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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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India: Jet Airways’ demise leads to spike in airfares, massive hotel cancellations

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The abrupt shutdown of Jet Airways operations has left Indian tourism industry a worried lot as it has led to an average 25 percent spike in airfares across the sectors leading to massive hotel cancellations, says industry experts.

Some key sectors like Mumbai-Hyderabad, Mumbai-Delhi and Delhi-Mumbai have seen the fares flying by 62 percent, 52 percent and 49 percent, while the Bengaluru-Delhi sector has had the lowest impact with a 10 percent surge shortly before and soon after the grounding of Jet.

Financially struggling for months, Jet Airways decided to call it quits from Wednesday night, leaving 22,000 jobs at stake and inconveniencing lakhs of passengers both domestic as well as international as Jet was the single largest airline out of and into the country.

“The impact of grounding of Jet Airways is not only restricted to the airlines sector as tourism has taken a severe beating due to the massive surge in airfares during the peak demand season. The impact is unlikely to fade away anytime soon and may continue into the rest of the year,” Travel Agents Association of India (TAAI) president Sunil Kumar said Friday.

He said, both the domestic as well as international travel and related sectors are affected as travelers are cancelling their hotel bookings as airfares have surged by over 25 percent on average.

Leading tour operator Cox & Kings’ Karan Anand said the shuttering of Jet has upset the travel plans of many who have booked on Jet.

“This is the peak travel season and the airfares for the next 10-12 days are up by at least 25 percent as the capacity has fallen massively dissuading last minute travelers,” he added.

However, online travel aggregator Easemyyrip.com co- founder Nishant Pitti tried to downplay the impact saying airfares normally fluctuate as the aviation industry is always unpredictable.

“It is true that passengers are in panic now but going forward there will not be much impact as other airlines like Spicejet and Indigo are adding more planes into their fleet which will help balance demand-supply gap,” he said.

Train booking and discovery platform Confirmtkt cofounder Sripad Vaidya said due to the flight charges going up, there is a huge surge in people opting for trains and buses.

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California-based Surf Air eyes profitability in 2019

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A turbulent year for Surf Air has finally come to an end. Exciting recent updates have already resulted in massive improvements to its scheduled service and membership growth.

A recent lawsuit against Encompass Aviation, its former flight operating partner, has been settled. Under the terms of the settlement, Surf Air has regained full access to its entire fleet of branded Pilatus PC-12s, an unfortunate consequence of negotiations that caused severe disruptions to the company.

“By doubling down on our most popular routes and eliminating non-core flying we have proven route profitability and that the fundamental business model works. Our plan for 2019 is to continue to invest further into these core markets and expand access to Surf Air through new, more flexible membership product offerings,” says Surf Air Chairman & CEO Sudhin Shahani.

Recent Club Updates:

A Robust Core Schedule

Surf Air has rebuilt a core schedule and added more flights across its most important routes: Los Angeles, San Francisco, Santa Barbara, and Lake Tahoe. The company will continue to add flights as it continues to acquire more members.

The company will also add back leisure weekend destinations as it makes sense (Las Vegas, Napa, Monterey, and Palm Springs).

Best-in-Class Reliability

With the help of Advanced Air, the company’s current third-party flight operator and long-time partner, they’ve restored operational reliability to its former best-in-industry levels of over 90% completion factor.

“Advanced Air has been a critical partner during this transitional period. With their proven professional and safety record, they’re the perfect, value-aligned partner to continue to scale our business,” says Sudhin Shahani.

Flexible, Per-Seat Membership

Perhaps Surf Air’s most promising opportunities for scaling membership growth is the new Express membership, allowing flyers to buy and fly on a per-seat basis. Meaning, for the first time, less frequent flyers can enjoy the time-savings benefits of zero hassle air travel.

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Rolls-Royce Tay 611-8 engine achieves 10 million flying hours

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The Rolls-Royce Tay 611-8 engine, which entered service in 1987, recently achieved another incredible milestone by reaching 10 million flying hours in nearly 5 million flights. The engine powers a range of Gulfstream’s highly successful large-cabin business aircraft, such as the Gulfstream GIV, GIV-SP, G300 and G400, and has established a reputation for outstanding dependability, efficiency and low noise generation.

The performance of the Tay 611-8 enabled the Gulfstream GIV to revolutionise the business aviation market with its high cruising speed and the intercontinental range of about 4,300 nautical miles. Over the past three decades, the Tay 611-8 has achieved numerous records for speed and range. These achievements have been perpetuated by its successor, the Tay 611-8C, powering the Gulfstream G350 and G450. There are over 1,700 Tay 611-8 and -8C engines in service today, with many of these supported by Rolls-Royce’s market leading CorporateCare®.

