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Why the Boeing fiasco will not kill the 737 MAX.

Boeing Ethiopian 737 MAX
Image: CNBC

This week should have been a triumph for Boeing with the much-anticipated rollout of the 777X in Seattle.

Instead, the 777X has been quietly rolled out to staff and the aviation giant is facing a major crisis involving its most popular product.

The crash of two new aircraft of the same model, the 737 MAX 8, within less than five months of each other has battered the aerospace company’s share price, inflicted reputational damage and raised safety concerns about the latest variant of its workhorse 737 family.

READ: Trump announces US grounding of all Boeing 737 Max planes

Boeing has faced crises before.  Most recently, the launch of the Boeing 787 Dreamliner turned out to be more of a nightmare as it was hit by production problems and the fledgling fleet was grounded for three months in 2013 due to overheating batteries.

Yet how many people today step on board a now commonplace 787 worrying whether the batteries will catch fire?

The planemaker quelled public disquiet by introducing a solution to the problem and embarking on a publicity offensive to explain what had happened and how it had dealt with it.

But that crisis involved a much smaller number of aircraft and nobody died.

This time 346 people are dead, social media and the 24-hour news cycle reign supreme and company’s problems are unfolding in a politically-charged global climate.

READ: The 737 is the plane many at Boeing did not want.

A big problem for Boeing is that is not clear yet what caused the crash but, even so,  it lost control of the story early on.

The immediate damage could be seen on the New York Stock Exchange

Boeing’s share price experienced its biggest intraday fall since 9/11 on news that the second 737 MAX 8, Ethiopian Flight 302, had crashed with 157 people on board.

Two days of significant falls wiped almost $US28 billion from Boeing’s market cap but the share price appeared to have stabilized by market close on Wednesday, closing 0.46 percent higher at $US377.14.

This was despite the US announcement that the Federal Aviation Administration had joined other regulators in suspending  737 MAX operations and Boeing’s revelation that it had recommended the global fleet be grounded.

There is likely to be more financial pain coming as airlines claim compensation for the groundings, something Norwegian Air has already vowed to do.

Carter Copeland, the president and lead aerospace analyst at Melius Research, told CNBC  the cost reparations and fixes could be as high as $US1 billion and other analysts have come up with similar back-of-the-envelope calculations.

Some airlines might also consider their orders for the fuel-efficient jet: Virgin Australia softened its language this week on the question of whether it would proceed with its order and Garuda Indonesia and Lion Air have  threatened to cancel.

However, that would mean they would not benefit from the advantages offered by the MAX in terms of fuel efficiency, range and costs. Switching to the rival Airbus A320neo family is a major exercise and can result in a less efficient mixed fleet.

Then there is the reputational damage as passengers, rightly or wrongly, link the new Boeing 737 to safety issues.

In addition to the sobering fact that two relatively new planes of the same type have gone down within months of each other, there are also so-far unproven suggestions that the two might be linked.

Speculation about this has generated no shortage of TV images with people saying that they don’t want to fly on a 737 MAX because they’re worried the plane is unsafe.

Boeing, pilots and several airlines continue to stand by the aircraft and its safety. These include airlines that have had experience operating the plane such as US carriers Southwest and American as well as Fiji Airways.

But that stance suffered something of a dent Wednesday when the FAA said new satellite data and about the aircraft’s configuration during take-off could together indicate some similarities between the Ethiopian and Lion Air tragedies.

It said these warranted “further investigation of the possibility of a shared cause for the two accidents that needs to be better understood and addressed”.

Further adding to this was comments by Ethiopian’s chief executive that one of the doomed plane’s pilots had told air traffic control the plane was experiencing “flight control problems”.

The key to the conundrum will be, as it always has been, will be the information retrieved from the flight data recorder (FDR)  and cockpit voice recorder (CVR).

It was the FDR that gave some insight into what happened in the Lion Air crash and showed that the pilot was fighting the plane’s automatic systems to the end.

Why that was and what part a new flight control law known by the acronym MCAS that tried to push down the plane’s nose after it received erroneous information from a faulty angle of attack sensor has yet to be fully explained.

Maintenance appears to have played a role and an important factor was the failure of the pilot to follow to an established procedure to shut down the automatic trim stabilization system.

The US Federal Aviation Administration issued an emergency airworthiness directive after the Indonesian crash warning pilots to follow procedures and has since been working with Boeing on improving the system.

It could still be that the two crashes are not linked and it seems unlikely that the sequence of events leading to the Lion Air accident would be replicated exactly in Ethiopia.

Ultimately, it will down to Boeing and regulators to do what they did with the 787s in 2013: explain to the public what happened and what they are doing to make the MAX family safer.

