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

April 24, 2019 by Forimmediaterelease

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

April 17, 2019 by Forimmediaterelease

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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India’s Jet Airways halts all international and domestic operations

April 17, 2019 by Forimmediaterelease

One of India’s major airlines, Jet Airways, has announced it is temporarily halting flight operations on Wednesday after the carrier failed to secure the “critical interim funding” necessary for the company to remain afloat.

Jet Airways will operate the last flight on Wednesday as it cancels all its international and domestic flights, the airline said in a statement. It explained that it cannot afford to pay for fuel or other critical services to keep the operations going, as all its months-long attempts to seek both interim and long-term funding were in vain.

“Unfortunately, despite its very best efforts, the airline has been left with no other choice today but to go ahead with a temporary suspension of flight operations,” the statement reads.

Earlier this month, the airline’s fleet was significantly reduced to just five aircraft and it was forced to suspend international operations. On Wednesday, the Jet Airways website listed only 37 domestic flights and had an additional nine-page list of canceled flights, saying that the schedule was impacted by “operational reasons.”

The troubled company failed to receive a stop-gap loan of about $217 million from its lenders as part of a rescue deal agreed in late March, Reuters earlier reported.

“Bankers did not want to go for a piecemeal approach which would keep the carrier flying for a few days and then again risk having Jet come back for more interim funding,” an unnamed bank source in the negotiations on the debt resolution process told the agency.

The uncertainty over the crucial funding crashed Jet Airways stock on Tuesday, with shares plunging around 20 percent.

Employees have been hit hardest by the crisis in the company and have reportedly not been paid in months. The pilots even called on the State Bank of India (SBI) to release the necessary funds and appealed to India’s Prime Minister Narendra Modi to save 20,000 jobs which may be lost in the shutdown.

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

April 3, 2019 by Forimmediaterelease

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

March 25, 2019 by Forimmediaterelease

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.”

Travel News | eTurboNews

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Viking Sky cruise ship safely towed to Norwegian port, 643 passengers rescued, 20 hospitalized

March 24, 2019 by Forimmediaterelease

A luxury Viking Sun cruise ship that was left floating due to engine failure and nearly crashed into the rocks in rough waters has safely arrived in the port of Molde on the west coast on Norway, with over 900 people on board.

The Viking Sky was towed to safety by two tugs, with one sailing in front of the vessel and another behind it.

The luxury cruise ship, which set sail with almost 1,400 passengers and crew aboard, sent out an SOS signal on Saturday. It was drifting in rough waters near a rocky coast after all its engines stopped working.

At some point, it approached the land at the distance of just 100 meters, with passengers posting dramatic photos. But the crew was eventually able to start one of the engines and avoid the crash.

“If they had run aground we would have faced a major disaster,” Hans Vik, the heads of the Joint Rescue Coordination Centre for southern Norway, told TV2.

Rescue services airlifted 479 passengers on to a helicopter before the weather improved and Viking Sky could be towed.

Twenty people required hospitalization as result of the order, the vessels operations said. The passengers were mainly elderly citizens from the US and Britain.

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Boeing 737 MAX’s disasters could impair global Artificial Intelligence development

March 23, 2019 by Forimmediaterelease

Two deadly crashes involving Boeing’s newest airplane in less than six months puts in jeopardy not only the credibility of the manufacturer, but also new technologies actively being pushed by the world’s top tech firms.

All Boeing 737 MAX 8 planes operated by global carriers were grounded earlier this month after an Ethiopian Airlines aircraft crashed shortly after take-off, taking a steep nosedive not far from Nairobi.

The fatal accident which claimed 157 lives followed a similar crash in Indonesia, which killed all 189 people on board in October.

The two crashes appear to have something in common. The crews of both aircraft reportedly struggled with the MAX 8 autopilot system which pointed the nose of the airplane down before the crash.

The implications of the deadly incidents are much bigger than aviation itself, according to Alessandro Bruno, an independent international affairs and aerospace industry analyst.

