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Boeing is in big trouble
  + stars: | 2024-03-12 | by ( David Goldman | ) edition.cnn.com   time to read: +4 min
LATAM called it a “technical event.” Boeing said it’s working to gather more information. Between lawsuits, potential fines and lost business, Boeing could lose billions more dollars from the blowout. In February, pilots on a United Airlines 737 Max reported that the flight controls jammed as the plane landed in Newark. The FAA is allowing the planes to continue flying and Boeing said the problem does not pose an immediate safety risk. And the FAA said Boeing’s safety and quality problems extend beyond its inability to produce paperwork.
Persons: CNN —, LATAM, it’s, Max, Mike Whitaker, ” Whitaker, Whitaker, , ” Boeing’s, It’s, CNN’s Colin McCullough, Greg Wallace Organizations: CNN, Boeing, Alaska Airlines, United Airlines, The National Transportation Safety, Federal Aviation Administration, FAA, NTSB Locations: Australia, New Zealand, Newark
Southwest Airlines said Tuesday that it will have to trim its capacity plans and reevaluate its financial forecasts for the year, citing delivery delays from Boeing , its sole supplier of airplanes. The Dallas-based airline said Boeing informed Southwest's leaders that it should expect 46 Boeing 737 Max 8 planes this year, down from 58. Southwest had expected Boeing to deliver 79 Max planes, including some of the smallest model, the Max 7, which hasn't yet won certification from the Federal Aviation Administration. Because of the delays, Southwest said in a filing that it is "reevaluating all prior full year 2024 guidance, including the expectation for capital spending." Last week, United told staff that it would have to pause pilot hiring this spring because of late-arriving aircraft from Boeing, CNBC reported.
Persons: Max, , United, Boeing didn't Organizations: Southwest Airlines, Boeing, Southwest's, Max, Southwest, Federal Aviation Administration, JPMorgan, Alaska Airlines, CNBC Locations: Dallas
But the company also had three canceled orders in January, giving it zero net orders for that month, the worst month for sales in years. Rebound from worst month since pandemicJanuary had been the worst month for sales for Boeing since airlines were struggling with massive losses during the pandemic. The last time Boeing had between one and three gross orders was in June, 2020, when it had only one jet order. The company sold 10 of the troubled 737 Max jets in February, all to unidentified customers. Southwest had planned to also take delivery of a total of 79 737 Max jets, but it no longer expects to get any of the 737 Max 7 jets it had hoped to get this year.
Persons: That’s, Max Organizations: New, New York CNN, Boeing, Alaska Airlines, Alaska Air, Southwest, Royal Brunei Airlines, United Airlines, Ryanair, Sun Express, , China Southern, FAA, Max, Federal Aviation Administration Locations: New York, Alaska, Singapore, United, Southwest, Air India, flydubai, Korean, – Air China, China Southern, Xiamen, Shandong, Donghai, China
An aerial photo shows Boeing 737 Max airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, on March 21, 2019. Boeing 's latest Max crisis is forcing some of its biggest customers to rethink their growth plans this year — and possibly beyond, several airline CEOs said Tuesday. "Boeing needs to become a better company and the deliveries will follow that," Southwest Airlines CEO Bob Jordan said at a JPMorgan industry conference Tuesday. In January, Kirby said the airline would build a fleet plan without the Max 10 because of the delays. On Friday, United told staff that it would have to pause pilot hiring this spring because new Boeing planes are arriving late, CNBC reported.
Persons: Bob Jordan, Scott Kirby, Max, Kirby, United, Dave Calhoun, Stan Deal, Deal Organizations: Boeing, Max, Boeing Factory, Southwest Airlines, Southwest, JPMorgan, Alaska Airlines, Federal Aviation Administration, Department, United Airlines, FAA, CNBC, Transportation Safety Locations: Renton , Washington, Washington
Mechanics at a Boeing supplier used liquid soap as a lubricant to fit a 737 Max door seal, per NYT. The instance was mentioned in a document discussing FAA audits of Boeing and its supplier, per NYT. This particular supplier, Spirit AeroSystems, is in charge of building the 737 Max's fuselage. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementThe Federal Aviation Administration auditors saw mechanics for a Boeing supplier using liquid Dawn soap as a lubricant for fitting a door seal, The New York Times reported.