A saving grace for the planemaker is that the public memory is notoriously short and today’s controversy is likely to quickly become whatever is the digital equivalent of a fish wrapper.

There’s even precedent for this involving the 737, albeit without the firestorm accelerator of the internet.

USAir in 1994 had two fatal accidents over three months and suffered an initial hit to its reputation and sales but it had recovered just 12 months later.

The second of those crashes, USAir Flight 427, was due to a fault in the 737 rudder system and produced the longest investigation in the history of the National Transportation Safety Board.

After an investigation lasting more than four and a half years, the NTSB concluded in 1999 that a jam in the rudder caused it to deflect in a direction opposite to that commanded by the pilots.

It also concluded that similar rudder problems were involved in crashes of 737s operated by United Airlines and Eastwind Airlines.

Boeing pointed to pilot error as the cause of the USAir accident but agreed to redesign the rudder system and paid for a retrofit of the global 737 fleet.

The 737 motored on as Boeing’s biggest success story to become the best-selling jet in history.

The 737 is a plane many at Boeing did not want

Boeing's first 737
Boeing's first 737.

Many at Boeing never wanted to build the world’s bestselling and most reliable plane, the 737, and at one stage the non-believers almost sold the design to a consortium of Japanese aerospace manufacturers.

Key to the success of the 737 has been the ability of Boeing to improve the plane. The latest design, the MAX, is the fourth major upgrade but the subject of a global grounding.

Boeing started studies of a short-haul jet plane to supplement the company’s very successful 727 for short routes.

Design work began in May 1964, with the original design for a 60-passenger plane for routes up to 1600km.

The plane flew for five hours before landing successfully.

Many in Boeing thought the move was crazy because three other competitors already had similar jets flying or about to fly and there were few major customers left.

But Boeing had a major advantage with its family concept as its 737 would use many of the parts and the same cabin cross-section (six across) as its best-selling 707 and 727.

Boeing’s sales pitch was big-jet comfort on regional routes.

Germany’s Lufthansa and United Airlines were sold and the 737 was launched.

By the time the first flight took place in April 1967, 17 airlines had signed up. However, storm clouds were brewing for Boeing.

By 1969 the 747 was in trouble with its weight and engine performance and Boeing’s Super Sonic Transport had to be totally redesigned.

In 1970, starved of funds, Boeing looked for products to quit and the 737 which had sold only 23 that year was the prime candidate.

The 747’s issues were resolved with compromises on all sides, the US government canceled the SST in 1971 and the pressure came off. The future was not going to be high-speed travel across the globe but more a focus on regional flights connecting thousands of cities, with the 737 set to be both the magic carpet and a golden goose.

There is possibly no better example of how engine and aerodynamic technology has advanced aviation than the 737.

The first 737 could carry 124 passengers over 2775km, whereas the latest version to fly, two weeks just last Friday, the 737MAX 9 can carry 204 passengers in the same configuration over 7000km. And the fuel consumption improvements have been spectacular.

Since 2000, for instance, the fuel burn has declined 20 percent from the current model in airline service to the MAX.

As well as countless under-the-skin improvements, Boeing has given the 737 a new interior incorporating design concepts from its bigger brothers the 787 and 777.

Dubbed the Sky Interior, it totally transforms the 737. Boeing is now building 52 737s a month and later this year will lift that to 57 to clear the backlog.

Since 1965 Boeing has received orders for 15146 737s, with 4668 still to be delivered.

The problem now for Boeing is how to replace its bestselling jet.

The aerospace company may launch one more version of the MAX series, with 12 extra seats, but a clean-sheet design is needed to take it to the middle of this century.

Challenge is where is the sweet spot to capture the bulk of the market. The original 737 was positioned in the 90-150 seat segment but that has grown to 150-220 seats over the years, with airlines now asking for even more seats.

More seats mean a push from a single-aisle plane to a twin-aisle for ease of boarding but that makes it less attractive at the lower capacity end of the market.

Boeing, and its now merged partner McDonnell Douglas dabbled with 200-seat twin-aisle designs in the 1980s and 1990s but airlines were lukewarm.

The width of the cabin allowed for economy seating of 2-2-2 rather than the familiar single-aisle 3-3.

But fast forward to today’s nightmare of passengers’ demands, particularly in the US, for carry-on baggage only and a twin-aisle solution with more overhead space, and the design plans have great appeal.

Hawaiian still the one when it comes to US on-time arrivals

Alaska Air

Hawaiian Airlines remained the US airline to take if you want to arrive on time in 2018 as it chalked up its 15th successive year as the nation’s most punctual airline.

The airline’s 87.8 percent on-time arrival rate for the year made it a clear winner and was 8.6 percentage points ahead of the national on-time arrival average of 79.2 percent.

