Boeing

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FILE PHOTO: Boeing logo at their headquarters in Chicago
FILE PHOTO: The Boeing logo is seen at their headquarters in Chicago, in this April 24, 2013 file photo. REUTERS/Jim Young/File Photo/File Photo

April 8, 2019

(Reuters) – Boeing Co is now unlikely to deliver more than 500 of its 737 MAX planes to customers this year, and even that will depend on a swift removal of an effective halt in deliveries after June, Wall Street analysts said on Monday.

Deliveries of Boeing’s best-selling aircraft have been frozen by a global grounding of the jet following the crash of an Ethiopian Airlines flight on March 10, which killed all 157 people onboard.

The company’s delivery numbers for March are due to be published on Tuesday and are expected to show customers took less than half of a previous consensus estimate of 46 planes as the groundings prevented flights. An estimate for March last week from another brokerage, Baird, was as low as 19 planes.

Yet Wall Street has been slow to draw conclusions about what that means for how many 737 MAX aircraft Boeing will deliver to customers this year and how many it will have to keep on its own books – even after announcing on Friday it will cut production by 10 planes a month or roughly 20 percent.

Of five well-known brokerages that produce estimates for Boeing’s full-year numbers, Cowen and Jefferies cut their 2019 delivery forecast following Boeing’s decision to lower production.

Cowen now expects full-year deliveries of “around 500”, down from its earlier forecast of 630 737 MAX jets. Jefferies expects Boeing to deliver 497 737 MAX planes, down from 580.

Cowen analysts said in a note that, to deliver even 500 MAX jets this year, Boeing would have to ramp up deliveries to foreign airlines swiftly in the second half.

“It looks like BA won’t deliver its MCAS fix to the FAA until late April and the FAA will have to test the fix before approving it and lifting the grounding,” Cowen and Co analysts said.

“This could delay a resumption of MAX deliveries to U.S. carriers (10% of backlog or ~480 planes) until June … foreign deliveries may not resume until Q3 or possibly Q4,” they added.

The brokerage said while the production rate cut should help resolve the “MAX crisis”, limiting the risk of a massive inventory build-up, it would mean a large 2019 cash hit.

Cowen and Co also reduced its price target on the world’s largest planemaker to $460 from $475 per share.

For a graphic on Boeing shares after second fatal crash, see – https://tmsnrt.rs/2D4i2vp

Analysts have also indicated that Boeing will bear a financial penalty for direct costs such as customers concessions and productivity loss from disruptions associated with the fleet grounding.

Of the 26 analysts covering Boeing, four now have a “hold” rating on the stock, according to Refinitiv Eikon data, while two rate it as “strong sell”.

The grounding on 737’s has so far wiped off nearly $25 billion from Boeing’s market value, making it one of the worst performers on the Dow Jones Industrial Average this year.

Boeing’s decision to cut the production of its 737 aircraft hit the shares of its suppliers on Monday, while its European rival Airbus rose.

For a graphic on Suppliers after second Boeing crash, see – https://tmsnrt.rs/2DeeqXZ

(Reporting by Karina Dsouza and Noor Zainab Hussain in Bengaluru; Editing by Anil D’Silva)

Source: OANN

FILE PHOTO: Traders work on the floor at the NYSE in New York
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 4, 2019. REUTERS/Brendan McDermid/File Photo

April 8, 2019

By Shreyashi Sanyal

(Reuters) – U.S. stock index futures edged lower on Monday after the S&P 500 logged a seven-day winning streak, as investors braced for what could be the first corporate earnings decline since 2016.

With major banks slated to kick off the earnings season later in the week, analysts are expecting a 2.2 percent fall in S&P 500 earnings in the first quarter, according to Refinitiv data.

Still, the U.S. Federal Reserve’s decision to suspend its three-year campaign to tighten monetary policy and hopes of a trade deal with China have lifted the benchmark index to its highest level since Oct. 9, putting it just 1.6% below its record closing high.

