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United Airways buys 25 extra Boeing 737 Max jets in vote of confidence

A United Airlines Boeing 737 Max 9 aircraft lands at San Francisco International Airport.

Justin Sullivan | Getty Images

United Airlines is buying 25 additional Boeing 737 Max planes and taking other orders ahead of schedule in preparation for a rebound in travel demand, the airline said on Monday.

“As we plan for the future and the return of demand, we have looked for ways to best position our fleet for recreation and to be able to best capitalize on people’s desire to travel,” said Andrew Nocella. Chief Commercial by United Officer said in a note to staff.

In addition to the 25 Boeing 737 Max planes slated for delivery in 2023, the Chicago-based airline has increased deliveries of 40 more Max jets by 2022 and five more by 2023. In total, United has firm commitments for 188 maxes, according to a securities filing on Monday.

The vote of confidence in the jetliner comes just months after the Federal Aviation Administration lifted its aircraft ban after two fatal crashes. United, which had 14 Boeing Max 9 jets in its fleet at the time of landing in March 2019, received the planes again in December from Boeing, the first airline to do so. Commercial flights were launched with these jets last month.

United lost more than $ 7 billion last year as it, like other airlines, struggled with the Covid-19 pandemic. The demand for travel is likely to remain weak in the first half of the year. United said in the filing that it expects its capacity to decrease by at least 51% in the first quarter from the same quarter of 2019.

But the airline is now preparing for a recovery as vaccine distribution increases.

“And as the end of the pandemic draws nearer and vaccines continue to expand, today’s fleet announcement will help us meet expected demand in 2022 and 2023 and enable us to offer our employees more opportunities in the future . ” “wrote Nocella.

Boeing stock rose 5.8% on Monday to close at $ 224.39 while United stock rose 1.2% to $ 53.31 during a broad stock market rally.

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United Provides to Its Orders for Boeing 737 Max Planes

United Airlines announced Monday that the order for the Boeing 737 Max has been expanded to include 25 aircraft, bringing the total to 180 for the coming years, and that the delivery time has been cut to position itself for the expected recovery in travel.

The expanded contract is the latest vote of confidence in the aircraft, which has only just started flying again after two crashes left a global ground for nearly two years. This is also good news for Boeing, which is working to get out of the Max Crisis and, more recently, engine problems aboard some of its 777 aircraft.

“With these new aircraft, we can become more competitive,” said Andrew Nocella, United’s chief commercial officer. “It’s the right plane at the right time.”

United plans to deploy the jet across North America and Hawaii, replacing smaller aircraft when demand returns, Nocella said. It’s also more economical than its predecessor, a major asset for the airline as it seeks to reduce its carbon footprint. And the plane will help United resume their strategy of strengthening connections at mid-country hub airports in Houston, Chicago and Denver, he said.

“This will allow us to get back on track when we get out of the pandemic,” Nocella said.

The industry is preparing for a travel rebound once coronavirus vaccinations are widespread and the pandemic is tamed. The beleaguered 737 Max has been updated and is ready to fly again after a total of 346 people were killed in crashes in Indonesia in October 2018 and Ethiopia in March 2019.

Updated

March 1, 2021, 12:38 p.m. ET

After the second accident, the Max, a star of the Boeing fleet, was scrutinized by lawmakers, regulators and the news media around the world. In November, the Federal Aviation Administration became the first global regulator to lift a ban on the jet. Boeing and the airlines using the Max had to install software updates, change wiring, and make other changes to the aircraft before they could fly again. Regulatory agencies in other countries followed, and the Max has already performed thousands of flights.

United, which has 30 Max aircraft in its fleet, only put the aircraft back into service a few weeks ago. The airline expects 24 this year, followed by 40 next year and 54 in 2023.

The Max has a list price of more than $ 120 million, but it often sells for a cheaper price, especially on large orders. Industry analysts say airlines have the leverage to bring that price down further as slowing travel has eased the pressure to build fleets. The manufacturer has shipped more than 400 Max jets to customers since the aircraft first flew paying passengers in 2017. Almost 4,000 orders were still pending.

Unlike its competitors, United has not removed any mass aircraft from its fleet throughout the pandemic. This is part of a strategy aimed at providing maximum flexibility in restoring the trip, Nocella said. With another round of federal payroll for the industry looking likely, United will also be able to keep much of its workforce through September. Two previous rounds of federal aid have largely helped airlines avoid vacation days and layoffs.

