Boeing

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Grounded Boeing 737 Max 8 passenger plane of the Norwegian low-cost airline Norwegian is seen parked on the tarmac at Helsinki Airport in Vantaa
Grounded Boeing 737 Max 8 passenger plane of the Norwegian low-cost airline Norwegian is seen parked on the tarmac at Helsinki Airport in Vantaa, Finland March 13, 2019. Lehtikuva/Heikki Saukkomaa via REUTERS

April 3, 2019

OSLO (Reuters) – Norwegian Air, a major client of Boeing, has had good meetings with the U.S. planemaker regarding the grounding of the MAX planes, the chief executive of the budget airline said on Wednesday.

“We have had some good meetings with Boeing today discussing the grounding of the MAX and how we can maneuver (sic) through this difficult situation,” CEO Bjoern Kjos said in a tweet.

(Reporting by Gwladys Fouche, editing by Terje Solsvik)

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FILE PHOTO: People walk at the scene of the Flight ET 302 plane crash, near the town of Bishoftu
FILE PHOTO: A passenger safety instruction card is seen at the scene of the Ethiopian Airlines Flight ET 302 plane crash, near the town of Bishoftu, southeast of Addis Ababa, Ethiopia March 10, 2019. REUTERS/Tiksa Negeri/File Photo

April 3, 2019

(Reuters) – The pilots of an Ethiopian Airlines 737 MAX jet that crashed last month had initially followed Boeing Co’s <BA.N> emergency procedures but they still failed to regain control of the plane, the Wall Street Journal reported on Wednesday.

The crash killed all 157 people on board and led to a global grounding of 737 MAX jets.

Boeing had issued guidelines to pilots about shutting off an automated anti-stall system in the wake of a deadly crash in Indonesia less than five months earlier. The Wall Street Journal report cited unidentified people briefed on the matter.

(Reporting by Jamie Freed; Editing by Paul Tait)

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FILE PHOTO: An aircraft of Gol Linhas Aereas Inteligentes SA departs from Congonhas airport in Sao Paulo
FILE PHOTO: An aircraft of Gol Linhas Aereas Inteligentes SA departs from Congonhas airport in Sao Paulo, Brazil September 11, 2017. REUTERS/Paulo Whitaker

April 2, 2019

SAO PAULO (Reuters) – Brazil’s largest airline, Gol Linhas Aereas Inteligentes, will not cancel its orders of Boeing Co’s 737 MAX plane, the model which was involved in two fatal crashes, its chief executive said on Tuesday, according to newspaper Valor Economico.

“We will not cancel our orders,” said Paulo Kakinoff, Gol’s CEO. “The 737 MAX is probably the best airplane ever made.”

(Reporting by Marcelo Rochabrun; Editing by Lisa Shumaker)

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FILE PHOTO: Senator Roger Wicker (R-MS) walks in the U.S. Capitol in Washington, DC
FILE PHOTO: Senator Roger Wicker (R-MS) walks in the U.S. Capitol in Washington, DC, U.S., August 22, 2018. REUTERS/Joshua Roberts

April 2, 2019

WASHINGTON (Reuters) – Whistleblowers claim U.S. aviation safety inspectors, including some who worked on the now-grounded Boeing 737 MAX, did not receive proper training and valid certifications, the chairman of the Senate Commerce Committee said on Tuesday.

Senator Roger Wicker, a Republican, said the committee was reviewing similar claims from multiple whistleblowers, and asked the Federal Aviation Administration to answer detailed questions.

Wicker said the FAA may have been notified about these deficiencies as early as in August 2018, citing information from the whistleblowers and documents.

The FAA did not immediately comment. 

(Reporting by David Shepardson; Editing by Bernadette Baum)

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FILE PHOTO: Shipping containers are pictured stacked on a ship docked at Yusen Terminals at the Port of Los Angeles
FILE PHOTO: Shipping containers are pictured stacked on a ship docked at Yusen Terminals (YTI) on Terminal Island at the Port of Los Angeles in Los Angeles, California, U.S., January 30, 2019. REUTERS/Mike Blake/File Photo

April 2, 2019

By Lucia Mutikani

WASHINGTON (Reuters) – New orders for key U.S.-made capital goods slipped in February and shipments were unchanged, but data for January was revised slightly higher, which could support views that the manufacturing sector was stabilizing.