Other airline networks with an above-average performance included Alaska Airlines (82.7 percent of arrivals on time), Delta Air Lines (83.2 percent) and Spirit Airlines (81.1 percent).

Southwest Airlines sat on the national average with 79.2 percent of its aircraft arriving on time.

READ: American joins the ban on kittens, puppies, but small horses still allowed.

Of the other two major carrier networks, United Airlines just edged out American Airlines with 77.9 percent of its flights arriving on time compared to 77.4 percent of its rival’s services.

The worst performer was Frontier Airlines with an on-time arrival figure of 69.4 percent. It trailed rivals JetBlue Airways (71 percent) and Allegiant Air (76.9 percent).

Hawaiian is celebrating its 90th anniversary and Hawaiian chief executive Peter Ingram said the punctuality win reflected the meticulous focus and commitment of its employees.

“Nature presented us with some operational challenges last year, including increased volcanic activity in East Hawai’i and flooding on both ends of the Island chain, and our teams worked together to keep our flights operating safely and as punctually as possible,’’ he said.

The carrier will launch its 13th North American destination on April 4 when it starts non-stop service between Honolulu and Boston.

The new service continues the growth that has seen Hawaiian expand its international network in the last 15 years with service to Sydney, Haneda and Narita airports in Tokyo, Seoul, Osaka, Sapporo, Brisbane and Auckland.

Its 260-plus daily flights include more than 170 daily services operated on average between the Hawaiian Islands using Boeing 717-200 aircraft.

 

 

 

 

Boeing unveils 777X to employees

777X

Boeing has unveiled its giant Boeing 777X to its employees in a low key event at Everett Washington.

No media attended after the grand unveiling was canceled in the wake of the Ethiopian Airlines tragedy on Sunday.

These photos were taken by a Boeing employee and provided to Sam Chui.

Boeing is building two models of the 777X family: the 400-seat -9, which will be the first to roll out and the longer range -8, which can seat 350 passengers and has a range capability of more than 17,220 km.

SEE Video 777X takes to the sky in Germany

SEE Greenpoint’s luxury 777X interior. 

The driving force behind the 777X is Emirates’ President Sir Tim Clark, whose airline is the lead buyer with an order for 150.

Sir Tim describes the 777X as “an absolute peach”.

Key to his enthusiasm is the aircraft’s economics and greater space — it is 20 percent more efficient per seat than the industry’s long-time benchmark the 777-300ER and its cabin is wider with bigger windows.

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

Other airlines that have ordered the 777X are Lufthansa, Etihad Airways, Qatar Airways, Singapore Airlines, Cathay Pacific Airways, All Nippon Airlines and last week British Airways.

Downunder Qantas and Air New Zealand are also evaluating the 777X along with its arch-rival the A350-1000.

Qantas’s competition, called “Project Sunrise” demands Sydney to London non-stop capability with 300 passengers.

Both Airbus and Boeing say they can meet the airline’s demands or “close to it.”

Qantas plans to add underfloor bunks to the winner of its competition because on ultra-long-haul flights the aircraft will carry virtually no cargo, just passenger’s bags.

 

 

Trump announces US grounding of all Boeing 737 MAX planes

737 MAX

The US has grounded all Boeing 737 MAX aircraft while the Federal Aviation Administration investigates new evidence there may be similarities between two fatal crashes involving the aircraft in less than five months.

President Donald Trump announced the grounding of all US Boeing 737 MAX 8 and 737 MAX 9 aircraft Wednesday US time, saying authorities had received new information from the Ethiopian crash site “and other locations”.

Boeing subsequently announced it had recommended that the global MAX fleet be grounded “out of an abundance of caution and in order to reassure the flying public of the aircraft’s safety”.

The US  is one of the last countries to ground the type in the wake of the fatal crashes of Lion Air Flight JT610 last October and Ethiopian Airlines Flight ET302 on Sunday. All 189 passengers died in the Lion Air crash, while 157 died in the Ethiopian tragedy.

READ: Pilot of fatal Ethiopian flight reported technical difficulties.

Citing the safety of Americans as a paramount concern,  Trump said the grounding meant any plane currently in the air would go to its destination and be grounded until further notice.

“The FAA is prepared to make an announcement very shortly regarding the new information and physical evidence we’ve received from the site and from other locations and through a couple of other complaints,” he said.

“We’ve had a very, very detailed group of people working on the 737-8 and the 737- 9 new airplanes. We’re going to be issuing an emergency order of prohibition to ground all flights of the 737 Max 8 and the 737 Max 9 and planes associated with that line.”

Trump said he had spoken with Transportation Secretary Elaine Chao, acting Federal Aviation Administration head Dan Elwell and Boeing chief executive Dennis Muilenburg and they were in agreement with the action.

