Boeing
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FILE PHOTO: Ed Bastian, CEO of Delta Air Lines, speaks during a keynote address at the 2019 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S. January 8, 2019. REUTERS/Steve Marcus/File Photo
April 9, 2019
ATLANTA (Reuters) – Delta Air Lines Inc Chief Executive Officer Ed Bastian said on Tuesday he was confident U.S. planemaker Boeing Co will solve issues related to its 737 MAX in the wake of two deadly crashes involving that airplane type.
Bastian, speaking at an aviation conference in Atlanta, also said Delta was “very interested” in Boeing’s proposed new mid-market airplane, though he said the world’s largest planemaker has put its focus into dealing with the crisis surrounding the MAX first.
(Reporting by Eric M. Johnson; Editing by Chizu Nomiyama)
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FILE PHOTO: People walk past an American Airlines logo on a wall at John F. Kennedy (JFK) airport in in New York November 27, 2013. REUTERS/Carlo Allegri/File Photo
April 9, 2019
(Reuters) – American Airlines Co Group Inc said on Tuesday its first-quarter revenue per available seat mile would be below its previous forecast due to the groundings of Boeing 737 MAX planes and the U.S. government shutdown.
The airline said it now expects https://www.sec.gov/Archives/edgar/data/4515/000000620119000014/a8kinvestorupdateex991q1-19.htm the closely followed measure of airline performance to be flat to up 1 percent compared with the prior forecast of flat to 2 percent growth.
(Reporting by Rachit Vats in Bengaluru; Editing by Arun Koyyur)
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FILE PHOTO: U.S. President Donald Trump speaks during a meeting of the White House Opportunity and Revitalization Council in the Cabinet room at the White House in Washington, U.S., April 4, 2019. REUTERS/Kevin Lamarque/File Photo
April 9, 2019
WASHINGTON (Reuters) – U.S. President Donald Trump said on Tuesday the United States would impose tariffs on $11 billion of products from the European Union, a day after U.S. trade officials proposed a list of EU products to target as part of an ongoing aircraft dispute.
“The World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of EU products! The EU has taken advantage of the U.S. on trade for many years. It will soon stop!” Trump said in a post on Twitter.
The two sides have been locked in a years-long global trade dispute over mutual claims of illegal aid to plane giants, Netherlands-based Airbus and U.S.-based Boeing, to gain advantage in the world jet business.
The U.S. Trade Representative on Monday announced the planned products targeted in retaliation for European aircraft subsidies, with a final list expected this summer.
Meanwhile, the EU has started preparing to retaliate over Boeing subsidies, an EU official said on Tuesday.
The moves comes as the record subsidy dispute, which has been grinding its way through the WTO for almost 15 years, reaches a climax, with both sides in arbitration to decide the size of any countermeasures.
(Reporting by Susan Heavey; Editing by Mohammad Zargham and Bernadette Baum)
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FILE PHOTO: The Boeing logo is pictured at the Latin American Business Aviation Conference & Exhibition fair (LABACE) at Congonhas Airport in Sao Paulo, Brazil August 14, 2018. REUTERS/Paulo Whitaker/File Photo
April 9, 2019
By Philip Blenkinsop and Tim Hepher
BRUSSELS/PARIS (Reuters) – The European Union has begun preparations to retaliate over Boeing subsidies, an EU official said on Tuesday, a day after Washington listed EU products it plans to hit with tariffs in their aircraft dispute.
The U.S. Trade Representative https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/april/ustr-proposes-products-tariff on Monday proposed a range of EU products ranging from large commercial aircraft and parts to dairy products and wine to target as retaliation for subsidies given to Airbus.
A European Commission source said on Tuesday the level of proposed U.S. countermeasures was “greatly exaggerated”, adding the amount of retaliation could only be determined by a World Trade Organization arbitrator.
“In the parallel Boeing dispute, the determination of EU retaliation rights is also coming closer and the EU will request the WTO-appointed arbitrator to determine the EU’s retaliation rights,” the Commision source said, adding the Commission was preparing so that it could take action after the arbitrator’s decision.
Airbus said it saw no legal basis for the U.S. move and warned of deepening transatlantic trade tensions.
The European Union is already facing U.S. tariffs on its steel and aluminum exports and U.S. President Donald Trump has repeatedly threatened to hit EU cars with punitive duties.
French Finance Minister Bruno Le Maire told a conference in Paris that the two sides needed to reach a friendly agreement.
“When I see the situation global growth is in, I don’t think we can afford to have a trade conflict even if only on the specific issues of the aircraft industry in the United States and Europe,” he said.
The two sides are closing in on the climax of a record subsidy dispute that has been grinding its way through the WTO for almost 15 years.
Both sides have won partial victories in claiming Airbus and Boeing received unlawful subsidies but disagree on the amount involved and whether each has complied with earlier WTO rulings.
MORE TIT-FOR-TAT?
The U.S. tariffs proposal put pressure on shares in European makers of aircraft and aerospace suppliers, wine, cheese and luxury goods.
At 0950 GMT, Airbus shares were down 1.6 percent. Airbus suppliers such as Safran and Leonardo lost between 1.0 percent and 1.2 percent. MTU Aero Engines was 2.5 percent weaker and Rolls-Royce down 1.3 percent.