Persons: , Mark Walker, Max, Dave Calhoun Organizations: Boeing, Service, Aviation Administration, New York Times, FAA, The Times, Alaska Airlines, Times, Business, Spirit
An Alaska airlines Boeing 737 is taking off from Los Angeles International AirPort (LAX) in Los Angeles, California, on March 6, 2024. U.S. air safety regulators found "dozens of problems" at facilities owned by Boeing and one of its key suppliers after a six-week audit of the production of the 737 Max jet, according to The New York Times. The Federal Aviation Administration started the probe after a door panel blew off a 737 Max 9 flight on Alaska Airlines in early January, an incident that has attracted intense scrutiny of Boeing's quality-control practices. FAA auditors found that out of 89 product audits that were conducted, Boeing passed 56 tests and failed 33 of them, according to the report. During the six-week audit, the FAA also conducted 13 product audits that focused on Spirit AeroSystems, which makes fuselages for the Boeing 737 Max — of those, only six audits resulting in passing grades, and seven failed, the NYT said.
Persons: Max — Organizations: Boeing, Los Angeles International AirPort, The New York Times, Federal Aviation Administration, Max, Alaska Airlines, Times, FAA Locations: Alaska, Los Angeles , California
The incident aboard LATAM Airlines flight 800 from Sydney to Auckland is the latest to hit troubled aircraft manufacturer Boeing, which has been rocked by years of quality and safety issues. After landing in Auckland, Jokat said the pilot checked on the passengers and explained he had temporarily lost control of the jet. “I immediately engaged with him and said, ‘What was that?’ And he openly admitted, he said, ‘I lost control of the plane. “He said for that brief moment he couldn’t control anything and that’s when the plane did what it did. Meanwhile, the Federal Aviation Administration in February flagged safety issues with engine anti-ice systems on the 737 Max and larger 787 Dreamliner.
Persons: Brian Jokat, ” “, I’m, , CNN’s Erin Burnett, Jokat, , ” Jokat, , LATAM, Dean Purcell, Max, Mike Whitaker, Whitaker Organizations: CNN, Boeing, LATAM Airlines, CNN Tuesday, Alaska Airlines, Federal Aviation Administration, FAA Locations: Australia, New Zealand, Sydney, Auckland
The DoJ opened a criminal investigation into the Boeing 737 blowout, The Wall Street Journal reported. AdvertisementThe Department of Justice has reportedly opened a criminal probe into the Boeing jetliner blowout that left a hole in the side of an Alaska Airlines plane in January. Citing unnamed sources, The Wall Street Journal reported on Saturday that DoJ investigators had contacted passengers and crew members who were on the Boeing 737 Max 9. Alaska Airlines said in a statement: "In an event like this, it's normal for the DoJ to be conducting an investigation. However, the NTSB is still unsure about who removed and replaced the door panel, Homendy said Wednesday.
Persons: , Ed Wray, Jennifer Homendy, Homendy Organizations: DoJ, Boeing, Street Journal, Alaska Airlines, Service, of Justice, Street, Business Insider, Lion Air, Seattle Times, National Transportation Safety, NTSB, Spirit, Aviation Administration, FAA Locations: Portland , Oregon
With Boeing facing multiple government investigations, the company needs to make “a serious transformation” around its safety and manufacturing quality, Transportation Secretary Pete Buttigieg said Monday. That followed the company's admission that it couldn't find records that the National Transportation Safety Board sought for work done on the panel at a Boeing factory. “We will continue to cooperate fully and transparently with all government investigations and audits, as we take comprehensive action to improve safety and quality at Boeing," the company said. Alaska Airlines said it is cooperating with the Justice Department investigation. She told a Senate committee that Boeing had repeatedly rebuffed her agency's attempts to get information ever since the blowout.
Persons: Pete Buttigieg, Buttigieg, Max jetliner, ” Buttigieg, , Jennifer Homendy Organizations: Boeing, Transportation, Street Journal, Department of Justice, Alaska Airlines, National Transportation Safety, Federal Aviation Administration, DOJ, NTSB, Justice Department, Alaska, FAA, Max Locations: midlfight, Buttigieg's, Seattle, Arlington , Virginia
Biden wants to hire 2,000 air traffic controllers in 2025
  + stars: | 2024-03-11 | by ( ) www.cnbc.com   time to read: 1 min
US President Joe Biden delivers remarks at the National League of Cities Congressional City Conference in Washington, DC, on March 11, 2024. The Biden administration said Monday it is seeking funding from Congress to hire another 2,000 air traffic controllers in the 2025 budget year after a series of near-miss incidents. The Federal Aviation Administration is facing a persistent shortage of controllers that has caused flight delays and forced the FAA to extend cuts to minimum flight requirements at congested New York City-area airports through October 2024. At many facilities, controllers are working mandatory overtime and six-day work weeks to cover staffing shortages. The FAA wants $43 million to accelerate the hiring and training controllers.
