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New Boeing CEO takes reins amid renewed public firestorm

southwest
Southwest Airlines 737 MAX aircraft at Victorville, California. Image: KCAL9.

If  2019 was an “annus horribilis” for US aerospace giant Boeing, the start to 2020 hasn’t been much better in the run-up to new chief executive David Calhoun officially taking the reins on January 13.

Calhoun, 62, will have his work cut out to earn the $US28 million CBS News estimates he can potentially take home in 2020 as he moves to repair relationships with regulators and customers and focus on getting the 737 MAX back in the air.

In the last week alone, news emerged that the US Federal Aviation Authority has proposed fining Boeing $5.4 million over potentially defective wing parts on its 737 MAX aircraft, its outgoing CE0 made global headlines thanks to a massive payout of at least $US62 million and series of stunning internal messages left its credibility seriously tarnished.

One of its planes was shot down by the Iranian military, a major supplier announced massive layoffs due to the MAX crisis and the company is still grappling with the European Commission review of its deal to take a major stake in Embraer.

READ: Iran admits to shooting down Ukrainian 737.

Boeing is no longer in the spotlight for the downing last week of the Ukrainian 737 after the Iranian admission its Revolutionary Guard shot down the jet in what it says was a mistake.

A European Commission review that delayed the Embraer deal is also underway again after a two-month hiatus with a new decision deadline of April 30.

But that’s about as good as the recent news has been for the embattled plane-maker.

The $US5.4 million fine for issues involving slat tracks on the leading edge of a wing is on top of a $US3.9 million fine the US regulator proposed last month for similar problems on older 737NG jets.

The manufacturing problem hasn’t caused an issue with aircraft but the FAA says Boeing failed to adequately oversee its suppliers to ensure they complied with its safety assurance system and then knowingly submitted aircraft for FAA approval when it knew they had failed strength tests.

The company said it would ensure that all inspections and necessary part replacements were performed on the MAX aircraft before return service.

The eyebrow-raising payout to ousted CEO Dennis Muilenburg does not include any severance pay or a 2019 annual bonus. He also forfeited stock worth $US14.6 million.

However, the value of stock and pension entitlements to which he is contractually entitled totals $62.2 million at a time major supplier Spirit AeroSystems announced it was laying off 2,800 employees because of ongoing uncertainty about when the MAX will resume service.

Boeing has said it does not at this stage expect to furlough staff but it is this month suspending production of the 737 MAX and there is still no publicly available date for the grounded fleet to resume service.

The aircraft has been grounded since March 2019 after new flight control software was linked to fatal crashes at Indonesia’s Lion Air and Ethiopian Airlines. The two crashes killed a combined 346 people.

Getting the MAX back in the skies will be Calhoun’s top priority but the job of convincing the public everything is safe and above board has not been made easier by pages of damaging internal messages released last week.

The messages, seen by AirlineRatings, have stunned the industry with their cavalier attitude to safety and the regulatory process as well as their disdain for airlines.

The messages go back as far as 2013 but may relate to the development of 737 MAX flight simulators.

They reveal a campaign by some elements in the company to prevent regulators and airlines introducing simulator training for MAX pilots.

This included dissuading what appears to be an unnamed Jakarta-based airline that its pilots needed additional training.

The emails ridiculed regulators as well as fellow Boeing employees with one email noting that the MAX was “designed by clowns, who in turn are supervised by monkeys”.

There is talk of “Jedi mind tricking” various parties.

The chief technical pilot for the MAX talks about being under pressure to prevent regulators from requiring simulator training.

“I want to stress the importance of holding firm that there will not be any type of simulator training required to transition from NG to MAX,’’ he says. “Boeing will not allow that to happen. We’ll go face to face with any regulator who tries to make that a requirement.”

Boeing recently surprised many by dropping its opposition to simulator training for the MAX ahead of the return to service.