While Monday’s order shows United is gearing up for a rebound from the trip, a significant rebound is likely still a long way off. Mr Nocella said United hopes to reach a “tipping point” by the end of the year where the tourist recovery will accelerate rapidly. At the moment, United and its peers continue to lose money every day, even as they take care of what few travelers have left.

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FAA orders inspections of Boeing 777s after engine failure on United flight

Residents take photos of debris that fell from the engine of a United Airlines aircraft in the Broomfield neighborhood outside of Denver, Colorado on February 20, 2021. A United Airlines flight suffered a fiery engine failure shortly after taking off from Denver on Feb. 20 en route to Hawaii, where massive debris is falling on a residential area before a safe emergency landing, officials said.

Chet Strange | AFP | Getty Images

United Airlines announced on Sunday that 24 of its Boeing 777s will be temporarily decommissioned after one of the aircraft suffered an engine failure over the weekend.

The head of the Federal Aviation Administration announced on Sunday that the agency would order the inspection of some Boeing 777 jetliners powered by the same Pratt and Whitney engine, the PW4000.

The Japanese aviation authority has ordered airlines to suspend flights from aircraft with this type of engine until further notice, according to the FAA. United is the only US airline with this type of engine in its fleet, the agency added.

United Flight 328, a Boeing 777-200 bound for Honolulu, landed at Denver International Airport shortly after take-off on Saturday afternoon after the right engine failed.

No one was injured in the flight, which carried 229 passengers and 10 crew members, but debris, including part of the engine cover, fell in nearby Broomfield, Colorado.

Federal investigators said their initial investigation found two of the correct motor’s fan blades were broken.

The National Transportation Safety Board said one of the engine’s fan blades broke near its root, while another broke halfway. Other engine fan blades were also damaged, the NTSB said in an initial report late Sunday.

“We checked all available safety data after yesterday’s incident. Based on the initial information, we concluded that the inspection interval for the hollow fan blades, which applies only to this engine model, which is only used in Boeing 777 aircraft, has been extended should be, “FAA Administrator Steve Dickson said in a statement.

United has another 28 of these aircraft in its fleet that are currently in storage. Airlines parked or retired dozens of planes after demand plummeted due to the Covid-19 pandemic.

Engine makers Pratt and Whitney, a unit of Raytheon Technologies, did not immediately respond to a request for comment.

Similar incidents

Such incidents are rare but have occurred in recent years.

In February 2018, another United Airlines 777-200, equipped with Pratt and Whitney PW4077 engines, suffered an engine failure over the Pacific Ocean near Hawaii after a fan blade broke. This comes from an NTSB report published in June. The flight made it safely to Honolulu with 364 passengers and 10 crew members.

In April 2018, a passenger was killed when a fan blade broke off the engine of a Southwest Airlines Boeing 737, broke a window and briefly sucked the passenger outside.

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F.A.A. Orders Inspections on Boeing 777 Jets After Engine Failure

The chief of the Federal Aviation Administration said Sunday that one day after a dramatic engine failure over Colorado, he is calling for “immediate or intensified inspections” of all Boeing 777 aircraft with a particular Pratt & Whitney engine model.

Also on Sunday, United Airlines, the only American airline affected by the FAA regulation, announced that they are currently temporarily putting on the ground the 24 Boeing 777 aircraft currently in service in their Pratt & Whitney-powered fleet will.

The FAA’s announcement came shortly after its counterpart in Japan ordered the airlines there not to fly the aircraft, which affected 32 jets operated by All Nippon Airways and Japan Airways. Both Japanese and American orders are only for Boeing 777s with Pratt & Whitney PW4000 engines.

“We reviewed all available security data following yesterday’s incident,” FAA Administrator Steve Dickson said in a statement. “Based on the initial information, we came to the conclusion that the inspection interval for the hollow fan blades, which apply only to this engine model and are only used in Boeing 777 aircraft, should be extended.”

The Colorado episode that involved United Airlines Flight 328 on Saturday resulted in no reported injuries, but the plane threw debris over three neighborhoods before safely landing in Denver.

In a statement on Sunday, United said: “Safety remains our top priority – for our employees and our customers.” It went on, “This is why our pilots and flight attendants receive extensive training to prepare and manage incidents like United Flight 328. We continue to pride ourselves on their professionalism and unwavering commitment to safety in our daily operations and in emergencies that happen. “

Mr. Dickson said the FAA is working with its counterparts around the world and that its security experts meet with Pratt & Whitney and Boeing “late into the evening” to complete details of the required inspections. According to the agency, only airlines in the USA, Japan and South Korea operate Boeing 777s with the affected Pratt & Whitney PW4000 engine model.