Persons: Joe Biden, Biden Organizations: National League of Cities Congressional City Conference, Federal Aviation Administration, FAA Locations: Washington ,, New York City
A six-week audit by the Federal Aviation Administration of Boeing’s production of the 737 Max jet found dozens of problems throughout the manufacturing process at the plane maker and one of its key suppliers, according to a slide presentation reviewed by The New York Times. The air-safety regulator initiated the examination after a door panel blew off a 737 Max 9 during an Alaska Airlines flight in early January. The presentation reviewed by The Times, though highly technical, offers a more detailed picture of what the audit turned up. conducted 89 product audits, a type of review that looks at aspects of the production process. The plane maker passed 56 of the audits and failed 33 of them, with a total of 97 instances of alleged noncompliance, according to the presentation.
Persons: AeroSystems Organizations: Federal Aviation Administration, The New York Times, Alaska Airlines, Boeing, The Times
Even though the same jet model had crashed soon after taking off from Indonesia less than six months earlier, aviation authorities around the world had allowed the 737 Max to keep flying with passengers. A third incidentThis year, on January 5, a part of a 737 Max 9 flown by Alaska Airlines blew out, leaving a gaping hole in the side of the plane. Boeing’s production problems went beyond the design flaw that led to the crashes. “Within days of the first crash, Boeing knew there was a design defect,” Robert Clifford, one of the plaintiff attorneys in the case, told CNN. Last month, Boeing removed executive Ed Clark, the head of its 737 Max passenger jet program.
Persons: New York CNN — Michael Stumo’s, Samya Rose Stumo, , , ” Michael Stumo, Michael Stumo Samya Rose, Max, Michael Stumo, We’d, ” Stumo, ” Zipporah, Joseph, ‘ something’s, ’ ” Joseph Kuria, Olivia Kuria, “ It’s, haven’t, Kruia, ” Kuria, ” Robert Clifford, people’s, Olivier Douliery, Dave Calhoun, Ed Clark, Stephen Brashear, Eduardo Soteras, David Calhoun, Mike Delaney, ” Joseph, Zipporah, Dennis Muilenburg, Calhoun, Stumo, “ I’m, Kuria, there’s Organizations: New, New York CNN, Boeing, Max, CNN, Copenhagen School of Public Health, Ethiopian, Alaska Airlines, National Transportation Safety Board, Alaska, Federal Aviation Administration, Transportation Safety Board, NTSB, Alaska Airlines Flight, Alaska Air, , US Justice Department, FAA, Justice Department, Getty, Ethiopian Airlines, Lion Air, Airline Pilots, Association of Ethiopia Locations: New York, Addis Ababa, Ethiopia, Kenya, Indonesia, Alaska, Portland , Oregon, Arlington , Virginia, AFP, , Renton , Washington, Washington
CNN —A United Airlines flight from San Francisco to Mexico City was diverted to Los Angeles Friday after an issue with the plane’s hydraulic system, the airline said. It was the carrier’s fourth emergency in a week, including a tire falling off one flight and an engine catching fire on another. The Airbus 320, carrying 105 passengers and five crew members, landed safely and everyone disembarked at a gate, according to United and the Federal Aviation Administration. Customers were flown to Mexico City International Airport on a different aircraft, according to the airline. The Airbus 320 is equipped with three hydraulic systems for “redundancy purposes” and preliminary information showed the issue affected only one of those systems, according to United.
Persons: CNN Friday’s, ” United, , CNN’s Ray Sanchez Organizations: CNN, United Airlines, Los Angeles, Airbus, Federal Aviation Administration, Customers, Mexico City International, FAA, . United Airlines, NTSB Locations: San Francisco, Mexico City, Los, Mexico
CNN —The Federal Aviation Administration is investigating a United Airlines flight that lost a tire while taking off from San Francisco International Airport, damaging several cars in a parking lot before the plane safely landed at Los Angeles International Airport, the agency said. United Airlines confirmed the plane lost one tire after takeoff. United flight 35, with 249 passengers and crew onboard, was diverted to Los Angeles and landed shortly after 1:20 p.m., the airline told CNN. A United Airlines flight loses a tire while taking off from San Francisco International Airport. The San Francisco International Airport’s runway was briefly closed to clear debris but has since reopened, and there was no further impact to airport operations, Yakel said.