“Airlines have been all notified, airlines are agreeing with this,” he said. “The safety of the American people, and all people, is of paramount concern.”

The US president expressed sympathy for the Lion Air crash last October and Sunday’s crash of Ethiopian Flight 302, which klilled157 people.

“Boeing is an incredible company, they are working very, very hard right now,” he said. “Hopefully they’ll come up with the answer but until they do the planes are grounded.”

In its emergency order of prohibition, the FAA said the new information related to the aircraft’s configuration just after takeoff and refined data from satellite-based tracking of the aircraft’s flight path.

Taken together, it said, these indicated some similarities between The Lion Air and Ethiopian accidents “that warrant further investigation of the possibility of a shared cause for the two accidents that needs to be better understood and addressed”.

“The agency made this decision as a result of the data gathering process and new evidence collected at the site and analyzed today,” the FAA said in a statement.

“This evidence, together with newly refined satellite data available to FAA this morning, led to this decision.

“The grounding will remain in effect pending further investigation, including examination of information from the aircraft’s flight data recorders and cockpit voice recorders.

“An FAA team is in Ethiopia assisting the NTSB as parties to the investigation of the Flight 302 accident.”

The FAA  had been under increasing pressure to ground MAX aircraft amid increasing public concern about their safety.

READ: Europe, US at odds over 737 MAX groundings

Its decision came after Canada decided to ground its MAX aircraft, joining other countries around the world ordered operators to take the new 737 variants out of the air.

The FAA had previously argued there was not sufficient evidence to take the action and media reports in the US claimed Boeing’s Muilenburg had lobbied against the grounding.

Boeing said in a statement that it continued to have full confidence in the safety of the 737 MAX.

But it had decided after consultation with the FAA and the US National Transportation Safety Board to recommend to the temporary suspension of the entire global fleet of 371 737 MAX aircraft.

“We are supporting this proactive step out of an abundance of caution, ” Muilenburg said.

“Safety is a core value at Boeing for as long as we have been building airplanes and it always will be. There is no greater priority for the company and our industry.

“We are doing everything we can to understand the cause of the accidents in partnership with the investigators, deploy safety enhancements and help ensure this does not happen again.”

US airlines reacted quickly to comply with the grounding. American Airlines, which has 24 737 MAX aircraft, said it operated 85 flights a day using the plane out of 6,700 daily departures.

It said it regularly monitored its aircraft,  including extensive flight data collection, and this gave it confidence in the safe operation of all its aircraft while contributing to its exemplary safety record.

“American has flown more than 2.5 million passengers — during 46,400 operating hours encompassing nearly 18,000 flights — safely on our MAX 8 fleet since the first one was delivered on Sept. 2017 and began commercial service later that November,” it said.

Southwest Airlines said its 34 MAX aircraft accounted for less than 5 percent of its daily flights.

“While we remain confident in the MX 8 after completing more than 88,000 flight hours accrued over 41,000 flights, we support the actions of the FAA and other regulatory agencies and governments across the globe that have asked for further review of the data — including information from the flight data recorder — related to the recent accident involving the MAX 8,” it said.

Meanwhile, an Ethiopian Airlines spokesman said the crashed plane’s black boxes were heading to Europe to speed up the analysis of the crucial information they contain.

While investigators have yet to determine the cause of the Ethiopian crash, it has been revealed that one of the pilots told air traffic controllers the plane had “flight control problems” while requesting permission to return to Addis Ababa.

The Wall Street Journal reported Ethopia had asked France’s Bureau d’Enquêtes et d’Analyses  for assitance in analyzing the flight recorders.

 

 

 

 

 

 

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Cathay expects to weather tough times after profit turnaround

cathay
Cathay - not out of the rough weather yet. Credit Richard Kreider

Cathay Pacific expects tough times to continue but remains confident in its long-term sustainability after reversing two years of losses to post a 2018 annual profit of $HK2.35 billion ($US300m).

The previously flagged profit turnaround saw Cathay transform a 2017 group loss of $HK1.26 billion in an environment where it faced intense competition from low-cost and Chinese carriers.

The Hong Kong carrier benefited in 2018 from robust freight demand, rising yields and a transformation program aimed at cutting costs and boosting revenue.

READ: Mahathir warns shutting down Malaysia Airlines is an option

Chairman John Slosar said competition remained intense during the year as fuel prices increased and the US dollar strengthened.

“However, our transformation programme remains on track and had a positive impact,’’ he said.

“We focused on finding new sources of revenue, building our network and strengthening the Hong Kong hub, delivering more value to our customers and improving productivity and efficiency.”

