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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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Mr. C Coconut Grove: South Florida’s newest boutique hotel officially opens

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Mr. C Coconut Grove, the first Mr. C hotel to debut in Florida, has officially opened its doors to begin welcoming guests. Mr. C Coconut Grove is the third property operated by the Cipriani brothers, who currently operate a 138 key luxury property in Beverly Hills, California and a 66 key luxury property located in the lower Manhattan neighborhood of the Seaport District New York.

“We are excited to officially welcome guests to experience Mr. C Coconut Grove and Bellini in the heart of one of Miami’s most culturally-rich neighborhoods,” said Ignazio Cipriani, Founder/President of Mr. C Hotels. “Our partners, staff, and management are proud to contribute to the revitalization of the Coconut Grove community.”

Accommodations at the well-appointed hotel include 100 guestrooms and suites with unmatched views of Biscayne Bay and the Coconut Grove skyline from the furnished room terraces. From its interior, the hotel draws inspiration from Italy’s iconic coastal style and hints at the aesthetic elements of a classic yacht. Interior design includes high gloss timber paneling, leather-upholstered blue and caramel headboards, nautical style dressers, playful and comfortable sofas and armchairs in a range of soft and airy blue and white fabrics throughout the space. Acclaimed architecture and design firm, Arquitectonica, in conjunction with the Martin Brudnizki Design Studio, combined the stylish European glamour and nautical aesthetic Mr. C Hotels are best known for with the tropical surroundings of South Florida.

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Austrian Airlines launches new Montreal-Vienna route

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Austrian Airlines announced the launch of a year-round flight service to and from Montreal/Vienna beginning April 29th, 2019.

The long-haul flight will be operated by the airline’s Boeing 767 aircraft.

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United Airlines plans nonstop service between New York/Newark and Cape Town

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United Airlines today applied with the U.S. Department of Transportation for authority to begin new service between New York/Newark Liberty International Airport and Cape Town International Airport. United plans to operate nonstop three-times weekly flights to Cape Town starting in December 2019.

“We are always looking at ways to expand our industry-leading international route network to offer our customers more convenient options. We’re thrilled to announce the addition of Africa to our global route offering,” said Patrick Quayle, United’s vice president of International Network. “This new flight will provide customers with the only nonstop service between the United States and Cape Town.”

United’s nonstop service between New York/Newark and Cape Town will decrease the current travel time from New York to Cape Town by more than four hours and provide customers from more than 80 U.S. cities with easy one-stop access to Cape Town. If approved, United’s service between New York/Newark and Cape Town will be operated with Boeing 787-9 Dreamliner aircraft featuring 48 seats in United Polaris business class, 88 seats in United Economy Plus and 116 seats in United Economy.

Proposed Flight Schedule, Beginning December 15, 2019*

From To Depart Arrive Aircraft
New York/Newark Cape Town 8:30 p.m. 6:00 p.m. +1 Boeing 787-9
Cape Town New York/Newark 8:50 p.m. 5:45 a.m. +1 Boeing 787-9

*Subject to government approval

Cape Town is the oldest city in South Africa and the country’s center of trade and commerce. Located at the shore of Table Bay, the city is home to some of the most popular attractions in South Africa including Table Mountain, Kirstenbosch Botanical Gardens and the Victoria and Alfred Waterfront. Travelers to South Africa often begin their African journey in Cape Town before touring the Cape Winelands, viewing the African penguins at Boulder Beach or traveling beyond Cape Town to explore South Africa’s natural beauty including its many national parks, game reserves and beautiful coastlines and beaches of the KwaZulu-Natal and Western Cape provinces.

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Excellence Group Luxury Hotels & Resorts rebranded

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With a mission to exceed guests’ highest expectations in every aspect possible, Excellence Group Luxury Hotels and Resorts has become the Caribbean’s most trusted name in all inclusive luxury travel. The family-owned and -operated group, which owns and manages five-star, award-winning resorts in Mexico, the Dominican Republic, and Jamaica, will continue to deliver stunning properties and unmatched service as it enters its next chapter with The Excellence Collection.