“I think this accident shows the limitations of artificial intelligence and it should convince Elon Musk and Tesla to slow down efforts to push down self-driving cars,” the expert said, highlighting that the latest crashes occurred due to software problems, not mechanical ones.

A recall of Boeing’s flagship planes, lawsuits from global air carriers and a fall in the manufacturer’s market value may undoubtedly result in the firm lagging behind Airbus, its key rival, according to international finance experts, who say that if this scandal is not ‘extinguished’ in time, it may trigger deep concerns over the entire sector of artificial intelligence and its credibility.

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Trump appoints former Delta Air Lines executive new FAA chief

March 20, 2019 by Forimmediaterelease

Former chief of flight operations for Delta Air Lines was appointed by President Trump to run the Federal Aviation Administration, currently under scrutiny for allowing the troubled Boeing 737 MAX 8 to carry passengers.

Steve Dickson, who spent 27 years with Delta before retiring in October as senior vice president of flight ops, is joining the agency in the midst of its most turbulent period in recent history, with Transportation Secretary Elaine Chao having requested an audit of its certification of the aircraft, two of which have been involved in horrific crashes over the past five months.

While Dickson’s name had reportedly been under consideration since November, Trump allowed the FAA to go without an official head for over a year following the end of Obama-era agency chief Michael Huerta’s term. Daniel Elwell, who led the FAA under George W. Bush, has been running the agency in an interim capacity without being confirmed by the Senate.

The man from Delta will be the first FAA head in three decades to have come directly to the job from a senior airline position – something of a pattern for Trump, who has recruited a number of cabinet members from the ranks of corporate America to staff the agencies tasked with regulating their former employers. Acting Defense Secretary Patrick Shanahan, who previously worked for Boeing, is just one such appointment.

The FAA is under fire for allowing Boeing to conduct crucial parts of its own safety testing and certification process. A group of current and former engineers from both the regulator and the aircraft manufacturer claims the FAA merely took Boeing’s word that their new plane was safe – an oversight that other countries then allegedly magnified by conducting only minimal testing of their own, assuming the US watchdog wouldn’t have certified an unsafe aircraft. Boeing is also accused of “cutting corners” to quickly certify the plane in order to compete with the new Airbus A320 Neo – between them, Airbus and Boeing comprise the lion’s share of all passenger airliners – and of failing to properly train pilots to work with the onboard systems.

Ethiopian Airlines Flight 302 crashed earlier this month shortly after taking off from Addis Ababa en route to Nairobi, killing all 157 people on board after diving unexpectedly into a field. It was the second Boeing 737 Max 8 to meet such a fate in under six months, and investigators have pointed to “clear similarities” between this crash and the Lion Air Flight 610 disaster in October, which killed 189 people.

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Russian carriers ‘suspend indefinitely’ all Boeing 737 MAX purchases

March 20, 2019 by Forimmediaterelease

Contracts for the purchase of troubled Boeing 737 MAX aircraft have been suspended indefinitely by a number of Russian airlines, according to Vladimir Afonsky, a member of the Russia’s State Duma (Parliament) Committee on Transport and Construction.

He told TASS, with a reference to Deputy Transport Minister Aleksandr Yurchik, that these were contracts for the supply of several dozen aircraft to UTair, Ural Airlines, Pobeda Airlines and S7.

The indefinite suspension will last “until the circumstances of this situation [the two recent crashes of the Boeing 737 MAX planes] were ascertained,” Afonsky said.

Ural Airlines had ordered 14 MAX aircraft from Boeing, with the first jet expected to arrive in October. Pobeda Airlines (part of the Aeroflot Group) was planning to buy 30 planes. It has not sealed a firm contract yet but had already made an advance payment for the aircraft.

Aeroflot CEO Vitaly Savelyev said earlier that the company could refuse operating twenty MAX planes ordered for Pobeda.

Earlier this month, Boeing 737 MAX planes were grounded worldwide after two similar crashes just months apart. Last October, a Lion Air jet crashed in Indonesia, killing all 189 people on board. On March 10, another crash killed 157 people in Ethiopia.

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