The background to the first Tay order contract is part of aviation history. In December 1982 the basic details – engine price, quantity, payment terms – were written on a napkin in less than 10 minutes by Sir Ralph Robins, who at the time was the company’s Managing Director, and Allen Paulson, Gulfstream’s founder and then Chairman and CEO. The deal was formally settled in March 1983.

Dirk Geisinger, Director Business Aviation, Rolls-Royce, said: “Reaching 10 million flying hours is an impressive milestone and we are very proud of this achievement. With its legendary reliability the Tay 611-8 became the benchmark for ultra-reliable long distance business aircraft and perfectly illustrates why Rolls-Royce is the leading engine manufacturer in Business Aviation.

“The Tay family with its proven performance has been very successful for us and has propelled our market leadership in this sector. Combining this engine with our latest aftermarket programme CorporateCare Enhanced raises the bar for the whole industry by introducing uncapped troubleshooting, coverage for mobile repair team travel costs and nacelle coverage on later engine models.”

He adds: “CorporateCare Enhanced provides our customers with a global support infrastructure which includes Engine Health Monitoring, a worldwide network of Authorised Service Centres and globally distributed spare parts and engines, all managed by our dedicated 24/7 Business Aircraft Availability Centre. Our customers benefit directly from this investment in proactive care, an in most cases are prevented from missing a planned trip.”

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India’s Jet Airways halts all international and domestic operations

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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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US airlines wrongfully reject over 25% of their passengers’ compensation claims

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Consumer rights advocacy group released the results of a new study showing that United States airlines wrongfully reject more than 25% of compensation claims, indicating that more than one in five travelers are being denied up to $700 they are owed by Delta Air Lines, United Airlines, and American Airlines following flight disruptions.

Each year, more and more travelers flying out of the U.S. are eligible to claim compensation under European law EC 261 which covers travelers on European flights. AirHelp found more than 25% of valid claims filed against U.S. airlines for disrupted flights in 2016, 2017 and 2018 were turned away on wrongful grounds by airlines trying to avoid their obligation to travelers.

The travel experience is continuously getting worse due to overtourism. In the U.S., 407,000 travelers are eligible to claim compensation under EC 261 following flight delays and cancellations experienced last year, up from 370,000 the previous year. During the first three months of 2019, more than 75,000 passengers experienced disruptions due to the fault of the airlines that have made them eligible for compensation.

This trend is a small part of the larger issue of airlines mistreating passengers. A survey of travelers found 75% of U.S. travelers feel uninformed about their air passenger rights, and less than 25% of travelers who were on a disrupted flight actually file a claim, despite airlines being required by law to inform passengers of their rights.

How the U.S. Airlines Stack Up

Of the U.S. airlines, Delta Air Lines wrongfully rejects the most claims at a rate of one in three. United Airlines wrongfully rejects nearly one in four claims, and American Airlines rejects one in every five. According to an annual ranking of global airlines and airports, U.S. airlines’ unsurprisingly perform poorly, with each major carrier earning less than seven out of 10 for quality of service.

The most popular U.S. airlines ranked on wrongfully rejected claims rate

United States ranking Global ranking for wrongfully rejected claims rate

Airline Wrongfully rejected claim rate

1 32 Delta Air Lines 32%
2 42 United Airlines 23%
3 44 American Airlines 22%

Data from January 1, 2016 to December 31, 2018

“The bleak picture in the U.S. is just the tip of the iceberg. The volume of legitimate passenger claims being wrongfully rejected by airlines is appalling. Flight delays and cancellations are increasingly heaping chaos on passengers, and travelers are forced to fight airlines for compensation they’re rightfully owed,” says Henrik Zillmer, CEO of AirHelp. “It’s all very well for airlines to say they will compensate passengers who make their claim directly. The reality is that thousands of passengers are continuing to face an impossible struggle to claim the money they’re entitled to. If they are embroiled in a legal battle with an airline, passengers may face costs to hire a lawyer to push through their claim, which can make fighting for compensation virtually impossible.”

U.S. Passenger Rights

U.S. passengers are protected under EC 261 for flights to the EU on an EU airline, and any flight departing from the EU. Cancelled flights, delays of more than three hours, and incidents of denied boarding are covered under EC 261, as long as the disruption was not caused by extraordinary circumstances such as weather, sabotage or political unrest. Eligible passengers may be entitled to financial compensation of up to $700 per person, and can file claims up to three years after the incident occurs.