There are also further suggestions that employees may have concealed problems with the MAX  Flight simulators during FAA certification and in one exchange an employee says he would not put his family on a “MAX simulator trained aircraft”.

“I still haven’t been forgiven by God for the covering up I did last year,’’ another message says.

In releasing the messages, Boeing condemned the language used and said a review of MAX simulators concluded they were functioning correctly.

READ: Boeing confident on MAX simulators despite internal messages.

However, they have provided ammunition for US lawmakers investigating the MAX crashes and Boeing’s relationship with the FAA.

“They paint a deeply disturbing picture of the lengths Boeing was apparently willing to go to in order to evade scrutiny from regulators, flight crews, and the flying public, even as its own employees were sounding alarms internally,’’  said House Committee on Transportation and Infrastructure chair Peter DeFazio.

The FAA said in a statement its experts have determined that nothing in the documents pointed to any safety risks that had not identified as part of the MAX review process but described the tone and content of some messages as “disappointing”.

“The FAA maintains a rigorous process for qualifying flight simulators,’’ it said.

“Upon reviewing the records for the specific simulator mentioned in the documents, the agency determined that piece of equipment has been evaluated and qualified three times in the last six months. Any potential safety deficiencies identified in the documents have been addressed.”

 

Serious flaws in Iran’s claims on flight PS 752

Iran missile strike 737
The wreckage from the 737. Photo: ISNA

Iran’s explanation for the tragic loss of Flight PS 752, the Ukrainian Boeing 737 which was shot down with 176 onboard, is seriously flawed.

The Iranian authorities have claimed that the 737 had turned toward a military base, yet it was just following a standard departure route called “Parot 3G” which requires a slight right turn after take-off.

The flight path of the previous PS752 flights almost always followed the same flight path, while aircraft leaving Tehran to the north since the fatal flight, are also using the departure route.

AirlineRatings.com on CNN:

READ: Boeing’s 777X being prepared for first flight 

Here are three of those previous flights for PS 752 in the days before the fatal flight from Flightradar24:

And on the morning of the tragedy Turkish Airlines flight TK873 departed at 5.07 am – just over one hour earlier – and used the identical flight path.

Here is the flight path of TK873:

There were about five flights in the hour before the Ukraine International Airlines 737 took off.

In a statement, the nation’s armed forces said it targeted the passenger plane unintentionally. It attributed the crash to radar activity and fear of US action.
“The Islamic Republic of Iran deeply regrets this disastrous mistake. My thoughts and prayers go to all the mourning families,” Iranian President Hassan Rouhani said.
A statement Iranian armed forces headquarters said: “The aircraft came close to a sensitive IRGC military centre at an altitude and flight condition that resembled hostile targeting. Under these circumstances, the aircraft was unintentionally hit, which unfortunately resulted in the death of the many Iranian and foreign nationals.”
Iranian Foreign Minister Javad Zarif tweeted; “Human error at time of crisis caused by US adventurism led to disaster.”
The shooting down of PS752 is just one of many.
Since 1978 there have been 21 confirmed commercial planes hit by surface-to-air missiles, claiming 1237 lives. Adding to the misery are the six commercial flights downed by air-to-air missiles, which have taken 415 lives. Most of these fatalities have occurred in Africa, the Middle East and former Soviet Union countries.

Iran admits to shooting down Ukrainian 737

Ukrainian 737
A Ukraine International Airlines Boeing 737-800. Photo: tjdamstadt/Wikimedia Commons.

Iran has admitted to shooting down a Ukrainian 737 near Tehran this week, killing 176 passengers and crew.

According to a CNN report, the general staff of Iran armed forces admitted a Ukrainian plane that crashed on Wednesday was brought down due to human error. Iran targeted the passenger plane unintentionally, Iran’s Press TV reported.

Images shown yesterday of the crash site showed part of a missile amongst the debris.

The incident happened minutes after the Ukraine International Airlines 737 heading to Kiev had taken off from Tehran’s Imam Khomeini airport and came amid heightened tensions between the US and Iran over the assassination of Iranian commander Qassem Soleimania.