The Commerce Department report on Tuesday came on the heels of a survey showing a rebound in a measure of factory activity in March from a more than two-year low. Manufacturing has been hurt by slowing global growth, a trade war between the United States and China, as well as the dollar’s strength last year.

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, fell 0.1 percent, pulled down by declining demand for machinery and computers and electronic products.

Data for January was revised slightly up to show these so-called core capital goods orders increasing 0.9 percent instead of rising 0.8 percent as previously reported.

Economists polled by Reuters had forecast core capital goods orders unchanged in February. Core capital goods orders increased 2.6 percent on a year-on-year basis.

Shipments of core capital goods were unchanged in February after an upwardly revised 1.0 percent rise in the prior month. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement.

They were previously reported to have gained 0.8 percent in January. The February report was delayed by a 35-day partial shutdown of the federal government that ended on Jan. 25. The March report will be published on April 25 as scheduled.

U.S. financial markets were little moved by the data. The Institute for Supply Management said on Monday that its index of national factory activity rose to a reading of 55.3 in March from 54.2 in February, which had marked the lowest level since November 2016. The ISM reported strong order growth in March.

The strong ISM survey, together with a mixed February retail sales report, solid construction spending and January business inventory data, tempered expectations of a sharp slowdown in economic growth in the first quarter.

Growth estimates for the first-quarter range from as low as a 1.2 percent annualized rate to as high as a 2.1 percent pace. The economy grew at a 2.2 percent pace in the fourth quarter, with growth in business spending on equipment accelerating.

The economy is losing momentum, largely as the stimulus from a $1.5 trillion tax cut fades.

In February, orders for machinery dropped 0.3 percent after rising 2.0 percent in January. Energy firms have been reducing the oil rigs operating, despite a rebound in oil prices, to focus on growing earnings.

Orders for computers and electronic products fell 0.3 percent. Orders for electrical equipment, appliances and components rose 1.0 percent in February after increasing 1.3 percent in the prior month

There were also increases in orders for primary metals and for fabricated metal products in February.

Overall orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, tumbled 1.6 percent in February. That reflected a 4.8 percent drop in demand for transportation equipment. Durable goods orders gained 0.1 percent in January.

Orders for motor vehicles and parts dipped 0.1 percent in February. Orders for non-defense aircraft plunged 31.1 percent after rising 9.2 percent in January. Boeing reported on its website that it had received only five aircraft orders in February compared to 46 in January.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

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FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse
FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse, France, March 20, 2019. REUTERS/Regis Duvignau/File Photo

April 2, 2019

PARIS (Reuters) – A landmark order from China for 300 Airbus jets signed during a state visit last week was bolstered by repeat announcements of dozens of existing deals and advance approval for deals that are not yet completed, two people familiar with the matter said.

Echoing an umbrella order for 300 Boeing jets awarded during a visit to Beijing by U.S. President Donald Trump in 2017, the headline figure for the new “framework order” for European jets was partly driven by political considerations, the people said.

The Airbus deal would have been worth some $35 billion at list prices but the amount of new business is lower, they added. Duplicate announcements included a deal for 10 A350 aircraft to an unnamed buyer, which represents a repeat announcement of an order for 10 jets by Sichuan Airlines at an air show last year.

The disclosure takes some of the shine off an announcement seen as the economic highlight of a trip to Europe by Chinese President Xi Jinping, but does mark a return to the aircraft market by China’s state buying agency after a pause of over a year during global trade tensions.

Airbus declined to comment on detailed orders but left open the possibility that the large deal contained gaps.

The agreement “creates the approval framework for aircraft ordered by Chinese airlines, be it existing orders or future orders,” a spokesman said in response to a Reuters query.

(Reporting by Tim Hepher; Editing by Bate Felix/Sudip Kar-Gupta)

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FILE PHOTO: An Air Canada Boeing 737 MAX 8 from San Francisco approaches for landing at Toronto Pearson International Airport over a parked Air Canada Boeing 737 MAX 8 aircraft in Toronto, Ontario, Canada
FILE PHOTO: An Air Canada Boeing 737 MAX 8 from San Francisco approaches for landing at Toronto Pearson International Airport over a parked Air Canada Boeing 737 MAX 8 aircraft in Toronto, Ontario, Canada, March 13, 2019. REUTERS/Chris Helgren/File Photo

April 2, 2019

(Reuters) – Air Canada said on Tuesday it has removed Boeing Co’s 737 MAX planes from flight schedules until July 1, citing uncertainty about when the aircraft would be allowed to return to service.