Cathay Pacific and Cathay Dragon reported an attributable profit of $HK1.15 billion in the second half of 2018, compared to a loss of $HK904 million in the first half and a loss of $HK1.54 billion in the second half of 2017.

Passenger revenue for 2018 rose just over 10 percent to $HK73.12 billion and yield increased 6.7 percent. The airline said this reflected increased premium class passenger demand, fuel surcharges and revenue management.

It also expanded its footprint during the year, introducing passenger services to 10 destinations while dropping two.

READ: US, Europe at odds over 737 MAX groundings.

A big boost came from the cargo business, which produced an 18.5 percent increase in group revenue to $HK28.32 billion on the back of robust demand.

Looking ahead,  Slosar said the business was expected to remain challenging in 2019 with a strong US dollar and uncertainty due to geopolitical discord and global trade tensions dampening passenger and cargo demand.

“Competition will remain intense, especially in economy class on long haul routes,’’ he said

“Operational constraints will impose additional costs. These factors will affect both the passenger and the cargo business.’’

However, the Cathay chairman remained confident in the ability of the airline’s transformation programme to deliver sustainable long-term performance.

“In 2019, we will continue to reorganize our nine core business processes, to benefit from associated underlying structural initiatives and to build a culture of continuous improvement,’’ he said.

“We will compete hard by extending our route network to destinations not currently served from Hong Kong, by increasing frequencies on our most popular routes and by operating more fuel-efficient aircraft.

“We will focus upon, and continue to invest in, customer service and productivity.”

Europe, US at odds over 737 MAX groundings

Boeing
Photo: Boeing

Boeing’s latest versions of the 737 have been dealt a new blow with the European Union  Aviation Safety Agency banning all flights within, to or from Europe but US authorities have hit back.

The Europeans say say further action may be necessary to ensure the continued airworthiness of the B737 MAX 8 and MAX 9.

EASA justified its decision by saying it was taking every step necessary to ensure the safety of passengers in the wake of the tragedy involving Ethiopian Airlines Flight ET302, which slammed into the ground on Sunday with 157 people on board.

With Gulf airlines also grounding the MAX aircraft, the US and Canada are now the only countries still flying substantial numbers of the planes.

But Boeing said it had full confidence in the planes and there was no basis to issue further guidance at this stage.

And the US Federal Aviation Administration reiterated its view that there was so far no evidence to warrant grounding e planes.

“The FAA continues to review extensively all available data and aggregate safety performance from operators and pilots of the Boeing 737 MAX,” it said.

“Thus far, our review shows no systematic performance issues and provides no basis to order grounding the aircraft.

“Nor have other civil aviation authorities provided data to us that would warrant action.

“In the course of our urgent review of data on the Ethiopian Airlines Flight 302 crash, if any issues affecting the continued airworthiness of the aircraft are identified, the FAA will take immediate and appropriate action.”

EASA published an airworthiness directive (AD) suspending all operations of Boeing 737 MAX 8 and MAX 9 aircraft in Europe.

It also suspended commercial flights performed by third country operators of the planes “into, within or out of the EU”.

The move comes after the number of countries banning the plane expanded Tuesday to include Australia, Singapore, Malaysia, Turkey, Holland, Germany, Iceland, France and the UK.

In its AD, The EU noted that a previous crash involving Lion Air in October had prompted the US Federal Aviation Administration to issue an emergency directive, later replaced by a final rule, requiring certain changes to the aircraft manual regarding runaway horizontal stabilizer trim limitations and procedures.

“ Since that action, another fatal accident occurred,’’ it said.

“ At this early stage of the related investigation, it cannot be excluded that similar causes may have contributed to both events.”

The FAA issued a notice to the international aviation community Tuesday outlining what it and Boeing have been doing in recent months to address some of the issues that arose from the Lion Air crash but EASA said further action may be necessary.

“Based on all available information, EASA considers that further actions may be necessary to ensure the continued airworthiness of the two affected models,’’ it said.

“For the reasons described above, pending the availability of more information, EASA has decided to suspend all flight operations of the two affected models.”

There is still no hard evidence of a link between the incidents in Ethiopia and Indonesia but the industry and media have been spooked by similarities between the two.

Ethiopian airline chief executive Tewolde GebreMariam told CNN’s Richard Quest that the pilots of ET302 told air traffic control they were having flight control problems before the crash.

He said the pilots were aware of the AD issued after the Lion Air crash in October and had additional training.

He also revealed the flight data and cockpit voice recorders were being sent overseas to be read but did not specify where.

GebreMariam said he believed the similarities between the Lion Air and Ethiopian crash were “substantial” given that both incidents featured brand new airplanes of the same model and both flights lasted for just minutes.

The FAA has not banned the plane at this stage and US carriers, which operate 74 of the global fleet of 383 MAX aircraft, are still flying it.