A spokesman for Japan Airways said the airline stopped using the 13 engine-equipped Boeing 777s in its fleet before the aviation authority issued its policy. Only three scheduled flights were affected. The airline announced last year that it would remove all 13 aircraft from its fleet by early next year.

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Business

United Boeing 777 suffers engine failure after takeoff from Denver, particles discovered however no accidents

A United Airlines plane

Nicolas Economou | NurPhoto | Getty Images

A United Airlines Boeing 777-200 bound for Honolulu suffered an engine failure shortly after taking off from Denver on Saturday, the Federal Aviation Administration said.

The plane returned to Denver, where it landed safely. Images shared on social media showed what appeared to be part of the engine nacelle in front of a house while police shared other debris. United said no injuries were reported on board the flight.

“The FAA is aware of reports of debris near the aircraft’s flight path,” the agency said in a statement.

The National Transportation Safety Board and the FAA said they are investigating the incident. The Broomfield Police Department in Colorado said the plane dropped debris in several neighborhoods and warned not to touch or move any part of the plane.

United Flight 328 had 231 passengers and 10 crew members on board.

United said it is in contact with the FAA, NTSB, as well as local law enforcement agencies.

“All passengers and crew were dropped off and transported back to the terminal,” United said in a statement in Denver. “We are now working on getting our customers on a new flight to Honolulu in the next few hours.”

The Association of Flight Attendants-CWA, which represents United cabin crews, said its staff support and safety committees provide assistance to the crews.

“We are grateful that the plane landed safely,” said the union.

Boeing said it had received reports of the incident.

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Business

United returns Boeing 737 Max to business service after grounding

A United Airlines Boeing 737 Max 9 aircraft lands at San Francisco International Airport in Burlingame, California on March 13, 2019.

Justin Sullivan | Getty Images

United Airlines put the Boeing 737 Max back into service on Thursday. The second U.S. airline to return the plane after two fatal crashes resulted in a global landing in 2019.

The Federal Aviation Administration suspended its 20-month landing of the aircraft in November after Boeing made software and other safety changes to its bestseller. The resumption of deliveries last year was a relief for Boeing. Grounding planes starved money, a crisis compounded by the impact of the Covid-19 pandemic on jetliner demand.

United Flight 1864, the airline’s first Max passenger flight since landing, took off from its Denver hub and arrived in Houston at 11:23 a.m. local time. United has about 550 flights on the Max this month and about 2,000 scheduled for March. The Chicago-based airline expects to deliver 24 Max aircraft this year and had 14 in its fleet at the time of landing in March 2019.

American Airlines became the first US airline in December to return aircraft to commercial service with flights from its Miami hub. The Brazilian airline Gol was the first airline in the world to resume flights with the Max last year. Southwest Airlines and Alaska Airlines plan to fly Max planes next month.

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Health

Boeing says its 777X orders have fallen by a 3rd after supply delays

A Boeing 777X aircraft flies over the Boeing Everett Factory

David Ryder | Reuters

Boeing cut its backlog of 777X aircraft by more than a third after the aerospace giant announced new delays for the debut of its newest aircraft, according to a new securities filing.

The Chicago-based manufacturer said last week it doesn’t expect the 777X to go live by the end of 2023, more than two years later than previously expected. According to Boeing on Monday, the 777X order list at the end of 2020 was 191 compared to 309 in the previous year.

Boeing routinely removes aircraft from its order book because a billing rule dictates how orders that are at risk of being canceled are logged. In general, aircraft purchase agreements make it easier for customers to cancel orders when aircraft are delayed.

Boeing charged a $ 6.5 billion fee for delays on the 777X in the fourth quarter.

The company has removed hundreds of 737 Max orders from its order book under similar accounting rules and full cancellations. These narrow-body aircraft, Boeing’s best-selling jetliner, are flying passengers again after almost a while grounding for two years after two fatal accidents.

Boeing said last week that additional regulatory scrutiny of the larger 777X aircraft after the Max crashes, as well as weaker customer appetite for new aircraft amid the pandemic, would add to delays in the delivery of the wide-body aircraft.

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What to Know Concerning the Boeing 737-500 Sriwijaya Air Airplane Crash

The crash of an airplane in Indonesia with more than 60 people is a difficult time for aviation giant Boeing. Its reputation was marred by years of investigations into fatal crashes.