“While we underestimated the impact of the Fed’s pivot on equity prices, we see the earnings recession as just the beginning,” Morgan Stanley analysts led by Michael Wilson wrote in a note.

“We think there will need to be some evidence of a real turn in earnings growth for U.S. stocks to advance much further.”

The S&P 500 is trading 16.6 times its next 12-month earnings estimate, up from 14.6 times during the peak of December sell-off but below the 17.3 times at its record high hit in late September.

Taking some air out of Dow futures was Boeing Co, which slipped 4.1% in premarket trading following the planemaker’s decision to cut production of its 737 aircraft by nearly 20%.

At 7:05 a.m. ET, Dow e-minis were down 82 points, or 0.31%. S&P 500 e-minis were down 3.25 points, or 0.11% and Nasdaq 100 e-minis were down 7.75 points, or 0.1%.

Better-than-expected job growth in March helped the S&P 500 clock its best stretch of gains since October 2017. The report also helped allay fears of an economic slowdown, which has periodically roiled financial markets over the past year.

Investors are also closely watching for developments in U.S.-China trade negotiations. The White House said on Friday after three days of trade talks with Chinese officials in Washington that the negotiations “made progress on numerous key issues” but “significant work remains.”

Among other stocks, General Electric Co fell 5.3% after J.P.Morgan downgraded the conglomerate’s shares to “underweight” from “neutral”.

Micron Technology was down 1.8% after Cowen and Co cut its rating on the chipmaker’s stock to “market perform” from “outperform”.

Procter & Gamble Co climbed 1.1% after Wells Fargo raised its rating on the company’s stock to “outperform” from “market perform”.

(Reporting by Shreyashi Sanyal and Sruthi Shankar in Bengaluru; Editing by Anil D’Silva)

Source: OANN

FILE PHOTO: Employees walk by the end of a 737 Max aircraft at the Boeing factory in Renton
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 8, 2019

PARIS (Reuters) – Boeing’s decision to cut the production of its 737 aircraft hit the shares of its suppliers on Monday while its European rival Airbus rose.

Boeing Co said late on Friday it planned to cut its monthly 737 aircraft production by nearly 20 percent after two deadly crashes, signaling it does not expect aviation authorities to allow the plane back in the air any time soon.

Boeing’s decision knocked down the shares of aerospace groups involved in the 737, with Meggitt, Melrose and Safran all falling by between 1 percent to 2.5 percent.

“If the lower rate endures through September 2019, the potential loss of revenue to Meggitt is $8.525m, perhaps somewhat more as we figure the monthly 737 MAX production rate was likely to rise towards 57 per month through 2019,” wrote analysts at brokerage Jefferies.

(GRAPHIC: Suppliers after second Boeing crash – https://tmsnrt.rs/2DeeqXZ)

Deliveries of Boeing’s best-selling aircraft were frozen after a global grounding of the narrowbody model following the crash of an Ethiopian Airlines jet on March 10, killing all 157 people onboard.

Production will be cut to 42 airplanes per month from 52 starting in mid-April, the company said in a statement, without giving an end date.

Investment bank Cowen said Boeing’s decision to cut the production of the 737 was the right thing to do.

“The 737 rate cut to 42/month should help resolve the MAX crisis but with a large 2019 cash hit,” wrote Cowen in a note.

(Reporting by Sudip Kar-Gupta in Paris and Noor Zainab Hussain in Bengaluru; Editing by Keith Weir)

Source: OANN

Aviation World Faces a Moment of Reckoning

AP Photo/Ted S. Warren, File

It was a moment the aviation world had been waiting for since a second deadly crash grounded the 737 MAX fleet: Boeing gathered hundreds of pilots, airline executives, and regulators to unveil a fix that would return the jetliner to the sky.

Read Full Article »

Aviation World Faces Moment of Reckoning Recent Crashes

AP Photo/Ted S. Warren, File

It was a moment the aviation world had been waiting for since a second deadly crash grounded the 737 MAX fleet: Boeing gathered hundreds of pilots, airline executives, and regulators to unveil a fix that would return the jetliner to the sky.