Travelers have fewer protections on domestic U.S. flights, but can claim up to $1,350 in compensation for denied boarding due to overbooking, depending on the value of the ticket fare and ultimate delay in arrival to their final destination

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Turkish Airlines adds Marrakech to flight schedule

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Starting on April 15, Istanbul – Marrakech – Istanbul direct flights will be commenced five days of a week as Turkish Airlines reinforces its title of flying to more international destinations than any other airline.

Successfully completing its “Great Move” process and transferring all of its passenger operations to its new hub, Istanbul Airport, Turkish Airlines now adds Marrakech, tourist city of Morocco, to its flight network. As the national flag carrier’s first inaugural flight from its new home, Marrakech became Turkish Airlines’ the second destination in Morocco while becoming its 308th destination globally.

The inaugural flight from Istanbul Airport, landed in Marrakech Menara Airport, was welcomed by the customary water cannon salute in a formal ceremony, to which attended by the executives both from the global carrier and Marrakech Menara Airport, and press members as well.

Commenting on this inaugural flight, Turkish Airlines Chief Marketing Officer (CMO), Ahmet Olmuştur stated that; “With Istanbul Airport, a new era has begun in the global aviation. Our new operation center offers an important opportunity for us to develop our globally unparalleled flight network performance even further. Thus, we are working on new strategies to capitalize on this opportunity. Marrakech will always hold a special place for us as it is the first destination we added from our new home. We are happy to carry our passengers to this crimson city with our privileged travel experience.”

Known as the “Crimson City” due to the color of its soil, Marrakech offers tourists and travelers the opportunity to experience the entire allure of North Africa in a single location. Bringing historical buildings, famous mosques and colorful flower gardens together at the foothills of Atlas Mountains, Marrakech is well on its way to become one of the favorite tourism centers of the world. As the first capital of Morocco, whose name means “Land of God” in the Berber language, Marrakech’s streets are teeming with the historical heritage of various cultures.

Passengers, travelling to Marrakech with the privileged travel experience of Turkish Airlines, will be able to visit various significant locations for cultural tourism while experiencing different activities such as nature and wildlife tours.

Istanbul – Marrakech – Istanbul scheduled flight times beginning from 15th April 2019;

Flight No. Days Departure Arrival
TK 619 Monday, Wednesday, Friday, Saturday, Sunday IST 11:30 RAK 14:30
TK 620 Monday, Wednesday, Friday, Saturday, Sunday RAK 15:25 IST 22:05

All times are in LMT.

To view the flight schedules, please visit turkishairlines.com or contact the call center at +90 212 444 0849 or visit any TK sales office.

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Canadian tourist falls to his death from Chiang Mai zipline after safety locks brake

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A visitor from Canada fell to his death from a zipline in the northern province of Chiang Mai on Saturday.

Thai rescue officials said the 25-year-old tourist died while riding a zipline in a forest at the popular tourist destination Mae Kam Pong. His safety locks broke, causing him to plunge more than 50 meters into a creek. He died at the scene.

Zipline operator Flight of the Gibbon said it would take full responsibility and compensate the victim’s family.

Workers at the zipline service said the safety locks broke shortly after the tourist, who reportedly weighed about 400 pounds (180 kilograms), took off from the starting point. One Hawaiian zipline operator puts its maximum weight limit at 260 pounds, or around 118 kilograms.

The operator’s website states that people weighing more than 275 pounds (125 kilograms) are not allowed to ride. It is not immediately clear why the tourist was allowed to do so.

Maj. Gen. Pichate Jiranantasin, provincial police chief, said the operator has been charged with fatal negligence for allowing such a heavy person on the ride.

Police suspect that the safety equipment could not hold his weight, adding that they found only three cables installed to hold customers, while there would normally be at least eight lines of cables to ensure safety.

Since 2016, Chiang Mai officials promised to improve safety standards of the many adventure tourism sites in the province following a string of serious or fatal accidents – including accidents at this very zipline operator.

Flight of the Gibbon was ordered a temporary shut down after three Israeli tourists were injured after colliding into one another on the zipline and falling to the ground.

The same company had also been investigated in 2017 for having some of its properties built on protected forest land.

Chiang Mai’s zipline fatalities last happened in 2015, when two Chinese tourists died after falling from two separate zipline attractions, operated by Skyline Adventure and Flying Squirrels. Another Chinese tourist was injured while riding the Flying Squirrels’ zipline in 2016.

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Vietjet launches new service to Indonesia with Ho Chi Minh City-Bali route

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Vietjet today opens ticket sales for its new international route connecting the biggest city of Vietnam, Ho Chi Minh City with Bali (Indonesia). Vietjet is the first and only airline to operate this route, which will better link the two tourist-attraction cities to meet the increasing travel demands of local people and tourists as well as boosting the regional trade promotion and integration. Hongkognese will be more convenient to travel these two cities.