The crisis hit Boeing’s share price again seeing it close down more than 6 percent Tuesday after dropping more than 5 percent on Monday.

It has even attracted the attention of US President Donald Trump who expressed the opinion that planes are becoming too complex to fly.

“Pilots are no longer needed but rather computer scientists from MIT,” he said. “I see all the time in many products. Always seeking to go one unnecessary step further when often old and old and simpler is far better.”

The tweet prompted a phone call from Boeing CEO Dennis Muilenburg who reiterated the company’s position that the MAX aircraft is safe.

Boeing’s statement said safety was its number one priority and it had “full confidence in the safety of the 737 MAX”.

“We understand that regulatory agencies and customers have made decisions that they believe are most appropriate for their home markets.

“We’ll continue to engage with them to ensure they have the information needed to have confidence in operating their fleets.

“The United States Federal Aviation Administration is not mandating any further action at this time, and based on the information currently available, we do not have any basis to issue new guidance to operators.”

The FAA said in a Continued Airworthiness Notification to the International Community issued Monday that it did not have information that would prompt it to draw conclusions or take action but it would do so if it identified a safety issue.

It has been working with Boeing for some time on changes arising from the Lion Air crash and expects to issue an airworthiness directive about flight control enhancements no later than April.

Boeing said the changes included updates to MCAS, pilot displays, operations manuals and crew training.

READ: Ethiopian Flight recorders found as more 737 MAX 8s grounded

But it said it was important to note the FAA was not mandating any further action at this time and the actions in its earlier AD continued to be appropriate.

It said a flight control law known as MCAS that is part of the debate on the 737 MAX was put through flight testing as part of the certification process and does not control the aircraft in normal flight, only abnormal situations.

Its flight crew operations manual already outlined a procedure to safely handle “the unlikely event of erroneous data coming from an angle of attack sensor,” it said.

Mahathir warns shutting down Malaysia Airlines is an option

Malaysia lessors cash

Malaysian Prime Minister Dr Mahathir Mohamad says his government needs to move urgently to decide the future of Malaysia Airlines and has warned that could include shutting down the national flag carrier.

Malaysian was privatized in 2014 after it suffered two fatal crashes in less than five months, the still unsolved loss of Flight MH370 and the downing of MH17 in a missile attack over Ukraine by Russian separatists.

READ: Ethiopian 737 trailing smoke before impact

The tragedies came after a string of losses by the then Malaysia Air System Bhd and it was de-listed after majority investor and state-run company Khazanah Nasional paid 1.4 billion ringgit ($US340m) to take over the shares it did not own.

A recovery plan included cutting about 6000 jobs and the transfer of the airline in 2015 to a new company, Malaysia Airlines Berhad. It was supposed to be profitable by 2019.

However, Khazanah reported a loss of more than 6 billion ringgit last year, 3 billion of which was attributed to the failure of Malaysia Airlines to return to profitability.

It said the government needed to decide the level of support for the airline.

“It is a very serious matter to shut down an airline,’’ Mahathir told reporters at the  Malaysian parliament in Kuala Lumpur Tuesday.

“We will nevertheless be studying and investigating as to whether we should shut it down or we should sell it off or we should refinance it. All these things are open for the government to decide.”

Malaysia recently marked the fifth anniversary of the loss of MH370, which remains aviation’s enduring mystery.

Read: Can a deal be reached to renew the search for MH370.

There is pressure for a renewed search for the missing Boeing 777 and transport Minister Anthony Loke appeared to soften his stance on restarting the operation by declaring he would entertain new proposals if there was new technology.

The fifth anniversary of MH17, also a Boeing 777,  is coming up in July.

 

 

Ethiopian 737 trailing smoke before impact; Aussies suspend planes

Boeing congressional hearings
Photo: Andreas Spaeth

The Ethiopian 737 MAX that crashed Sunday was trailing smoke before impact according to a Reuters report.

Flight 302 was on a flight from the Ethiopian capital to Nairobi with 157 passengers and crew. All perished.

READ: Virgin Australia pilots defend the 737 MAX

Reuters says it interviewed “half a dozen witnesses in the farmland where the plane came down” and they all reported, “smoke billowing out behind, while four of them also described a loud sound.”

“It was a loud rattling sound. Like straining and shaking metal,” said Turn Buzuna, a 26-year-old housewife and farmer who lives about 300 meters (328 yards) from the crash site.

“Everyone says they have never heard that kind of sound from a plane and they are under a flight path,” she told Reuters.

These revelations would appear to rule out any link to the Lion Air crash last October which involved the same type of aircraft.

Many media have linked the two crashes and Boeing appears to be losing the public relations battle, at least for now.