“Get ready for more tit-for-tat scrapping to follow,” said John Woolfitt of London brokerage Atlantic Markets.
The WTO ruled last year that the European Union had failed to remove illegal subsidies for two aeroplane programs, the A350 and the A380.
The two sides are now in arbitration to decide the size of any countermeasures.
Airbus said it had taken measures to comply with the “relatively minor” elements outstanding regarding subsidies it had received.
German engineering lobby group the VDMA, which represents major exporters, said the European Union should swiftly move to negotiate a free trade agreement with the United States.
“Punitive tariffs are no solution to the problem; they only lead to a spiraling isolation,” Ulrich Ackermann, the VDMA’s head of foreign trade, said in a statement.
Germany is particularly apprehensive of possible U.S. tariffs on car imports. The United States is a major market for Volkswagen, Mercedes maker Daimler and BMW.
Moody’s said on Tuesday potential U.S. tariffs on imported autos and parts represented a significant risk to global growth and would hinder economic momentum in Germany, Japan and Korea.
(Reporting by Philip Blenkinsop; additional reporting by Tim Hepher, Richard Lough and Leigh Thomas in Paris, Helen Reid, Thyagaraju Adinarayan and Georgina Prodhan in London; Editing by Keith Weir)
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Part of the unpainted fuselage of a 737 Max aircraft at the Boeing factory in Renton, Washington, U.S., March 27, 2019. REUTERS/Lindsey Wasson
April 9, 2019
BEIJING (Reuters) – China has decided to accept an invitation to join the U.S. Federal Aviation Administration’s (FAA) review panel on the Boeing 737 MAX, an official of the Asian nation’s aviation regulator said on Tuesday.
The Civil Aviation Administration of China has decided to send experts to be part of the panel, the official, in the regulator’s media relations department, told Reuters.
Last week, the FAA said it was forming an international team to review the safety of the aircraft, grounded worldwide following two deadly crashes since October.
(Reporting by Stella Qiu and Brenda Goh; Editing by Clarence Fernandez)
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The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse, France, March 20, 2019. REUTERS/Regis Duvignau
April 9, 2019
PARIS (Reuters) – European planemaker Airbus said on Tuesday it saw no legal basis for the United States’ move towards imposing trade sanctions on its aircraft and warned of deepening trade tensions.
Washington on Monday proposed a list of EU products, from large commercial jets to dairy products and wine, on which to impose tariffs as retaliation for European aircraft subsidies.
The EU and the United States have fought for over a decade over mutual claims of illegal aid to plane giants Boeing and Airbus. Both sides have been judged by the WTO to have paid billions of dollars of subsidies to gain advantage, and asked to stop or face potential sanctions.
Airbus spokesman Rainer Ohler said the planemaker had taken measures to comply with the “relatively minor” outstanding requirements. U.S. talk of $11 billion worth of damage from EU subsidies to Airbus was excessive, he added.
“The amount is largely exaggerated and in any case will be defined by the WTO and not the U.S.” Ohler said.
Ohler said a WTO ruling last week against tax breaks for its U.S. rival Boeing should allow the EU to seek “even greater countermeasures.”
He said the ruling showed “no willingness at all on the Boeing side to comply and confirms they are clearly in contravention with WTO rules.”
A source at the European Commission said the EU was preparing for possible retaliation.
“All this is leading to unnecessary trade tensions and shows the only reasonable solution in this long trade dispute is a settlement,” added Ohler.
(Reporting by Tim Hepher; Writing by Richard Lough; Editing by Sudip Kar-Gupta/Keith Weir)
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FILE PHOTO: Employees walk by the end of a 737 Max aircraft at the Boeing factory in Renton, Washington, U.S., March 27, 2019. REUTERS/Lindsey Wasson/File Photo
April 9, 2019
SHANGHAI (Reuters) – China Aircraft Leasing Group Holdings Ltd (CALC) on Tuesday said it has not put its order for 100 Boeing Co 737 MAX jets on hold nor had it suspended payment, rebutting an earlier report by the South China Morning Post (SCMP) newspaper.
The SCMP attributed its information to comments from CALC Chairman Chen Shuang. The Hong Kong-listed lessor said Chen was misquoted.
The Hong Kong-based newspaper later on Tuesday updated its story to quote CALC Chief Executive Mike Poon as saying the company had not stopped payment, but as deliveries were on hold, it did not need to make any payment for the time being.
“Our company currently does not have plans to change our Boeing aircraft orders and we have not suspended payment,” a spokeswoman for CALC told Reuters.
The Hong Kong-listed lessor, controlled by state-owned conglomerate China Everbright Group Co Ltd, placed an order for 50 737 MAX aircraft in June 2017 and later expanded the order.
A Boeing spokesman said the plane maker was focused on supporting customers and to ensure the 737 MAX’s return to commercial flight.
“China Aircraft Leasing Group Holdings has been and continues to be a valued customer and we are sorry for the disruption this situation has caused them,” the spokesman said.
(Reporting by Brenda Goh and Stella Qiu; Additional Reporting by Shanghai Newsroom; Editing by Christopher Cushing)
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