Persons: San Francisco airport’s, Doug Yakel, Yakel, Salvador Gonzalez, LiveATC.net, CNN’s Sharif Paget Organizations: CNN, Federal Aviation Administration, United Airlines, San Francisco International Airport, Los Angeles International Airport, San, American Airlines, Boeing, San Francisco International Locations: Osaka, Japan, Los Angeles, Cali
United Airlines will pause pilot hiring this spring because of Boeing delivery delays, the latest effect of the plane maker's problems on one of its biggest customers. New hire classes will be paused in May and June and will likely resume in July, Marc Champion, vice president of flight operations, and Kirk Limacher, vice president of flight ops planning and development, told staff Thursday in a memo, which was seen by CNBC. "We wanted to let you know that United will slow the pace of pilot hires this year due to continued new aircraft certification and manufacturing delays at Boeing," they wrote. Bolts appeared to be missing on the plane when it left Boeing's factory, a preliminary investigation found. United's CEO, Scott Kirby, in January said the carrier is making a fleet plan without the Max 10.
Persons: Marc Champion, Kirk Limacher, Boeing Max, Bolts, Max, Scott Kirby, Limacher Organizations: Boeing, CNBC, Alaska Airlines, Federal Aviation Administration
CNN —Boeing has not turned over important records to investigators probing the door plug blowout on a 737 Max earlier this year, investigators say. She testified that because of Boeing’s actions, NTSB investigators do not know who on the Boeing assembly line removed and reinstalled the door plug that – months later while the plane was in service carrying passengers – blew out. Homendy said that Boeing has not fully cooperated with the NTSB Board's investigation into Alaska Airlines Flight 1282 door plug incident. The plane flew about 150 commercial flights before the door plug flew off the plane mid-flight on January 5, just over two months ago. NTSB investigators have made multiple visits to Boeing facilities and created a special team to handle requesting and processing documents from Boeing and its key contractor, Spirit AeroSystems.
Persons: Jennifer Homendy, Homendy, Kevin Dietsch, ” Homendy Organizations: CNN, Boeing, Transportation, Commerce, U.S . National Transportation Safety Board, Senate Commerce, Science, Russell Senate, NTSB, Alaska Airlines, Getty, Federal Aviation Administration Locations: Renton, Washington ,
Alef Aeronautics said it's received over 2,850 reservations so far for its $300,000 flying car. The Silicon Valley startup is backed by Elon Musk's SpaceX. A $300,000 flying car known as the Model A is in the works at Alef Aeronautics, and the SpaceX-backed Silicon Valley startup said it's gotten over 2,850 preorders. Alef Aeronautics is set to begin deliveries in Q4 of 2025. The Model A was the first flying car to receive approval for test flights from the Federal Aviation Administration in July.
Persons: it's, Elon Musk's, , Jim Dukhovny, Alef Organizations: Aeronautics, Elon Musk's SpaceX, Service, Alef Aeronautics, SpaceX, CNBC, preorder, Federal Aviation Administration Locations: preorders
Space X backed flying car firm correction
  + stars: | 2024-03-04 | by ( ) www.cnbc.com   time to read: 1 min
Last year, the Federal Aviation Administration granted Alef a special airworthiness certificate. An earlier version misstated the name of the agency,
Organizations: Federal Aviation Administration
The Federal Aviation Administration said Monday its audit of 737 Max manufacturing at airplane-maker Boeing and its key supplier turned up “multiple instances” of them failing to make sure manufacturing met quality standards. The FAA said it gave a summary of findings from its six-week audit to Boeing and supplier Spirit AeroSystems, but it did not make the summary public. Spirit spokesman Joe Buccino said the company welcomed the FAA audit and will review the findings. “We are in communication with Boeing and the FAA on appropriate corrective actions,” he said. Photos You Should See View All 60 ImagesSince then, Boeing replaced the executive in charge of the 737 Max program.
Persons: Max, Joe Buccino, , David Calhoun Organizations: Federal Aviation Administration, Boeing, FAA, Pilots, Alaska Airlines Locations: Oregon
“The FAA identified non-compliance issues in Boeing’s manufacturing process control, parts handling and storage, and product control,” the FAA said in a press release, but did not immediately provide further details. The FAA said the findings of both this audit and the separate report should be part of Boeing’s quality improvement plan. But in January Boeing CEO David Calhoun conceded Boeing needed to improve its quality controls. Without giving details, the FAA said it found multiple instances where both companies allegedly failed to comply with manufacturing quality control requirements. The agency is not the only government body looking into Boeing’s quality issues.