It has a technical team at the crash site as does the US National Transportation Safety Board and the US Federal Aviation Administration.

An important breakthrough has been the discovery of the flight data and cockpit voice recorders which will help shed light on the events that overtook the aircraft.

Aviation authorities in China and Indonesia moved quickly to suspend 737 MAX operations and the jurisdictions temporarily banning the plane widened Tuesday to include Australia and Singapore.

Regulators in both countries suspended 737 MAX operations to and from their airports.

Only two foreign airlines fly the MAX to Australia: Singapore-based SilkAir and Fiji Airways

Australia’s Civil Aviation Safety Authority said the temporary suspension was in the best interests of safety in light of the two recent accidents involving MAX aircraft.

CASA said it was closely monitoring the situation and the suspension would be reviewed as relevant safety information became available from Boeing, the FAA and accident investigators.

“This is a temporary suspension while we wait for more information to review the safety risks of continued operations of the Boeing 737 MAX to and from Australia.” CASA boss Shane Carmody said.

“CASA regrets any inconvenience to passengers but believes it is important to always put safety first.”

Fiji Airways said it had suspended its Boeing 737 MAX operations to and from Australia in compliance with the CASA directive.

The airline has three 737-800s and a 737-700 it can use as replacements as well as widebody A330s.

“While Fiji Airways is confident in the airworthiness of our Boeing 737 MAX 8 aircraft and our robust training programme, we respect CASA’s position,” the airline said..
“As such, we will be changing the aircraft type operating to/from Sydney, Brisbane. Melbourne and Adelaide until further advised. Some schedule changes are likely and affected customers will be notified.”

SilkAir parent Singapore Airlines had temporarily withdrawn its six Max 8’s from service before the CASA announcement, saying the safety of its customers and crew was its highest priority.

“As of this morning, all six aircraft have been grounded in Singapore and will not be returned to service until further notice,” spokesman Karl Schubert said. “Our 17 Boeing 737-800NGs are not affected.

“The withdrawal from service of the 737 MAX 8 fleet will have an impact on some of the airline’s flight schedules. Customers who may be affected by flight disruptions will be contacted for reaccommodation.”

The Australians said they were working with Fiji Airlines to minimize any disruptions and allow it to replace its 737 Max aircraft with other types.

Also Downunder, Virgin Australia took a more cautious approach to its upcoming deliveries of the plane that fueled speculation it may be wavering on its decision to take 30 MAX aircraft starting later this year.

The airline reiterated its commitment to the MAX after the Lion Air crash but his been more circumspect in the wake of the second crash.

It said it was watching the situation closely and monitoring any updates from Boeing and investigating authorities.

“There are currently no Boeing 737 MAX 8 aircraft in our fleet and it is too early for us to make comment on our order,” it said in a statement.

“With our first aircraft delivery not due until November this year, we believe there is sufficient time to consider the outcome of the investigation and make an assessment.

“We will continue to work with Boeing and the relevant authorities as more information becomes available.”

 

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UPDATED: Ethiopian flight recorders found as more 737 MAX 8s grounded

Boeing congressional hearings
Photo: Andreas Spaeth

The flight data and cockpit voice recorders have both been recovered from the crash site of Ethiopian Airlines Flight ET302 as the number of airlines grounding Boeing’s latest version of its workhorse 737 has increased to more than 20.

The deadly crash on Sunday of the Ethiopian plane with 157 people on board was the second involving a new Boeing 737 MAX 8 since October.

The “black boxes” will be crucial in determining what happened to the Ethiopian aircraft and if there is a link to a Lion Air 737 MAX 8 crash shortly after take-off from Jakarta last October.

In what is proving to be a widening crisis for Boeing that saw its share price close down by more than 5 percent Monday,  aviation authorities in China and Indonesia ordered that Boeing 737 MAX aircraft be grounded.

Ethiopian Airlines also ordered its remaining 737 MAX fleet out of the air as a precautionary measure.

Blue chip carrier Singapore Airlines has also temporarily withdrawn six Boeing 737 Max 8’s from service, saying the safety of its customers and crew were its highest priority. The Civil Aviation Authority of Singapore also suspended the operation of MAX aircraft into and out of the city-state.

Other operators to ground the planes include Aeromexico, Royal Air Maroc and Cayman Airways.

But the US Federal Aviation Administration, noting that the investigation has just begun, says it does not have information to draw conclusions or take any action.

The FAA continually assesses and oversees the safety performance of US commercial aircraft and said it would take “immediate and appropriate action” if it identified a safety issue.

It outlined in a Continued Airworthiness Notification to the International Community how it had been monitoring design changes being made to the 737 MAX in the wake of the Lion Air crash.

Boeing has been developing these over the past several months and says they are designed to make the 737 MAX “even safer”.