While authorities are still investigating the cause, the plane that crashed near the Indonesian capital Jakarta on Saturday was a 26-year-old 737-500, a workhorse model with a good safety record. The aircraft at the center of the Boeing crisis was the 737 Max, a later version with flawed anti-stall software that led to two fatal crashes.

Here’s what you should know about the Boeing plane crashing in Indonesia.

It is unclear what caused the crash. Sriwijaya Air Flight 182, which flew to the town of Pontianak on the island of Borneo, took off after a delay in bad weather in heavy monsoon rains. It crashed more than 10,000 feet in less than a minute, according to tracking site Flightradar24.

Indonesia, an archipelago nation with thousands of islands, is heavily dependent on air traffic. Although the country has a long history of air accidents, Sriwijaya Air has not had a single fatal crash since it opened in 2003.

The plane involved in the Sriwijaya Air crash, which lost contact shortly after taking off from Jakarta on Saturday, was a Boeing 737-500, a proven model developed in the 1980s, and not the one in trouble Accidental airliner 737 Max, which landed on the ground after fatal crashes in 2018 and 2019.

The aircraft that was involved in the crash on Saturday is an earlier model of the 737 and has been in service for 26 years. It was previously flown by Continental Airlines and United Airlines before being delivered to Sriwijaya Air in 2012, according to the Airfleets’ online database.

The 737-500 does not have the same crystal system as the 737 Max, which was triggered when another Indonesian flight, Lion Air Flight 610, crashed in 2018, killing all 189 people on board. The same system was blamed when a 737 Max crashed in Ethiopia in March 2019, killing 157 people.

These crashes forced the worldwide landing of the Max fleet and a crisis for Boeing. The company sacked its CEO and said last year that it would cost Max more than $ 18 billion to ground, a major blow even before the coronavirus pandemic hit the industry.

Last week the company agreed to pay $ 2.5 billion, including $ 500 million for a victim fund, to solve a criminal conspiracy charge to defraud the Federal Aviation Administration over the valuation of the 737 Max.

The troubled 737 Max flew again last month. American Airlines Flight 718 made the aircraft’s first commercial flight after the FAA lifted its basic order in November. Before they can fly again, the wiring and software of every 737 Max aircraft must be changed.

The 737-500 was introduced by Southwest Airlines with the purchase of 20 aircraft in 1987. The airline used the 122-capacity model to more efficiently travel longer routes with fewer passengers, Southwest corporate historian Richard West wrote in 2016. That demand fell as long-haul travel increased, and that of Southwest The last 737-500 flew in September 2016.

In the past the 737-500 was a safe aircraft. The series it belongs to, including the 737-300 and 737-400, has had 19 fatal accidents in more than three decades, or about one fatal accident for every four million departures, according to a 2019 Boeing report.

According to the Aviation Safety Network, four previous fatal accidents were recorded in 737-500, including accidents in South Korea in 1993, Tunisia in 2002, and Russia in 2008 and 2013.

Boeing manufactured 389s of the 737-500s before the model was discontinued. Up to 100 are used by smaller airlines around the world in countries like Afghanistan, Iran, Nigeria, Russia, and Ukraine, according to the tracking website Planespotters.net.

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World News

Indonesia Boeing Aircraft Crashes Into Sea: The Newest Updates

BANGKOK – A passenger plane carrying more than 60 people crashed into the Java Sea a few minutes after taking off from the Indonesian capital Jakarta on Saturday, Indonesian officials said, again drawing attention to a nation long cursed by air disasters.

The fate of the plane, a Boeing 737-500, also had the potential to drag the troubled American aviation giant into a worse public spot, although the cause of the crash was not yet clear.

The Indonesian Ministry of Transportation announced that the last contact with the plane, Sriwijaya Air Flight 182, was at 2:40 p.m. local time. The plane flew to the city of Pontianak on the island of Borneo. According to the Ministry of Transport, there were 62 people on board. Four minutes after taking off in heavy rain in the monsoon season, the 26-year-old aircraft lost more than 10,000 feet of altitude in less than 60 seconds after a delay in bad weather, according to Flightradar24, the flight tracking service.

The Indonesian National Search and Rescue Agency said it found debris in waters northwest of Jakarta that it believed could have come from the wreckage of the aircraft, but that darkness and bad weather hampered the search. The area where the debris was found is known as the Thousand Islands.

“Tomorrow we will investigate the place,” said Soerjanto Tjahjono, the head of the National Road Safety Committee in Indonesia, on Saturday evening, clouding hopes that survivors could be found.

