerns and signs of a softer economic outlook. Capacity rose 8.0% and load factor slid 0.3 percentage point to 82.3%, which still was the highest among regions.
  • Asia-Pacific airlines’ February traffic rose 4.2% compared to the year-ago period, a substantial slowdown from the 7.2% increase recorded in January. The timing of the Lunar New Year holiday in the first week of February this year may have shifted some traffic to January. Capacity increased 4.7% and load factor dipped 0.3 percentage point to 81.0%.
  • Middle East carriers recorded a 0.8% traffic decline in February compared to a year ago, the only region to report a drop year-over-year. Capacity rose 2.9% and load factor fell 2.7 percentage points to 72.6%. Broadly speaking, passenger volumes of the region’s airlines have been moving sideways for the past 12 – 15 months.
  • North American airlines’ traffic climbed 4.2% in February, a decline from 5.4% growth in January. Capacity rose 2.9% and load factor was up 1.0 percentage point to 79.0%. Signs of softening economic activity at the end of 2018, in conjunction with the effects of ongoing tensions between the US and several of its trading partners, may be mitigated by the region’s low unemployment and generally sound economic backdrop.
  • Latin American airlines saw traffic rise 4.3% compared to February 2018, a slippage from 5.4% annual growth in January. Capacity increased by 5.6%, and load factor dropped 1.0 percentage point to 81.4%. Renewed economic and political uncertainties in a number of key countries may weigh upon air transport demand in coming months.
  • African airlines experienced a 2.5% rise in traffic for the month compared to the year-ago period, down from 5.1% growth in January. Concerns over conditions in the largest economies are contributing to the slowdown. Capacity rose 0.3%, and load factor climbed 1.5 percentage points to 69.7%.

Domestic Passenger Markets

Domestic travel demand rose 6.4% in February compared to February 2018, down from 7.4% annual growth in January. All markets except Australia reported increases in traffic, with India recording its 54th consecutive month of double-digit percentage growth. Domestic capacity climbed 5.8%, and load factor edged up 0.5 percentage point to 82.4%.

 

  • China topped the growth chart for a second month in a row, with RPKs up a strong 11.4% year-on-year, although this was down from 14.5% growth in January compared to a year ago.
  • Brazil’s domestic traffic increased 5.8% in February, compared to a year ago, the fastest pace in more than six months and more than double the 2.6% year-over-year rise for January. Brazil was the only domestic market tracked by IATA to show an increase in the year-on-year growth rate compared to January 2019.

The Bottom Line

“While overall economic confidence appears to be softening, aviation continues to deliver solid results, helping to sustain global commerce and the movement of people. The Brexit deadline has come and gone with no separation agreement, but with vital air connectivity between the UK and the Continent maintained for the present. Temporary measures, however, are no substitute for a comprehensive Brexit package that will ensure that the Business of Freedom is able to play its vital role in contributing to the well-being of the region—and the world,” said de Juniac.

Read the full February Passenger Traffic Analysis  (pdf)

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Air freight demand still spiraling down

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For the fourth consecutive month, global air freight performance has reported a negative year-on-year growth and the worst performance in the last three years. The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight ton kilometers (FTKs), decreased 4.7% in February 2019, compared to the same period in 2018.

Freight capacity, measured in available freight ton kilometers (AFTKs), rose by 2.7% year-on-year in February 2019. This was the twelfth month in a row that capacity growth outstripped demand growth.

Demand for air cargo continues to face significant headwinds:

  • Trade tensions weigh on the industry;
  • Global economic activity and consumer confidence have weakened;
  • And the Purchasing Managers Index (PMI) for manufacturing and export orders has indicated falling global export orders since September 2018.

“Cargo is in the doldrums with smaller volumes being shipped over the last four months than a year ago. And with order books weakening, consumer confidence deteriorating and trade tensions hanging over the industry, it is difficult to see an early turnaround. The industry is adapting to new markets for e-commerce and special cargo shipments. But the bigger challenge is trade is slowing. Governments need to realize the damage being done by protectionist measures. Nobody wins a trade war. We all do better when borders are open to people and to trade,” said Alexandre de Juniac, IATA’s Director General and CEO.

 

Regional Performance

All regions reported a contraction in year-on-year demand growth in February 2019 except for Latin America.

  • Asia-Pacific airlines saw demand for air freight contract by 11.6% in February 2019, compared to the same period in 2018. Weaker manufacturing conditions for exporters in the region, ongoing trade tensions and a slowing of the Chinese economy impacted the market. Capacity decreased by 3.7%.

 

  • North American airlines saw demand contract by 0.7% in February 2019, compared to the same period a year earlier. This was the first month of negative year-on-year growth recorded since mid-2016, reflecting the sharp fall in trade with China. North American carriers have benefited from the strength of the US economy and consumer spending over the past year. Capacity increased by 7.1%.

 

  • European airlines experienced a contraction in freight demand of 1.0% in February 2019 compared to a year ago. The decline is consistent with weaker manufacturing conditions for exporters in Germany, one of Europe’s major economies. Trade tensions and uncertainty over Brexit also contributed to a weakening in demand. Capacity increased by 4.0% year-on-year.