The Excellence Collection will encompass the group’s three high end brands: the adults-only Excellence Resorts with all inclusive properties in Cancun, the Riviera Maya, Punta Cana, and Montego Bay; Beloved Hotels for boutique adults-only all inclusive escapes; and Finest Resorts offering modern all inclusive luxury for all ages.

With last year’s opening of Excellence Oyster Bay and plans for a Finest Punta Cana in 2020, the company has focused on new ways to meet the ever-changing needs of the market, and has created The Excellence Collection to do so. The Excellence Collection brings a new brand identity with modern, updated logos and dedicated hyperfocus on the unique offerings of each of group’s properties.

These new elements mark an important milestone for the hospitality group, which has been experiencing rapid growth in the last decade. With three key pillars of Bespoke Service, Extraordinary Moments, and Innovative Curation at the core of The Excellence Collection, the parent brand is a promise made to each and every Excellence Collection guest.

“The Excellence Collection is an evolution of Excellence Group Luxury Hotels & Resorts. Our three pillars have been thoughtfully defined, with the end goal to deliver an authentic experience that lasts well beyond the guests’ stay. We do so through a personal and curated approach to luxury,” said The Excellence Collection’s Vice President of Sales & Marketing, Mr. Domingo Aznar.

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Brexit uncertainty, but LHR is doing well

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Despite Brexit uncertainty, Heathrow remains a bright light for the UK, with the role we play in keeping people and products moving evident. Our new domestic connections will be pivotal in linking more regions and nations to global opportunities, benefiting all corners of this great country and we look forward to announcing many more of these as part of the expansion programme,”  Heathrow CEO John Holland-Kaye said

  • Heathrow’s passenger numbers continued to climb in March, with over 6.5 million passengers travelling through the UK’s only hub airport, ringing in the 29th consecutive month of record growth for the airport. Notable spikes in the previous month were St Patricks and Mother’s Day, attitudes towards travel remain strong despite ongoing uncertainty around Brexit’.
  • Africa performed especially well over the past month, increasing by 6.2% compared to the same time last year. Domestic connections also saw a slight uplift (+0.2%) with British Airways launching its 2nd service to Inverness and Flybe growing their loads by more than a fifth (23%) with an inaugural flight to Cornwall on March 31.
  • More than 149,000 metric tonnes of cargo travelled through the UK’s biggest port by value, further demonstrating the importance of Heathrow in a post Brexit world.
  • Both Latin America and Africa saw remarkable double digit growth with the former up 23% on 2018 due to additional services to Brazil and increased volumes to Mexico. Freight to and from Africa grew by 11%, thanks to Virgin’s growth on routes to the continent.
  • Two of Heathrow’s Terminals made it into the top five globally, with Terminal 5 taking top spot. In addition, Heathrow was voted amongst the world’s top 10 airports overall and won “Best airport in Western Europe” and “World’s Best Airport Shopping”.
  • In March, Heathrow launched the airport’s new Innovation Prize to fund ideas and solutions addressing aviation environmental impact. The prize is sponsored by Heathrow’s new Centre of Excellence for Sustainability, which connects experts and offers Heathrow as a living laboratory to test and develop ideas that encourage sustainable aviation.
  • The expansion project reached another significant milestone, as the names and locations of the 18 shortlisted sites in the running to become offsite construction centres for Britain’s new runway were revealed. Shortlisted sites will now pitch to airport bosses for their chance to become one of the final four construction centres, to be announced early next year.
  • Heathrow announced the launch of their 10th domestic route. The route is operated by Flybe and links the hub airport to Cornwall in Newquay for the first time since 1997.

