NewsWhats happening
Transportation Committee’s findings blame design errors, flawed aircraft certification system for fatal errors
House Democrats issued a sharply worded report revealing new details of how the combination of Boeing Co. BA 4.19% design errors, lax government oversight and lack of transparency by the plane maker and regulators set the stage for two fatal 737 MAX crashes.
The 238-page document, written by the majority staff of the House Transportation Committee, calls into question whether the plane maker or the Federal Aviation Administration has fully incorporated essential safety lessons, despite a global grounding of the MAX fleet since March 2019.
After an 18-month investigation, the report, released Wednesday, concludes that Boeing’s travails stemmed partly from a reluctance to admit mistakes and “point to a company culture that is in serious need of a safety reset.”
“We have learned many hard lessons as a company from the accidents of Lion Air Flight 610 and Ethiopian Flight 302, and from the mistakes we have made,” Boeing said in a written response to the report, referring to the two fatal MAX crashes. The Chicago-based aerospace giant added: “We have been hard at work strengthening our safety culture and rebuilding trust with our customers, regulators, and the flying public.”
The findings released Wednesday also questioned whether pending changes inside the FAA would be sufficient to end what the report describes as fundamentally inadequate government reviews of new aircraft designs. Engineering and management errors on the MAX, according to the report, reflect a flawed approval process in which agency managers often undercut the authority of lower-level FAA engineers, giving industry undue influence over the process.
Excerpt from WSJ
Read the full article
Coronavirus-driven travel slump leads to mounting job losses as plane makers cut output and airlines curb flying
Companies that make parts for Boeing Co. BA and Airbus SE EADSY jets, and provide airlines with everything from engine spares to window shades, are shrinking rapidly in the wake of the pandemic-driven travel downturn.
The Precision Castparts unit of Berkshire Hathaway Inc. BRK.B +0.29% this week became the latest supplier to flag huge job cuts as the maker of aircraft-engine parts said it had shed 10,000 staff—30% of its workforce—since the start of the year.
Warren Buffett’s investment vehicle took a $10 billion write-down on its 2015 acquisition, highlighting how the crisis gripping the airline industry is expected to linger. The world’s two biggest plane makers signaled to suppliers that they plan to lower jet production for several years.
U.S. aerospace manufacturers have already shed more than 100,000 jobs since the start of the year, according to Labor Department data and regulatory filings, with the pandemic adding to existing pressures from the sharply reduced production of the still-grounded Boeing 737 MAX jet. Sector employment had climbed to almost a million at the end of last year and fell to 925,000 by June 30. Job cuts have continued to mount in recent weeks.
The biggest supplier on the MAX program, Spirit AeroSystems Holdings Inc., is cutting 8,000 jobs, around 40% of its commercial aerospace workforce. General Electric Co. is shedding 13,000 from its aviation unit, and other big suppliers such as Raytheon Technologies Corp., Howmet Aerospace Inc. and France’s Safran SA have disclosed cuts in recent weeks.
“We have received more production schedule changes this year than I think we’ve seen in the last five years,” said Spirit Chief Financial Officer Mark Suchinski on a recent earnings call.
Excerpt from WSJ
Read the full article
Travel slump leaves aerospace giant looking to cut more jobs than previously planned
Boeing BA Co. plans more job cuts in response to a pandemic-driven drop in jetliner demand it expects to continue for at least three years.
The aerospace giant told its employees in a memo late Monday that it is adding a second round of buyout offers, a move that would further reduce its workforce by an unspecified number beyond the cut of 19,000 already announced in July.
The company has increased the target set in April of cutting overall staff numbers by around 10%, according to the memo to staff from Chief Executive David Calhoun.
Further details are expected on Aug. 24, with the takeup of the buyout offer by staff reducing the number of compulsory job cuts required.
Excerpt from WSJ
Read the full article
Some small cities will be without air service altogether in October when American Airlines Group Inc. AAL -1.94% cuts flights, as a fight to extend additional federal funds has been mired in a broader stalemate over pandemic relief.
American said it would stop flights to 15 cities once a requirement that the airline maintain the routes in exchange for federal aid expires. American struck the small cities from its schedule from Oct. 7 through Nov. 3, describing the move as the first step in re-evaluating its network in the coming weeks.