Persons: David Calhoun, , Calhoun, , Mike Whitaker, Jennifer Homendy Organizations: Washington DC CNN, Federal Aviation Administration, Alaska Airlines ’ Boeing, FAA, Boeing, Spirit, Max, National Transportation Safety, Alaska Air, NTSB, Justice Department, Alaska, Senate Locations: Renton , Washington
The Federal Aviation Administration said on Monday that a six-week audit of Boeing and one of it key suppliers, Spirit AeroSystems, found “multiple instances” in which the companies failed to comply with quality-control requirements. As part of the audit, which looked at production of the Boeing 737 Max, the F.A.A. said that it had “identified noncompliance issues in Boeing’s manufacturing process control, parts handling and storage, and product control.” The regulator did not publicly release further details. initiated the audit after a door panel came off a 737 Max 9 jet while at about 16,000 feet in early January, raising new questions about quality-control practices at Boeing and Spirit, which makes the fuselage, or body, of the 737 Max. A spokesman for Spirit, Joe Buccino, said the company was reviewing the findings and was “in communication with Boeing and the F.A.A.
Persons: AeroSystems, Max, Joe Buccino, Organizations: Federal Aviation Administration, Boeing, Max
But the pilot soon told air traffic control that they wouldn’t make it to the tarmac. Audio from the website LiveATC.net captured the communication between the pilot and the air traffic controller before the fatal crash. The aircraft exploded into flames upon impact, Nashville Fire Department spokesperson Kendra Loney said. Police have yet to publicly identify the victims and are still working to determine where the plane originated from. Approximate location of a plane crash along Interstate 40 East on Monday night.
Persons: John C, Don Aaron, LiveATC.net, John, Aaron, ” Aaron, Kendra Loney, ” Loney, Rebekah Hammonds, CNN’s Amanda Jackson, Caroll Alvarado Organizations: CNN, Tune, Metro Nashville Police, John Tune, Costco, Nashville Fire, Police, National Transportation Safety, Federal Aviation Administration, Tennessee Department of Transportation
Boeing is delaying production expansion of its 737 planes, according to a report. An Alaska Airlines flight lost a chunk of its fuselage section in flight in January. AdvertisementBoeing is holding off on a planned expansion of production for its 737 Max planes after an Alaska Airlines flight lost a chunk of the plane while airborne in January. But the company has delayed those plans in the wake of the Alaska Airlines incident earlier this year. AdvertisementThe Federal Aviation Administration temporarily grounded 171 Boeing 737 Max 9 planes on January 6 following the incident.
Persons: , Jennifer Homendy Organizations: Boeing, Alaska Airlines, FAA, Service, Reuters, Transportation Safety, Aviation Administration, Max Locations: Alaska, Portland , Oregon, Ontario , California
Spirit Aerosystems had a market capitalization of $3.3 billion as of Thursday's close. "We do not comment on market speculation," a spokesperson for Spirit Aerosystems told CNBC. Boeing in 2005 spun off operations in Kansas and Oklahoma that became the present-day Spirit Aerosystems. It comes less than two months after a section of a Boeing 737 Max 9 plane blew out during an Alaska Airlines flight. It was the latest and most serious in a host of flaws on the Boeing 737 Max, Boeing's best-selling jet.
Persons: Aerosystems, Spirit Aerosystems, Boeing's, Max Organizations: Spirit AeroSystems Holdings Inc, Boeing, Spirit, CNBC, Airbus, Wall Street, Max, Alaska Airlines, Federal Aviation Administration, National Transportation Safety Board Locations: Wichita , Kansas, U.S, Kansas, Oklahoma, Boeing's Renton , Washington
Read previewBoeing could face criminal prosecution after the Justice Department reviews whether the Alaska Airlines blowout breaches the terms of a key agreement, Bloomberg reported, citing a person familiar with the matter. This story is available exclusively to Business Insider subscribers. The deferred prosecution agreement expired two days after the Alaska Airlines blowout, the Bloomberg report said. AdvertisementIf the DoJ finds that the blowout breaches the settlement, Boeing could face criminal liability, the source told Bloomberg. The DoJ did not immediately respond to a request for comment from Business Insider, which was sent outside US working hours.
Persons: , Max, David Burns Organizations: Service, Department, Alaska Airlines, Bloomberg, Business, Boeing, Federal Aviation Administration, DoJ, MCAS, FAA, National Transportation Safety
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