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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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28 killed in Portugal bus crash, many German tourists

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A bus reported to be carrying tourists, including many from Germany, crashed on the island of Madeira in Portugal, killing at least 28.

Filipe Sousa, the mayor of Santa Cruz, said that 17 women and 11 men were killed in Wednesday’s accident.

Several others were wounded after the vehicle overturned near the town of Canico.

The cause of the crash, which happened in daylight in the early evening, was not immediately clear.

Images on Portuguese media showed an overturned white bus surrounded by firefighters. SIC television said there were 19 ambulances at the scene.

“I have no words to describe what happened. I cannot face the suffering of these people,” Sousa told SIC television.

Portugal’s President Marcelo Rebelo de Sousa said he would travel to Madeira overnight.

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Tour helicopter crash lands in Oahu’s Sacred Falls Valley

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Honolulu rescuers have received a call of a downed tour helicopter shortly after 11:30 Tuesday morning.

Six units including the Honolulu Fire Department’s Air 1 helicopter responded to the area of Sacred Falls in Hauula at about 11:36 a.m. Honolulu Fire Spokesman Capt. Scot Seguirant said there were four people on board of aircraft that has made a possible hard landing.

According to FAA, the Hughes 369E helicopter, registered to Paradise Helicopters, made a hard landing in Sacred Falls Valley, about 17 miles north of Honolulu’s Daniel K. Inouye International Airport. No one was injured.

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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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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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New Ethiopian crash report: What happened in the final moments?

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The newest report that broke overnight about the Ethiopian airline crash states that the pilots initially followed Boeing’s emergency procedure before the fatal crash.

The report suggests that the pilots did turn off the automatic pilot system when the aircraft first took a nose dive, but then for some reason, they turned it back on. The fatal crash followed.

The procedure is for the pilots to turn off 2 switches which turns off the electricity to the auto pilot system. They then have to manually level out the aircraft using a wheel in the cockpit controls.

It is not known why they decided to turn the auto pilot system back on.

Boeing has a software fix they were expecting to file this past Friday, but this has now been delayed for possibly 4 weeks or even longer.

This means that American Airlines and Southwest Airlines, the two major airlines that fly the 737 Max planes, will continue to have to cancel flights.

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Xtra Aerospace in Florida also responsible for Boeing 737 Max crash?

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Our purpose is to ensure each flight is safe and cost-effective every day. This is the message on the Xtra Aerospace website. The Xtra Aerospace states their maintenance division can provide optimal maintenance to all of the unique aviation needs.

Xtra Aerospace may have been very much off on this goal when in Indonesia a Lion Air Boeing 737 MAX crashed after it was repaired in a U.S. aircraft maintenance facility and the so-called angle-of-attack sensor was replaced. This sensor sent erroneous signals causing repeated nose-down movements on the Oct. 29 flight that pilots struggled with until the Boeing Max plunged into the Java Sea. Everyone on board, 189 people were killed.

XTRA Aerospace is an FAA/EASA/ANAC certified repair station located in Miramar, Florida, USA.

Documents obtained by Bloomberg News show the repair station, XTRA Aerospace Inc. in Miramar, Fla., had worked on the sensor. It was later installed on the Lion Air plane on Oct. 28 in Bali, after pilots had reported problems with instruments displaying speed and altitude. There’s no indication the Florida shop did maintenance on the Ethiopian jet’s device, according to Bloomberg.

Xtra Aerospace states: ” We specialize in the repair of instruments, radio & mechanical/electrical accessories. XTRA offers extensive capabilities servicing the A300, A320 family/A330/A340 and Boeing 737 thru 777. We are proud to serve the world’s top airlines and suppliers with one goal… complete customer satisfaction.

XTRA Aerospace welcomes the U.S. Government. XTRA is DD2345 certified to obtain military critical technical data. XTRA’s cage code is 5FWE2 and we look forward to helping you with all your sourcing and repair needs.”

U.S. teams assisting the Indonesian investigation reviewed the work by the company to ensure that there weren’t additional angle-of-attack sensors in the supply chain with defects, said a person familiar with the work. They didn’t find any evidence of systemic issues on other sensors the company may have worked on.

Bloomberg states in their article:

“Much of the concern by regulators and lawmakers after the Lion Air and Ethiopian Airlines crashes has focused on Boeing’s design of the Maneuvering Characteristics Augmentation System, or MCAS, which was programmed to push down a plane’s nose to help prevent aerodynamic stalls in some situations. But the preliminary report by Indonesia on the Lion Air crash shows that maintenance and pilot actions are also being reviewed.