American’s cuts will affect airports in cities such as Dubuque, Iowa, Joplin, Mo., New Haven, Conn., and Stillwater, Okla., where the airline operates regional flights that funnel passengers into its bigger hubs. Several of the airports where American is cutting back aren’t served by any other airline.
Excerpt from WSJ
Read the full article
A Northern California startup has devised a novel strategy to create planes that can fly themselves, by first testing a new generation of automated flight controls during conventional cargo flights flown by pilots.
Starting with videos of a demonstration flight slated for release Thursday, San Francisco-based Xwing Inc. aims to jump-start such technology by showing its reliability on current turboprops already flying established routes in everyday conditions. Relying on a handful of specially outfitted Cessna Grand Caravans—workhorses of short-haul, single-pilot cargo operations nationwide—the company seeks to gather data about navigation, automated emergency maneuvers and autonomous landing features ultimately intended for commercial use without anyone in the cockpit.
Proponents say U.S. authorities could authorize selected flights without pilots over stretches of water or uninhabited regions as soon as the first half of 2022, potentially years before the Federal Aviation Administration certifies all-new, comparably sized autonomous designs being developed by competitors. In addition to the person flying the plane, pilots on the ground are slated to monitor trips and communicate with air-traffic controllers, at least initially. The single-engine planes carry some 4,000 pounds of cargo, and Xwing anticipates cruising at altitudes under 10,000 feet and at 230 mph—well below most airline operations.
Excerpt from WSJ
Read the full article
Airlines hunker down for fall with fewer flights and tougher passenger protocols as Covid-19 cases stall demand
American Airlines AAL -3.74% Group Inc. and Southwest Airlines Co. LUV -2.30% said they were tempering expectations for an air-travel recovery, as mounting coronavirus cases have driven down bookings by as much as 80% in some parts of the U.S.
American, which has been flying twice as much as some of its rivals as part of a plan to capture summer demand, said Thursday that it will pare some flying. Southwest, which also maintained more flying this summer than United Airlines Holdings Inc. UAL -3.59% and Delta Air Lines Inc., DAL -2.06% said cancellations are picking up and demand looks weaker heading into fall.
Executives at American said bookings have started to slide and business travel, which usually picks up after Labor Day, shows no signs of resuming. “In short, the crisis continues,” Chief Executive Doug Parker said on a call to discuss results for the latest quarter.
Excerpt from WSJ
Read the full article
Airlines are putting off jet deliveries amid coronavirus, depriving manufacturers and their suppliers of cash
Boeing Co. BA -4.20% and Airbus SE EADSY 1.03% are making planes that airlines aren’t collecting, straining their finances as the coronavirus pandemic wreaks havoc on travel and the aerospace industry.
Airlines in many cases say they don’t want the aircraft for now, because they are unable to fill them profitably during a historic plunge in demand for flying. Travel restrictions are also hindering employees of some airlines from getting to the U.S. and Europe to pick up planes from factories.
The result: finished airplanes with nowhere to fly, and less cash for Boeing, Airbus and their suppliers as they slash production and payrolls. Customers generally pay more than half the purchase price when they receive aircraft. Boeing delivered 20 aircraft in the second quarter, down from 90 in that period last year. It was the lowest quarterly total since 1963, the early part of the jet age, according to an analysis of Boeing delivery data.
Excerpt from WSJ
Read the full article
Eight airline and hotel industry veterans make their predictions about what will change about safety and pricing and whether business travelers will ever return to the road
When will we be traveling again in large numbers? And what will travel be like in the future?
The first question depends on a medical solution to the coronavirus pandemic. The second is best answered with experience.
I asked eight travel pioneers for predictions on what the future of travel will be—current and former chairmen and chief executives of travel companies and a former secretary of transportation. All have experience from past crises and recoveries.
Most foresee a lasting decline in business travel, but think leisure travel will bounce back robustly. That means airlines and hotels will have to change their business plans, being unable to rely as much on rich revenue from corporate travelers. Expect higher ticket prices and room rates for vacationers to cover the costs with fewer high-dollar customers to subsidize bargain-seekers.
Excerpt from WSJ
Read the full article