Heathrow CEO John Holland-Kaye said:

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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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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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Celebrity Cruises orders fifth Edge-Class cruise ship

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Royal Caribbean Cruises Ltd. today announced that it has entered into an agreement with French shipbuilder Chantiers de l’Atlantique to order a fifth Edge-class ship for delivery in the fall of 2024.

“Edge class made an immediate hit with Celebrity Cruises guests and is a state-of-the-art example of technical excellence and elegant design,” said Richard D. Fain, Chairman and CEO, Royal Caribbean Cruises Ltd. “We can’t wait to build the next one.”

“Celebrity Edge has delighted our guests and affirmed Celebrity Cruises as the leading modern luxury brand. Chantiers de l’Atlantique has been a brilliant partner and we look forward to creating another amazing vessel with them,” said Lisa Lutoff-Perlo, President and CEO, Celebrity Cruises.

“We are really proud and happy to have built such an outstanding relationship with our customer, based on mutual trust and driven by the spirit of innovation,” said Laurent Castaing, General Manager, Chantiers de l’Atlantique. “After the four Millennium-class ships at the beginning of 2000’s and the four Edge-class ships, this is the ninth ship ordered by Celebrity Cruises at our shipyard and it will be the 24th vessel built by Chantiers de l’Atlantique and operated by RCL. This is a real testimony of the exceptional level of cooperation we reached together.”

Celebrity Edge was delivered in 2018. Three other Edge-class ships were ordered earlier and are scheduled for delivery in 2020, 2021 and 2022. This new order is contingent upon financing.

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Qatar Airways: Investment in Air Italy fully compliant with US-Qatar Open Skies Agreement

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Following recent false accusations relating to Qatar Airways’ shareholding in Air Italy, such baseless statements and consistent inaccuracies need addressing as a matter of urgency.

Qatar Airways holds a 49 percent stake in Air Italy’s parent company, AQA. This minority investment is at the same level that Delta holds in both Virgin Atlantic and Aeromexico, and that Etihad held in Alitalia.

Qatar Airways’ investment in Air Italy, and operations to the United States, are fully compliant with the U.S.-Qatar Open Skies Agreement, the January 2018 U.S.-Qatar Understandings, and a side letter that accompanied the discussions.

Unfounded claims that Qatar Airways’ investment in Air Italy violates the Understandings are entirely false.

As a factual matter, the investment preceded the January 2018 U.S.-Qatar Understandings.

· The investment was announced in a July 2016 press release and was approved in writing by the European Commission (DG Competition) in March 2017.

· The transaction was closed in September 2017.

· The discussions surrounding the Understandings took place in December 2017 and January 2018.

Qatar Airways’ investment in Air Italy was a matter of public knowledge (as were Qatar Airways’ investments in other airlines) at the time of the U.S.-Qatar discussions; airline investments were not raised as a point of concern during those talks. The Understandings do not mention or prohibit cross-border investments of any type.

Furthermore, Qatar Airways does not codeshare on any of Air Italy’s flights to the United States, and has no plans to do so. Qatar Airways is not operating any Fifth Freedom scheduled air services to the U.S.

The “Big 3” U.S. carriers have consistently demonstrated their hostility to new entrants into the U.S.-Europe market, and their attacks on Air Italy based on the identity of its minority shareholder are just another manifestation of this hostility. Air Italy, the carrier the “Big 3” cite as a major “threat” to their survival, has a fleet of just 15 aircraft and only serves one U.S. city – New York – with a daily service while other routes, Miami, Los Angeles and San Francisco are operated at a lower frequency.

The U.S.-Qatar Open Skies Agreement has brought enormous benefits to U.S. and Qatari consumers, businesses and communities. Qatar Airways’ services to the United States contribute to U.S. tourism and business. Qatar Airways is a long-term and loyal customer of Boeing, Gulfstream and General Electric, helping to secure tens of thousands of U.S. jobs through our continued investment in their products and is a valued partner to many other U.S. businesses.

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