Iran had earlier launched missile attacks on two bases in Iraq staffed by US personnel.

A statement run by Iranian state media Saturday said the plane was mistaken for a hostile target after it turned towards a sensitive Revolutionary Guard military center.

It said the military was at its highest level of readiness due to heightened tensions with the US.

“In such a condition, because of human error and in a(n) unintentional way, the flight was hit,” the statement said, adding that Iran would upgrade its systems to prevent a similar accident.

Iran Foriegn Minister Javad Zarif tweeted that the tragedy was the result of human error at a time of crisis “caused by US adventurism”.

“Our profound regrets, apologies and condolences to our people, to the families of all victims, and to other affected nations,” he said.

Iran initially denied that the plane had been shot down and its decision to come clean came after Western leaders revealed intelligence that indicated a missile strike.

The push was spearheaded by  Canadian Prime Minister Justin Trudeau who announced Thursday (North American time) there was evidence the Boeing 737 was shot down by a  ground-to-air missile.

Canada had 63 citizens among the 176 who died when the jet plummeted to the ground,  apparently on fire, and exploded.

READ: More than 170 dead as Boeing 737 crashes in Tehran.

Trudeau said Canada had intelligence from multiple sources ” including our allies and our own intelligence”.

He would not detail the evidence but said it was enough to allow him to share the suggestion with the Canadian people.

“The evidence indicates that the plane was shot down by an Iranian surface-to-air missile,” Trudeau told a Press conference.

“This may well have been unintentional.

“This new information reinforces the need for a thorough investigation into this matter.

“Canada is working with its allies to ensure that a thorough and credible investigation is conducted to determine the causes of this fatal crash.

CBS News said sources had told it a satellite detected the infrared signature of two missile launches followed by a “blip” of an explosion.

Newsweek quoted US officials and an Iraqi source as saying the plane was hit by a Russian-made Tor missile.

UK Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison also backed the ground-to-air missile scenario.

Iran has now invited Boeing and the US National Transportation Safety Board to join the investigation and the NTSB has confirmed it has designated a representative.

Boeing 777X out of paint shop being prepared for first flight

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Boeing 777X being prepared for first flight. Credit Matt Cawby

Boeing’s 777X, WH001, is out of paint shop and being prepared for the first flight, which is expected this month.

According to @mattcawby the 777X left the paint hangar on January 7 and was moved to the fuel dock for primary flight control system testing.

He suggests that taxi tests will start “very soon.”

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The 777X WH001 is for electromagnetic compatibility antenna scan testing on January 11.

Upgraded GE engines were installed in December.

The upgrade incorporates improvements to fix durability problems that were unearthed late in the engine test program last summer.

The issue, centred on the stator vanes in the compressor and forced Boeing to delay the start of flight tests of the 777-9 from July 2019 to early 2020.

Deliveries of the Boeing 777X are delayed till early 2021.

Boeieng 777X

The aircraft combines the best features of the current 777 with a longer and wider internal fuselage, new engine and the composite wing design from the Boeing 787.

It also features 20 per cent larger windows and has lower pressurization altitude to reduce jet lag.

WATCH: Amazing thermal video of Boeing 757 landing

The 777-9X seats more than 400 passengers, depending on an airline’s configuration choices.

With a range of more than 8,200 nautical miles (15,185 km), the aircraft will have the lowest operating cost per seat of any commercial aircraft says, Boeing.

The second member of the family, the 777-8X, will be the most flexible jet in the world claims Boeing. The aircraft will seat 350 passengers and offer a range capability of more than 9,300 nautical miles (17,220 km).

The driving force behind the aircraft is Emirates President Sir Tim Clark, whose airline is the lead buyer with an order for 126. This order was originally 150, however at the Dubai Air Show in November the airline exercised substitution rights and converted 24 Boeing 777X aircraft into 30 787-9s.