It’s common for licensed repair stations to overhaul older parts so they can be resold, said John Goglia, a former member of the NTSB who earlier worked as an airline mechanic. Airlines can save money buying used parts and U.S. regulations require that the parts meet legal standards, Goglia said.

If the sensor was repaired at XTRA Aerospace, “it would have to go through what the manual says to overhaul it,” he said. “That means all the steps.”

The Indonesian preliminary report doesn’t say what went wrong with the device but indicates that the plane’s maintenance is a subject of the investigation.”

The Ethiopian Airlines 737 Max that crashed on March 10 also apparently had issues with the same type of sensor, which triggered a safety system on the plane that was driving down the plane’s nose, according to people familiar with the accident. In that case, investigators are still attempting to locate one of the sensors to help determine why it malfunctioned.

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Confirmed: Auto anti-stall system on before Ethiopian Max jet crash

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It has been confirmed that investigators have determined the automatic anti-stall system as activated before the Ethiopian Airlines Boeing 737 Max jet crash.

This initial determination is based on information from the aircraft’s data and voice recorders, which shows that the malfunctioning automated system may be responsible for the deadly March 10 crash.

This preliminary determination was made known during a briefing at the US Federal Aviation Administration (FAA) yesterday. It is also known that the auto anti-stall system was activated on the Indonesian Lion Air 737 Max jet crash.

The preliminary findings could be revised, but right now they point to the system, called MCAS (or Maneuvering Characteristics Augmentation System) as the potential cause of both crashes. Regulators say the Ethiopian Airlines Max jet followed a similar flight path to the Lion Air flight, including erratic climbs and descents before crashing minutes after takeoff.

The MCAS system is designed to automatically point the nose of the jets down if it senses potential for a loss of lift, or aerodynamic stall. Aircraft can lose lift from the wings and fall from the sky if the nose points too high. The system also makes the Max fly similarly to older generations of Boeing’s 737, negating the need for a lot of added pilot training.

Boeing is working on a software update to the auto anti-stall system so that the nose will point down only once instead of around 21 times as happened in the Lion Air crash making it easier for pilots to override it.

Ethiopian officials are expected to release their preliminary report soon.

The 737 Max 8 has been grounded worldwide due to the crashes as Boeing works on an update to its software to make the planes safer.

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Is there a right way to take a Staycation?

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Can you really not go anywhere and call it a vacation? Even more importantly, can you take time off, stay at home or go away, and unplug from the office? As the Staycation enters its second decade, what’s changed and made it an attractive alternative for many families?

“The Staycation became a thing after the 2008 crash when many families simply didn’t have the resources to take that trip to Disney World or the rental fee for that lakeside cabin or ocean cottage, so they stayed at home for vacation,” said Peter Hans, president of Discovery Map International since 2005. “This year, there are a number of families who didn’t quite get as large a tax return as they had in years past. Consequently, the Staycation is back on the table for some families.”

While the Staycation may be in its second decade, the ground rules for fun and stress-free breaks remain pretty much the same. For starters, no contact with your office allowed. Just because you’re not going away for an extended trip is no reason to be calling in to the office. Time off is meant for you to rest up and recharge your batteries. You can’t do that if you’re never mentally away.

Hans said: “You also want to limit your computer time. Remember, you’re on vacation. Restrict your computer time to researching potential day trips. NO E-MAIL, unless you’re being sent a confirmation or reservation number.”

He also recommends not setting an alarm if you don’t have to. Remember, you are on nobody’s schedule but your own. You also want to limit your household chores that week unless you’re specifically taking the week off to complete a project, e.g. painting your house, keep your home chores to a minimum. That doesn’t mean let the dishes in the sink stack up. Just don’t sweat it if the lawn goes a few days without being cut.

Additionally, a rather bold suggestion for your Staycation is: Leave your cell phone off unless you need to use it. Said Hans, “Your phone can be handy if you’re traveling with other families or your group splits off into two’s. So, leaving it home is not practical. Just make sure you don’t take calls from anybody not in your vacation group. If you’re curious or worried about an emergency, just check the voice mail they leave.”

Continued Hans, “If you were on a cruise ship you wouldn’t answer a call from the office. Your Staycation deserves that same respect. Remember, you work hard for your time off and you owe it to yourself — your family and — believe it or not, your employer to come back rested and ready with your batteries fully recharged.”

For more information on Discovery Map, visit discoverymap.com.