The Ho Chi Minh City– Bali route will operate five return flights per week, on every Monday, Wednesday, Thursday, Friday, Sunday starting from May 29, 2019. Flying time is around 4 hours per leg. The flight departs from Ho Chi Minh City at 08:05 and arrives in Bali at 13:05. The return flight takes off from Bali at 14:05 and lands in Ho Chi Minh City at 17:05 (All in local times).

Vietjet Vice President Nguyen Thanh Son said: “Vietjet has the advantages of an expanding flight network and comfortable, friendly aviation services; therefore, I believe that the new route will not only create opportunities for people to travel by safe, civilized and modern air transport, but also connect two cities as known as two economic, cultural centers of Vietnam and Indonesia. The route will contribute to promoting tourism and economic integration in the region as well as introduce the images of Vietnam to the world.”

Bali – the popular tourist island of Indonesia and Asia is often called among travelholics as ––“Island of the Gods”, “Tropical Paradise” or “Dawn of the World”. Voted as the best tourist island in the world, Bali is a wonderful blend between the pristine, beautiful landscape with the local cultural, artistic and religious quintessence. Besides visiting Ubud Palace, discovering the famous town Bedugul with large Bratan lake, tourists can go surfing, ‘snorkeling’ diving or visiting endless terraced fields.

Vietnam, the country of thousand years of culture was always a favorite destination of many international tourists. If Hanoi capital is a representative of ancient culture, bold identity; Hue ancient capital is dreaming or Da Nang, Quang Binh are impressive wonders, Ho Chi Minh City is Vietnam’s largest economic, financial central, vibrant and modern travel destination. The culture exchange trend and retaining characteristics make image and beauty of one of the most dynamic cities of the S-shaped country.

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Jordan sets itself up for European MICE audience

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Jordan, a country which is sheltered from the troubles of the region, is safe to travel in and around, independently or in a group. The country is presenting itself to the European MICE audience with fully-detailed proposals as well as a complete specializing catalogue thanks to the cooperation of The Platinum Services, a Rome-based event agency and DMC specializing in first class events in Italy, Europe and other selected areas, and Guarantee Travel Group, one of the biggest DMCs and event and travel agencies of the Country, benefitting from personal contacts with Jordan Minister of Tourism and Antiquities Majd Mohammad Shweikeh.

“Jordan’s MICE industry has come of age,” stated Regional Director Mr. Rami Qutishat. “It understands the particular demands of the meetings and incentive market and strives to exceed expectations. It has harnessed the ingredients needed to provide groups with a successful event that touches the hearts of most discerning delegates and resides in their memories». For nearly half a century, Late King Hussein was viewed as a respected world leader and a symbol of peace and reconciliation. Today, his son King Abdullah II echoes the same voice of moderation – not by chance, he’s been recently presented the Peace Lamp in Assisi, Italy.”

Jordan is located at the crossroads of three continents, making it an ideal meeting place for international events. Flying time from most European, African and Asian cities is around four hours, and there is easy and direct access from the USA and Canada. GMT +2 hours; US Eastern Standard Time +7 hours.

Aqaba’s King Hussein International Airport (KHIA) is a gateway to the Red Sea and is becoming an important regional hub for business and leisure travelers. It is the only airport in Jordan to operate an Open Skies policy.

The national carrier, Royal Jordanian Airlines, flies to 54 destinations and is a member of One World Alliance with code sharing alliances with many airlines. The country boasts a fine array of international hotels, with new investments constantly adding a number of exciting developments to the portfolio. The country is now embracing the concept of eco resorts and is increasingly supporting green initiatives.

Besides the wealth of meeting space available in all the major hotels, the opening of the King Hussein Bin Talal Convention Center in 2006 on the shore of the Dead Sea signaled Jordan’s commitment to this sector.

Jordan touches many senses – from spicy aromas and culinary pleasures to an invigorating mud wrap, first glimpse of Petra’s Treasury and the sound of desert silence. It is one of nature’s most unusual adventure playgrounds, containing some of the world’s best preserved Nabataean and Roman cities, as well as the Dead Sea, the lowest point in the world; and for an even greater adrenalin rush, it unveils the crags that tower over Wadi Rum or the waterfalls in Wadi Mujib.

“Jordan is a country with rich cultural heritage,” stated Loredana Chiappini, owner of The Platinum Services. MICE events are set against a spectacular backdrop of mountains, deserts and seas that have provided the stage for many of history’s most momentous dramas. When you combine world-class meeting facilities with an inspiring range of incentive activities in a dramatic setting, you will have the ingredients for a very special event. With easy access, value for money and highly experienced DMCs, success is assured.”

Click on the website for more information.

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