With the conversion, Emirates remains the world’s biggest 777X customer with 126 aircraft on order and the largest 777 operator with 155 aircraft today.

777X

 

Boeing confident on MAX simulators despite internal messages

Boeing MAX 737
Photo: Boeing

Boeing says a review of its 737 MAX simulators concluded they are functioning correctly despite new messages that raise questions about how the company dealt with the regulators in getting them certified.

The company on Thursday said it was publicly releasing additional messages sent to the Federal Aviation Administration and law-makers prior to Christmas and that it remained confident in the regulatory process for qualifying the MAX simulators.

Similar to damaging messages unveiled in October, the new messages include conversations among Boeing employees about software problems and other issues with MAX simulators and suggest some may have been concealed from the Federal Aviation Administration.

READ: Canadian PM in starling claims 737 was hit by a missile.

“I still haven’t been forgiven by God for the covering up I did last year,” The New York Times quotes one of the employees as saying in one of the latest messages from 2018, noting this is apparently in reference to interactions with the regulator.

An employee asks in another message: “Would you put your family on a Max simulator trained aircraft? I wouldn’t.”

A colleague responds: “No.”

Boeing acknowledged the messages, which related to development and certification of MAX simulators in 2017 and 2018, contained provocative language and in some cases “raise questions about Boeing’s interactions with the FAA in connection with the simulator qualification process”.

“Having carefully reviewed the issue, we are confident that all of Boeing’s MAX simulators are functioning effectively,” it said.

“The qualification activities referenced in these communications occurred early in the service life of these simulators.

“Since that time, both internal and external subject matter experts have repeatedly tested and qualified the simulators at issue.

“Indeed, more than twenty regulatory qualifications of MAX simulators, performed by the FAA and multiple international regulators, have been conducted since early 2017.”

The company said a specific Miami simulator used for the early qualification tests had been re-evaluated six times.

It said the simulator software had been constantly improving during this time, through repeated cycles of testing, qualification, and revision of the software code.

“These communications do not reflect the company we are and need to be, and they are completely unacceptable,” it said.

“That said, we remain confident in the regulatory process for qualifying these simulators.”

But House Committee on Transportation and  Infrastructure chair Peter DeFazio said the new emails were “incredibly damning”.

He said they showed a coordinated effort dating back to the earliest days of the 737 MAX program to conceal critical information from the regulators and the public.

“They paint a deeply disturbing picture of the lengths Boeing was apparently willing to go to in order to evade scrutiny from regulators, flight crews, and the flying public, even as its own employees were sounding alarms internally,’’ he said.

“I can only imagine how painful it must be for the families of the 346 victims to read these new documents that detail some of the earliest and most fundamental errors in the decisions that went into the fatally flawed aircraft.”

Boeing said the additional documents were identified in legal reviews of the MAX program and the decision to provide them to the FAA and Congress reflected its transparency and cooperation.

“We welcome, and will fully support, any additional review the FAA believes is appropriate in connection with any of these matters, as well as the continued involvement of the relevant congressional committees with these issues,” it said.

Apologizing for the messages, Boeing said it had made significant changes to the company’s culture, safety processes and organization.

“The language used in these communications, and some of the sentiments they express, are inconsistent with Boeing values, and the company is taking appropriate action in response,” it said.

“This will ultimately include disciplinary or other personnel action, once the necessary reviews are completed.”

All Nippon gears up for double daily A380 flights to Hawaii

All Nippon
An artists conception of the three A380s. Image: All Nippon Airways

Its days may be numbered but the Airbus A380 continues to impress passengers as All Nippon Airways moves to launch its third superjumbo on flights between Tokyo Narita and Honolulu.

The Japanese carrier expects to receive its third “FLYING HONU” in April and increase A380 flights on the Narita-Honolulu route from 10 to 14 a week from July 1.

The colorful livery of the giant planes has been designed to represent facets of Hawaii.