“Safety is a core value for everyone at Boeing and the safety of our airplanes, our customers’ passengers and their crews is always our top priority,” the company said.

“The 737 MAX is a safe airplane that was designed, built and supported by our skilled employees who approach their work with the utmost integrity.”

US carriers, which operate 74 of the global fleet of 387 737 MAX aircraft,  are continuing to fly the planes but Transportation Secretary Elaine Cho also told reporters that the FAA would “take immediate and appropriate action” if it identified an issue which affected safety.

Other airlines such as Norwegian, LOT Polish Airlines flydubai, Smartwings, S7 Group and Oman Air are also continuing to fly pending further information.

What is known about the Ethiopian crash so far is the pilots reported technical difficulties and asked to return to Addis Ababa during a flight to Nairobi.

READ: Pilot of Fatal Ethiopian flight reported “technical difficulties”.

The plane took off from runway 27R at Bole Airport at 8:38 am local time and contact was lost six minutes later at 8:44 am.

Weather at the time was fine with a visibility of more than 10kms, with a few clouds at 2500ft, according to the Aviation Safety Network.

The Aviation Herald said the last transponder data received from the plane indicated it was flying at just over 9000ft above sea level when contact was lost. Addis Ababa airport is just over 7600ft above sea level.

It noted that photographs of the crash site indicated the plane had been in a deep dive.

Ethiopian fatal crash
Ethiopian’s group chief executive at the crash site. Photo: Ethiopian

Flightradar 24 data shows the 737 MAX 8 was climbing normally with constant speed and altitude lines when suddenly all radar and systems contact is lost. However, it points out that its ADSB coverage is limited in the area.

There is so far no hard evidence that the Ethiopian and Lion Air crashes are linked but the latest tragedy has sparked intense debate about the Boeing 737 MAX 8 and the fact that a two of the new planes have crashed in less than six months.

Questions have also been raised about the disparity in experience between the co-pilot and captain on the Ethiopian aircraft.

The captain had 8000 total flying times, although it is not clear how much of that was on 737s, while the first officer had just 200 hours.

Boeing and the US National Transportation Safety Board have both sent teams to the crash site to work with Ethiopian authorities to try and determine a probable cause.

A preliminary report in the October 28 Lion Air crash pointed to a sequence of events that started with aircraft maintenance and ended with the pilots failing to follow a procedure that could have saved the plane.

READ: Indonesians retrieve data from second Lion Air black box.

A faulty angle of attack sensor caused automated systems on the plane to push down the nose and the flight crew was still fighting this when the plane plunged into the sea with 189 people on board. The sensor measures the pitch of the aircraft and whether the nose is too high.

The crash sparked a debate about a new feature on the plane, the Maneuvering Characteristics Augmentation System (MCAS). MCAS is not engaged when the flaps are extended so some pilots believe it is unlikely to have been a factor in the Ethiopian crash.

This is software known as a flight control law that was added to the MAX to compensate for design changes and help pilots cope with a stall by improving aircraft handling characteristics and decreasing the pitch-up tendency at elevated angles of attack.

It essentially helps push down the nose if the aircraft’s computers detect a high angle of attack but there has been controversy among US pilots about whether Boeing flagged the feature sufficiently.

However, it is disabled if the crew follow runaway stabilizer protocols by flicking two switches and US authorities issued an emergency directive after the crash urging pilots to do this.

The FAA said in Monday’s Continued Airworthiness Notification to the International Community that it continues to monitor pending changes in the MCAS system, angle of attack sensor signal improvements and MCAS maximum command limits.

It is also monitoring changes to training associated with MCAS.

The US regulator expects to issue an airworthiness directive about the flight control system enhancements, which it says would reduce reliance on procedures associated with required pilot memory items, no later than April.

It said it had validated that the aircraft maintenance and functional check instructions for the angle of attack vane replacement were adequate and conducted simulator sessions to verify the operational procedures in its earlier AD.

It had also looked at angle-of-attack vane calibration and reviewed Boeing’s production processes related to the angle-of-attack vane and MCAS.

Boeing said the changes included updates to MCAS, pilot displays, operations manuals and crew training.

“The enhanced flight control law incorporates angle of attack (AOA) inputs, limits stabilizer trim commands in response to an erroneous angle of attack reading, and provides a limit to the stabilizer command in order to retain elevator authority,” it said.

Boeing said it was important to note the FAA was not mandating any further action at this time and the actions in its earlier AD continued to be appropriate.

It said MCAS was put through flight testing as part of the certification process and does not control the aircraft in normal flight, only abnormal situations.

Its flight crew operations manual already outlines a procedure to safely handle “the unlikely event of erroneous data coming from an angle of attack sensor”.

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