The carrier said due to Transport Canada’s continued closure of Canadian airspace to the aircraft, it has further adjusted its schedule to May 31.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli)

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China Development Forum in Beijing
Daimler CEO Dieter Zetsche speaks during the China Development Forum in Beijing, China March 24, 2019. REUTERS/Thomas Peter/Pool

April 2, 2019

FRANKFURT (Reuters) – Daimler Chief Executive Dieter Zetsche on Tuesday said the debate surrounding the safety of Boeing’s aircraft shows how hard it can be to win public acceptance for autonomous cars technology.

“What is very important is the psychological dimension. If you look at what is happening with Boeing then you can imagine what happens when such a system has an incident,” Zetsche said, commenting about the car industry’s efforts to develop autonomous cars.

In the wake of two plane crashes, regulators across the world have grounded the 737 MAX aircraft pending an investigation into whether Boeing’s software-based automated flight control system is safe.

The auto industry should introduce autonomous systems in stages, as a way to build acceptance for complex but potentially safety-enhancing automotive technology, Zetsche said.

“Even if autonomous cars are 10 times safer than those driven by humans, it takes one spectacular incident to make it much harder to win widespread acceptance,” Zetsche said.

Separately Zetsche said Daimler was considering introducing fuel cells to power electric buses and trucks.

(Reporting by Edward Taylor; Editing by Michelle Martin)

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Singapore Airlines' first Boeing 787-10 Dreamliner prepares to land at Changi Airport
Singapore Airlines’ first Boeing 787-10 Dreamliner prepares to land at Singapore’s Changi Airport March 28, 2018. REUTERS/Edgar Su

April 2, 2019

SINGAPORE (Reuters) – Singapore Airlines Ltd said on Tuesday it had grounded two Boeing Co 787-10 jets fitted with Rolls-Royce Holdings PLC Trent 1000 TEN engines after checks of its fleet found premature blade deterioration.

The jets have been removed from service pending engine replacement, the airline said in a statement.

The Trent 1000 TEN is the latest version of an engine that has had a problematic entry into service. As of late February, Rolls-Royce said 35 787s were grounded globally due to engine blades corroding or cracking prematurely. The manufacturer said it was aiming to reduce the number to 10 by the end of the year.

In February, the company raised a Trent 1000 accounting charge to 790 million pounds ($1.03 billion) from 554 million pounds at the half year, contributing to a full-year operating loss of 1.16 billion pounds. It also allocated another 100 million pounds in cash to the problem.

Rolls-Royce said on Tuesday that since the entry into service of the Trent 1000 TEN, it had communicated to operators that the high-pressure turbine blades in the engine would have a limited life.

“Working with operators, we have been sampling a small population of the Trent 1000 TEN fleet that has flown in more arduous conditions,” the manufacturer said in a statement. “This work has shown that a small number of these engines need to have their blades replaced earlier than scheduled.”

Rolls-Royce said its engineers were already developing and testing an enhanced version of the turbine blade.

“We will now work closely with any impacted customers to deliver an accelerated program to implement the enhanced blade and to ensure that we can deliver on our Trent 1000 TEN future commitments,” the company said. “We regret any disruption this causes to airline operations.”

(Reporting by Jamie Freed; Editing by Christopher Cushing)

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A Ryanair Boeing 737-8AS plane takes off at the Riga International Airport
A Ryanair Boeing 737-8AS plane takes off at the Riga International Airport, Latvia March 15, 2019. REUTERS/Ints Kalnins

April 2, 2019

(Reuters) – Irish-based carrier Ryanair said on Tuesday its pilots based in Portugal have voted for a labor agreement for the next four years, taking another step to head off any risk of another round of damaging strikes ahead of its peak summer season.

The agreement governing pay and conditions was negotiated between Ryanair and the Portuguese pilot union SPAC to cover all of the airline’s directly employed pilots in Portugal, the carrier said.

Ryanair has been struggling with labor relations since it bowed to pressure to recognize unions for the first time almost a year ago.

The airline had said in October that it had reached an agreement with its Portuguese pilots on seniority and home base issues, looking at the time to end a damaging series of strikes that had hurt its business.

It had said that the Portuguese deal – covering issues such as leave allocation and promotion – would allow talks with Portugal’s SPAC union on a full collective labor agreement.

Separately, Ryanair said on Tuesday that passenger traffic grew 9 percent to 10.9 million in March.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Arun Koyyur)

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