READ: Airlines join wave of support for Aussie bushfire victims

The blue A380 entered service in May 2019 and represented Hawaiian skies while the second, emerald green plane alludes to the clear water around the islands.

All Nippon food vote public
The blue plane. Photo: ANA

The latest plane will feature an orange livery inspired by the Hawaiian sunset and is expected to roll-out at Airbus this month.

All Nippon Airways says both the aircraft and their unique livery have been well-received by passengers.

“We took great care in the design of our FLYING HONUs to add touches such as family-friendly seating and a custom interior that make it well suited to the Narita-Honolulu route,” said ANA senior vice president Seiichi Takahashi.

“Combined with design cues from Hawaiian culture, the unparalleled comfort and capacity of the FLYING HONUs will allow ANA to provide unrivaled service and efficiency on this increasingly prominent route. “

The upper deck of the A380 boasts eight first-class seats, the first time this class has been offered on the leisure route, each with a door to ensure privacy.

The 56 business-class seats are a popular option for honeymooners and families and allow people to sit next to each other while providing individual aisle access.

Completing the upper deck is a premium economy cabin with 20 seats.

The main deck has 383 economy seats, including 60 couch seats that allow passengers to lie across three or four seats by folding up the leg rests.

All classes have access to bar counters and there is a multi-purpose room for mothers with babies.

The airline says it has designed the cabins to allow passengers to feel the Hawaiian spirit from the start of their holiday with lighting that is evocative of blue skies, sunsets, night skies and rainbows.

Industry player Willie Walsh to retire from IAG

walsh IAG
IAG CEO Willie Walsh.

First Emirates president Tim Clark announced his retirement and now another major industry figure, International Airlines Group boss Willie Walsh, is stepping down.

IAG said Thursday that Walsh had decided to retire on June 30 and would stand down from the role and the IAG board from March 26.

He will be replaced by current Iberia chief executive Luis Gallego.

Walsh, a combative Irishman who was not afraid to mince words, was the prime force behind the merger of British Airways and Iberia to form the basis of IAG, which also now controls Aer Lingus and Vueling.

READ:  Sir Tim Clark, one of the airline industry’s greatest visionaries.

Walsh started at Aer Lingus as a pilot in the late 70s and moved through the ranks to ultimately run the Irish carrier.

He became the chief executive of British Airways in 2005 to replace Australian Rod Eddington.

Walsh was a hard-nosed negotiator who moved to reduce union power at BA while tackling a crippling pension deficit and ensuring the airline’s profitability.

However, he has been criticized for taking BA downmarket and undermining the carrier’s status as the self-proclaimed “world’s favourite” airline.

Walsh said in his retirement announcement that it had been a privilege to have been instrumental in the creation of and development of IAG.

“I have had the pleasure of working with many exceptional people over the past 15 years at British Airways and at IAG,’’ he said.

“Luis has been a core member of the team and has shown true leadership over the years and I have no doubt he will be a great CEO of IAG.”

IAG chairman Antonio Vazquez noted the company had become one of the world’s leading airline groups under Walsh’s leadership.

“Willie has been the main driver of this unique idea that is IAG. I hugely admire his commitment, strong leadership and clear vision, always ready to take on whatever challenges lay ahead of him,’’ he said.

“I am deeply respectful of what he has achieved as CEO of this Group, of his sense of fairness, his transparency and his capacity to integrate people regardless of nationalities or backgrounds.”

Gallego, who started his career in the airline industry in 1997 with Air Nostrum and has been CEO of Iberia since 2014, said he was confident he could build on the strong foundations built by Walsh.

Canadian PM in startling claim Boeing 737 was hit by missile

Ukrainian 737
A Ukraine International Airlines Boeing 737-800. Photo: tjdamstadt/Wikimedia Commons.

Canadian Prime Minister Justin Trudeau has claimed there is evidence a Ukraine International Airlines Boeing 737 that crashed near to Tehran was shot down by a  ground-to-air missile.