 

  • Middle Eastern airlines’ freight volumes contracted 1.6% in February 2019 compared to the year-ago period. Capacity increased by 3.1%. A clear downward trend in seasonally-adjusted international air cargo demand is now evident with weakening trade to/from North America contributing to the decrease.

 

  • Latin American airlines posted the fastest growth of any region in February 2019 versus last year with demand up 2.8%. Despite the economic uncertainty in the region, a number of key markets are performing strongly. Seasonally-adjusted international freight demand achieved growth for the first time in six months. Capacity increased by 14.1%.

 

  • African carriers saw freight demand decrease by 8.5% in February 2019, compared to the same month in 2018. Seasonally-adjusted international freight volumes are lower than their peak in mid-2017; despite this, they are still 25% higher than their most recent trough in late-2015. Capacity grew 6.8% year-on-year.

View full February freight results (pdf).

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Travel Trends Index: International and domestic travel growth projected to dwindle

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Travel to and within the U.S. grew 3.2% year-over-year in February, according to the U.S. Travel Association’s latest Travel Trends Index (TTI).

However, the predictive Leading Travel Index (LTI) continues to project a slowdown in both international and domestic travel growth, as both segments could continue to feel the effects of rising trade tensions, volatile financial markets and weakening business and consumer confidence. These factors have the potential to stunt travel growth and dull American competitiveness at a time when the U.S. is seeking to reverse its declining share of the global international travel market.

Though international inbound travel grew for the ninth consecutive month, the segment grew only 1.4% in February. Domestic travel increased 2.8% year-over-year in February, with growth in both the business and leisure travel segments. Domestic business travel outpaced the leisure segment for the first time since October 2018, registering slightly above its six-month moving average with a 3.0% growth. Leisure growth fell slightly below its six-month moving average with a more tepid 2.6% growth rate.

Looking ahead, domestic and international inbound travel are both projected to grow, but at a moderate pace.

Said U.S. Travel Senior Vice President for Research David Huether: “Growth is expected to decelerate in the case of domestic travel while international inbound travel is projected to remain soft. This is consistent with an expectation of stable-yet-moderating economic growth both in the U.S. and globally.”

U.S. Travel economists caution that this decelerated growth rate will make it even more difficult for the U.S. to regain its diminishing share of the global international travel market. Acting on certain legislative initiatives—such as Brand USA’s long-term reauthorization and the rebranding and expansion of the Visa Waiver Program—can help the U.S. increase competitiveness in the global travel market.

The TTI is prepared for U.S. Travel by the research firm Oxford Economics. The TTI is based on public and private sector source data which are subject to revision by the source agency. The TTI draws from: advance search and bookings data from ADARA and nSight; airline bookings data from the Airlines Reporting Corporation (ARC); IATA, OAG and other tabulations of international inbound travel to the U.S.; and hotel room demand data from STR.

Click here to read the full report.

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Shenyang EXPO begins third year with optimism

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hree major exhibitions since March 15th have very successfully launched the third year of operations at the Shenyang New World EXPO (“EXPO”). The combined attendance exceeded 124,000 visitors and two of the three shows grew over 10% in licensed area compared to 2018.

Diane CHEN, EXPO General Manger expressed confidence that Shenyang, the capital of Liaoning Province in northeast China, would continue to experience growth. She cited excellent facilities, location and absolute government support as factors igniting the growth since the venue opened in March of 2017. Shenyang boasts of an excellent international airport with nearly 400 daily arrivals and departures along with high speed train service connecting all major cities in northeast China including Beijing. The city’s population exceeds 8 million.

Despite that China’s economy has slowed somewhat, management of the Shenyang New World EXPO (‘EXPO’) is significantly optimistic about the potential growth of the exhibition and meeting industry in Shenyang. Regional and national organisers are also showing serious interest in the market.

The first three major exhibitions of 2019, all recurrent, included the 2019 Advertising Festival (organised by Shanghai Modern International Exhibition Co., Ltd), the 21st China Northeast International Dental Equipment & Affiliated Facilities Exhibition Symposium on Oral Health and the 25th China Northeast International Building & Decoration Exhibition (both the latter exhibitions organised by Liaoning Northern Exhibition Co., Ltd).

Cliff Wallace, who led in EXPO’s operational and functional planning as well as its management staff organisation said, “I am especially pleased that the Dental Exhibition was audited by UFI, The Global Association of the Global Industry. I anticipate approval by UFI as the venue’s first UFI Approved Event.”

Liaoning Northern Exhibition GM, LI Zhi Song stated, “I anxiously await the anticipated news from UFI confirming our Dental Exhibition has achieved UFI approved status. An “UFI Approved Exhibition” is proof of high quality, thus providing exhibitors and visitors alike with the assurance of making a sound business investment.”

Wallace is an Honorary President of UFI and continues to advise EXPO relative to achieving its vision which is to be among China’s best venues with a dedicated professional staff delivering superb levels of customer care.

Four major exhibitions will be held in April again signifying the success of EXPO, northeast China’s newest venue offering 24,000 sqm (260,000 sq ft) of rental space to the market for exhibitions, conference and other events. In addition to transportation advantages including the venue’s own connected METRO station, the city continues to expand its hospitality industry adding state-of-the-art major brand hotels. Rooms within 10 km (6 miles) of EXPO now total over 19,000.

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