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Ethiopian Airlines CEO believes in The New Spirit of Africa and pledges to work with Boeing

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Tewolde GebreMariam, Group CEO, Ethiopian Airlines issued a statement today.

He wrote: “It has been more than two weeks since the tragic crash of Ethiopian Airlines flight 302. The heartbreak for the families of the passengers and crew who perished will be lasting. This has forever changed their lives, and we at Ethiopian Airlines will feel the pain forever. I pray that we all continue to find strength in the weeks and months ahead.

The people of Ethiopia feel this very deeply, too. As a state-owned airline and the flagship carrier for our nation, we carry the torch for the Ethiopian brand around the world. In a nation that sometimes is saddled with negative stereotypes, accidents like this affect our sense of pride.

Yet this tragedy won’t define us. We pledge to work with Boeing and our colleagues in all the airlines to make air travel even safer.

As the largest aviation group on the continent of Africa, we represent The New Spirit of Africa and will continue to move forward. We are rated as a 4-star global airline with a high safety record and member of Star Alliance. That will not change.

Full Cooperation

The investigation of the accident is well underway, and we will learn the truth. At this time, I do not want to speculate as to the cause. Many questions on the B-737 MAX airplane remain without answers, and I pledge full and transparent cooperation to discover what went wrong.

As it is well known in our global aviation industry, the differences training between the B-737 NG and the B-737 MAX recommended by Boeing and approved by the U.S. Federal Aviation Administration called for computer-based training, but we went beyond that. After the Lion Air accident in October, our pilots who fly the Boeing 737 Max 8 were fully trained on the service bulletin issued by Boeing and the Emergency Airworthiness Directive issued by the USA FAA. Among the seven Full Flight Simulators that we own and operate, two of them are for B-737 NG and the B-737 MAX. We are the only airline in Africa among the very few in the world with the B-737 MAX full flight Simulator. Contrary to some media reports, our pilots who fly the new model were trained on all appropriate simulators.

The crews were well trained on this aircraft.

Immediately after the crash and owing to the similarity with the Lion Air Accident, we grounded our fleet of Max 8s. Within days, the plane had been grounded around the world. I fully support this. Until we have answers, putting one more life at risk is too much.

Belief in Boeing, U.S. Aviation

Let me be clear: Ethiopian Airlines believes in Boeing. They have been a partner of ours for many years. More than two-thirds of our fleet is Boeing. We were the first African airline to fly the 767, 757, 777-200LR, and we were the second nation in the world (after Japan) to take delivery of the 787 Dreamliner. Less than a month ago, we took delivery of yet another new two 737 cargo planes (a different version from the one that crashed). The plane that crashed was less than five months old.

Despite the tragedy, Boeing and Ethiopian Airlines will continue to be linked well into the future.

We also are proud of our association with U.S. aviation. The general public does not know that Ethiopian Airlines was founded in 1945 with help from Trans World Airlines (TWA). In the early years, our pilots, flight crews, mechanics and managers were actually employees of TWA.

In the 1960s, after the handoff, TWA continued in an advisory capacity, and we’ve continued to use American jets, American jet engines and American technology. Our mechanics are Federal Aviation Administration (FAA) certified.

Our first direct passenger service to the U.S. began in June 1998, and today we fly direct to Africa from Washington, Newark, Chicago and Los Angeles. This summer, we will begin flying from Houston. Our cargo flights connect in Miami, Los Angeles and New York.

U.S. travel to Africa has increased more than 10 percent in the last year, second only to travel to Europe in term of the percentage increase — traveling to Africa has increased more than traveling to Asia, the Middle East, Oceania, South America, Central America or the Caribbean. The future is bright, and Ethiopian Airlines will be here to meet the demand.

In less than a decade, Ethiopian Airlines has tripled the size of its fleet – we now have 113 Boeing, Airbus and Bombardier aircraft flying to 119 international destinations in five continents. We have one of the youngest fleet in the industry; our average fleet age is five years while industry average is 12 years. Moreover, we have tripled the passenger volume, now flying more than 11 million passengers annually.

Each year, our Aviation Academy trains more than 2,000 pilots, flight attendants, maintenance workers and other employees for Ethiopian Airlines and several other African airlines. We are the company others turn to for aviation expertise. In the last 5 years, we have invested more than half a Billion dollars in training and other infrastructure in our Addis Ababa base.

We will work with investigators in Ethiopia, in the U.S. and elsewhere to figure out what went wrong with flight 302.

We resolve to work with Boeing and others to use this tragedy to make the skies safer for the world.”

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