Canada had 63 citizens among the 176 who died when the jet plummeted to the ground,  apparently on fire, and exploded.

The incident happened minutes after the 737 heading to Kiev had taken off from Tehran’s Imam Khomeini airport and came amid heightened tensions between the US and Iran over the assassination of Iranian commander Qassem Soleimania.

READ: More than 170 dead as Boeing 737 crashes in Tehran.

Iran had earlier launched missile attacks on two bases in Iraq staffed by US personnel.

Trudeau said Canada had intelligence from multiple sources ” including our allies and our own intelligence”.

He would not detail the evidence but said it was enough to allow him to share the suggestion with the Canadian people.

“The evidence indicates that the plane was shot down by an Iranian surface-to-air missile,” Trudeau told a Press conference.

“This may well have been unintentional.

“This new information reinforces the need for a thorough investigation into this matter.

“Canada is working with its allies to ensure that a thorough and credible investigation is conducted to determine the causes of this fatal crash.

“As I said yesterday, Canadians have questions and they deserve answers.”

The Canadian claim comes as US media reported intelligence officials there also raised the possibility of a missile strike and President Donald Trump said he had his suspicions about what happened.

“It was flying in a pretty tough neighborhood and somebody could have made a mistake,” Trump told reporters. “Some people say it was mechanical, I personally don’t think that’s even a question.”

CBS News said sources had told it a satellite detected the infrared signature of two missile launches followed by a “blip” of an explosion.

Newsweek quoted US officials and an Iraqi source as saying the plane was hit by a Russian-made Tor missile.

UK Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison also backed the ground-to-air missile scenario.

“I can confirm that we have had similar intelligence as our partners have,” Morrison told Sydney radio station 2GB. “This is not a deliberate act as we can determine … it’s a terrible accident.”

Iran has denied the claims and dismissed them as “illogical rumors”.

The head of Iran’s Civil Aviation Authority, Ali Abedzadeh, told CNN the plane would have gone into free fall if it was hit by a missile.

“It is impossible that a missile hit the Ukranian plane,” he said.

An early report from Iranian investigators said the plane was on fire and tried turning back but its crew did not radio for help.

Ukrainian officials said they were considering terrorism, a missile strike and catastrophic engine failure as potential causes for the crash.

The Iranians have said they will not send the plane’s black boxes to the US to be read and want to keep them in Iran if possible.

However, they have said Ukrainian investigators will have access to the recorders and have now urged manufacturer Boeing to send representatives to join the investigation.

The US National Transportation Safety Board late Thursday confirmed it had been notified of the accident by the Aircraft Accident Investigation Board of the Civil Aviation Organisation of Iran and had designated an accredited representative to the investigation.

“The NTSB continues to monitor the situation surrounding the crash and evaluate its level of participation in the investigation,” it said, noting it would not speculate on the cause of the tragedy and directing questions to the AAIB.

 

Airlines join wave of support for Aussie bushfire victims

bushfires airlines
The Australian bushfires. Image: Seven News.

As Australia continues to battle its massive bushfire emergency, airlines have been ponying up to help victims and offer support for emergency workers battling the unprecedented crisis.

And it hasn’t just been the homegrown carriers opening their wallets.

The Qantas Group, which includes low-cost carrier Jetstar, donated $A1 million in cash to the Red Cross Disaster Relief and Recovery Fund and has been making onboard announcements urging customers to donate.

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It is setting up collection points in terminals and set up a system for frequent flyers to redeem points for donations.

The airline is also one of the companies offering paid leave to volunteer firefighters and has been working with US aid agency Direct Relief to get 100,000 donated masks to bushfire-affected communities.

Qantas expects its total support to top $A3m.

“The bushfires cutting through communities and the environment across Australia has been shocking and tragic,’’ the airline said.

“The bravery of our volunteer firefighters, emergency services and the military has been inspiring and the kindness of individuals and community groups incredibly heart-warming.”