Read Full Article »

FILE PHOTO: Employees walk by the end of a 737 Max aircraft at the Boeing factory in Renton
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 7, 2019

(Reuters) – American Airlines said on Sunday it will extend cancellations of 90 flights a day through June 5 because of the grounding of Boeing 737 MAX aircraft following two deadly crashes in five months.

The extended cancellation by the largest U.S. airline is the latest sign that the airplane is not expected to return to service anytime soon. American Airlines said on March 24 it had canceled 90 flights a day through April 24. On Friday, Boeing said it plans to cut its monthly 737 aircraft production by nearly 20 percent.

(Reporting by David Shepardson; Editing by Phil Berlowitz)

Source: OANN

FILE PHOTO: Boeing logo at their headquarters in Chicago
FILE PHOTO: The Boeing logo is seen at their headquarters in Chicago, in this April 24, 2013 file photo. REUTERS/Jim Young

April 5, 2019

CHICAGO (Reuters) – Boeing Co plans to cut the rate of its 737 production to 42 airplanes per month from 52 as it works to manage the grounding of its MAX aircraft in the wake of two deadly crashes, Chief Executive Officer Dennis Muilenburg said in a statement on Friday.

Muilenburg said the company now knows that a chain of events caused Lion Air and Ethiopian Airlines accidents, with erroneous activation of so-called MCAS anti-stall software “a common link” between the two.

The company continues to make progress on a 737 MAX software update to prevent “accidents like these from ever happening again,” he said.

(Reporting by Tracy Rucinski; editing by Grant McCool)

Source: OANN

Dried flowers are seen at a family grave site for victims of the Ethiopian Airlines ET 302 plane crash in Nakuru County
Dried flowers are seen at a family grave site for victims of the Ethiopian Airlines ET 302 plane crash in Nakuru County, Kenya April 5, 2019. REUTERS/George Nganga

April 5, 2019

By Jason Neely and Duncan Miriri

ADDIS ABABA, Ethiopia/NAKURU, Kenya (Reuters) – Mourning families of Ethiopian Airlines passengers who died in last month’s crash are asking awkward and angry questions of U.S. planemaker Boeing after closely following a preliminary report into the disaster.

Though Ethiopian investigators’ remit was not to find blame, they implicitly pointed at Boeing by recommending it fix a faulty system and saying pilots followed pre-established procedures, before the 737 MAX crashed killing all 157 on board.

Konjit Shafi, who lost her 31-year-old brother Sintayehu, listened to the Ethiopian transport minister’s press conference live on Thursday and wondered why lessons were not learned from a similar MAX disaster in Indonesia last October.

“Boeing – they knew the problem already,” she said, referring to an automatic anti-stall system in the MAX model that tipped the jets down in both cases due to faulty sensors.

“If they could have announced the problem to the airlines first, the accident may not have happened,” she told Reuters in the Ethiopian capital Addis Ababa.

Boeing has expressed condolences and promised a software fix. It will also have awkward questions of its own – over whether the Ethiopian crew correctly followed guidance not to restore power to the anti-stall system following sensor damage, and why the plane was also at unusually high thrust.

For Konjit, the report’s release on Thursday brought back her last words with her brother, who called after takeoff to say hello as the family lived in the flight path.

“He asked me to go outside and see the plane because he was just above our home,” she said, sitting in a dimly lit front room in front of a portrait from Sintayehu’s university graduation and a row of burned candles.

“I called him again and asked how the network was working and he answered ‘I don’t know, it’s just working until now’ and then ‘good bye’. I think it’s at that time that the accident happened.”

Flight 302 had taken off late, at 8:38 a.m., and contact was lost six minutes later. It crashed into a dusty plain under still blue skies with such force that much of the wreckage was buried in the dry earth.

“PROFITS BEFORE LIVES”?

Among those on board were three generations of one Kenyan family – grandmother Anne Wangui Karanja, her daughter and her three young grandchildren.

In the back yard of the family home in the central Kenyan town of Nakuru, bunches of white roses were wilting on a newly-built stone memorial, emblazoned with photos, dates of birth and words of remembrance.

“From the report, we gather that the manufacturer is the problem,” said Quindos Karanja, who lost his mother, sister, nieces and nephew. “My anger comes in because they (Boeing) were putting profits before lives.”

The family read the crash report online as soon as it was published, and have followed news coverage with the aid of a stream of lawyers arriving at their home.

“It is good that the CEO of Boeing came out and owned up, but all we want, before these planes go back into the skies, is that they make sure everything is taken care of,” Karanja said.

“We don’t want to have such a tragedy because it is very painful,” he said.

Boeing has not admitted liability, but its boss Dennis Muilenburg said on Thursday the company was working to eliminate the risk of “erroneous activation” of the so-called MCAS anti-stall system via a software update and pilot training.

The 737 MAX fleet has been grounded worldwide as a precaution. If culpability is found, it could open the world’s biggest planemaker to a slew of lawsuits.

Relatives of an American woman killed in the crash, Samya Stumo, filed the first lawsuit on behalf of a U.S. victim in Chicago. The complaint targeted Boeing and Rosemount Aerospace Inc, the manufacturer of the sensor at the heart of the inquiry.

Stumo is the niece of consumer activist Ralph Nader, who has called for a boycott of the 737 MAX.

“We as passengers need to demand that planes be safe so that noone else dies,” said her mother Nadia Milleron.

“Profits should not come before safety, and we are making this effort here to help prevent a third crash.”

(Writing by Katharine Houreld; Editing by Andrew Cawthorne)

Source: OANN

The U.S. Army is considering whether it should purchase Future Attack Reconnaissance Aircraft (FARA) to replace its aging fleet of Boeing AH-64 Apache and Bell OH-58D Kiowa Warrior copters, reported Task & Purpose.

“The FARA will only replace Apaches in our heavy attack reconnaissance squadrons and this represents about half of the Apache fleet,” a spokesperson for Army Chief of Staff Gen. Mark Milley told Aviation Week.

“There have already been serious questions about whether the AH-64 platform will be able to remain relevant, especially in a high-end conflict environment, through 2048, when the Army plans to retire the very last of the gunships,” Joseph Trevithick at The War Zone explained.

“The Army expects to be integrating significant upgrades into its latest AH-64E Guardian variants through 2026. These include updates to its fire control and targeting systems, improved data sharing and fusion capabilities, better sensors, a more robust ability to work directly with unmanned aircraft and more,” Trevithick added.

In 2018, the Army selected several FARA candidates. Sikorsky is currently in the running with the S-97 Raider high-speed scout and attack helicopter. Bell is developing a V-280 Valor tiltrotor that was also selected.

Video: Sikorsky S-97 Raider flight test:

Video: Bell V-280 Valor flight test:

“We’re looking for an aircraft that, without going into specific requirements or classifications, essentially goes further, can see further, can acquire specific targets further and can engage at greater ranges than current exist and has greater legs – can fly further with a greater payload of weapon systems,” Milley told Congress on March 26, 2019.

The Army could purchase hundreds of FARA helicopters within the next ten years. If a new helicopter replaces the AH-64 and OH-58D, then the service could be looking at 700 new aircraft – a contract worth tens of billions of dollars.

Alex Jones presents video footage of an elderly, Jewish man being attacked and called a Nazi for simply wearing a Make America Great Again hat.

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FILE PHOTO: The Boeing logo is pictured at the LABACE fair in Sao Paulo
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 5, 2019

PARIS (Reuters) – Boeing and suppliers are looking at scenarios including a slowdown in production of the 737 MAX if the plane’s grounding in the wake of two accidents lasts for a number of months, as many analysts expect, a person familiar with the process said.

Boeing declined to comment.

(Reporting by Tim Hepher, Editing by Sarah White)

Source: OANN


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