The Virgin Australia Group has been supporting the Salvation Army Disaster Appeal and matching staff donations dollar-for-dollar up to $A250,000.

The company has been offering passengers affected by the fires the ability to change bookings without penalty and also offers staff who are volunteer “fireys” paid leave.

Also on offer is support for community organizations requiring travel or logistical support.

“Through our relationships with the Salvation Army Emergency Services and organization Team Rubicon, we stand ready to support flights for emergency workers and volunteers from those organizations who are being flown to affected areas as needed,” Virgin said.

“The group has also been providing discounted airfares to emergency service organization throughout the duration of the bushfire period,.’

Across the Tasman, Air New Zealand has donated $A100,000 and is flying Kiwi firefighters and emergency personnel to Australia.

Acting chief executive Geoff McDowall said the airline had assured the New Zealand government it would continue to help.

“It is simply devastating to see this scale of loss and our hearts go out to our Australian colleagues, customers and neighbors. Kia kaha (stay strong),’’ McDowall said.

Singapore Airlines has also donated $A100,000 to the red Cross Disaster Relief and Recovery Appeal.

It is also helping customers affected by the fires on a case-by-case basis and offering support with booking changes.

“Australians have supported us for the past 53 years and we hope that this donation will go some way to supporting the people and communities affected by these bushfires,” Singapore Airlines regional vice president Philip Goh said.

“It is difficult to fathom the scale of the fires across Australia as it has now affected an area more than 140 times the size of Singapore.”

United Airlines is donating $US250,000 to the GoFundMe campaign set up by Hollywood personality Ellen DeGeneres. It is also matching donations for wildlife relief as well as up to $50,000 of donations from its MileagePlus members.

On the manufacturer front, Boeing has donated $A1 million for recovery and relief efforts.

The US aerospace giant, which has a significant presence in Australia, said the contributions would be directed across the country through the Australian Red Cross.

“Boeing’s global team, including our 3,800 employees across Australia, are deeply saddened by the tragic impact of the Australian bushfires,” interim chief executive  Greg Smith said.

“Through our partnership with the Australian Red Cross, we are working quickly to bring recovery and relief efforts to those residents most impacted by these devastating fires.”

The company is also matching qualifying employee contributions made to eligible nonprofits for Australian bushfire relief efforts.

November air freight figures mark 13 months of decline

qantas
Photo: Qantas

The prospect of the holiday season failed to push global air freight growth into positive territory in November as the industry volumes experienced their 13th consecutive month of year-on-year declines.

The November decline of 1.1 percent compared to 2018 marked the best performance in eight months and was boosted by the growing importance of e-commerce events such as Singles day in Asia and Black Friday.

But freight operators continued to face headwinds from the trade war between the US and China, the deterioration in world trade and the slowing in global economic growth, according to the International Air Transport Association.

READ: Boeing reverses stance on MAX simulator training

Global freight capacity continued to grow, rising 2.9 percent to mark the 19th month where capacity had outstripped demand.

IATA director general Alexandre de Juniac said the November decline was better than the 3.5 percent fall seen in October.

“But it is a big disappointment considering that the fourth quarter is usually air cargo’s peak season,’’ he said.

“Looking forward, signs of a thawing in US-China trade tensions are good news. But trading conditions at present remain very challenging.”

The Asia-Pacific region saw the biggest decline of 3.7 percent as it continued to be buffeted by US-China trade tensions.

However, IATA noted the thawing of trade relations and robust growth in key regional economies were positive developments.

Other regions to suffer sharp demand declines included the Middle East (down 3 percent) and Latin America (down 3.4 percent).

IATA warned that growth in the Middle East, which had seen a modest upward seasonally-adjusted freight trend, could be threatened by escalating geopolitical tensions.

The North American decline was in line with the global average at 1.1 percent while demand grew 2.6 percent in Europe thanks to better than expected third-quarter economic activity in some big economies.

Africa proved the big winner with a 19.8 percent surge in demand attributed to strong investment links with Asia.

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