Boeing confirmed the crash on Saturday and said on Twitter: “Our thoughts are with the crew, passengers and their families. We are in contact with our airline customers and are ready to support them in these difficult times. “

The aviation sector in Indonesia, a developing country with thousands of inhabited islands, has been plagued by crashes and security vulnerabilities for years. As Indonesian airlines, especially low-cost airlines, have grown rapidly to cover a vast archipelago, the domestic aviation industry has been undermined by poor aircraft maintenance and careless adherence to safety standards.

For years, the leading Indonesian air carriers were banned from flying to the US and Europe by the regulators of these countries. Low cost airlines would go into business only to file for bankruptcy after fatal crashes.

However, Sriwijaya Air, Indonesia’s third largest airline, which opened in 2003, has never suffered a fatal crash.

And the Sriwijaya Air plane, which disappeared from radar screens on Saturday, was part of Boeing’s 737 500 series, which is considered a workhorse model with years of safe flying.

Whatever the cause, the crash comes at a terrible time for Boeing, whose reputation and profits were shattered two years ago by two crashes aboard its 737 Max aircraft.

In 2018, Lion Air Flight 610 crashed into the Java Sea with 189 people on board after the anti-stall system of the 737 Max jetliner malfunctioned. Another 737 Max crashed in Ethiopia in March 2019 after a similar faulty activation of the antistall system.

A total of 346 people died in these crashes that led to the creation of the Max fleet worldwide, sparked criminal investigations, scrutinized governments around the world and resulted in the overthrow of the Boeing CEO. In November, the Federal Aviation Administration became the first major aviation authority to lift its flight ban after requiring software updates, rewiring and retraining of pilots. At the end of December, American Airlines became the first US airline to resume scheduled flights on board the 737 Max.

Boeing estimated last year that grounding would cost more than $ 18 billion. But that was before the coronavirus pandemic brought travel to a standstill and messed up the aviation industry. In 2020, Boeing lost more than 1,000 aircraft orders, mostly for the Max, although there are still more than 4,000 left. The share price has fallen by about a third compared to two years ago.

On Thursday, the company announced it would pay more than $ 2.5 billion in an agreement with the Justice Department related to the antistall software used in the 737 Max. This includes $ 500 million for the families of those killed in the accidents and $ 1.77 billion in compensation for customers. In a statement announcing the deal, a senior Justice Department official accused Boeing staff of “choosing the path of gain over openness by hiding essential information from the FAA”.

Whistleblowers have accused Indonesian transportation officials of ignoring danger signs as domestic airlines, including Lion Air, expanded rapidly to cater to a growing middle class in a nation of 270 million people.

The Lion Air Group, which belongs to Indonesia’s largest airline, signed the two largest air transport agreements in history at the time, one with Boeing and one with Airbus. Boeing had targeted airlines in developing countries like Lion Air with its 737 Max model. eager to pack their fleets with new jets designed for short money-making.

However, aviation experts warned that selling aircraft to airlines, which are growing rapidly in unregulated environments, could be a recipe for disaster.

Jefferson Irwin Jauwena, the executive director of Sriwijaya Air, said Saturday night that they are “very concerned about this incident”.

“We hope your prayers will help the search process go well and smoothly,” he added. “We will also offer the families the best possible help.”

Rapin Akbar, the uncle of Rizki Wahyudi, one of the passengers on Flight 182, said his nephew called him on Saturday to tell him the flight from Jakarta to Pontianak was delayed. Mr Rapin reminded his nephew, a national park employee, to keep his face mask at the airport to avoid contracting the coronavirus. Mr. Rizki’s wife, child, mother and cousin were also on the plane.

While waiting for search and rescue boats to report, Mr Rapin said he was hoping for his family members. “There will be a miracle from Allah,” he said.

Indonesian aviation analysts said this crash could jeopardize the viability of Sriwijaya Air, especially as the coronavirus has emptied the Indonesian skies of many planes.

“Sriwijaya is trying hard to survive and the pandemic is making it harder,” said Gerry Soejatman, an Indonesian aviation expert. “This crash could mean the end.”

Indonesian pilots have also complained that the coronavirus has reduced their opportunities to practice their skills and brush up on their training. At one point during the pandemic, Sriwijaya only operated five planes, Soejatman said, which lowered crew morale.

At the Indonesian National Road Safety Committee, investigators were preparing for the very familiar task of finding out what went wrong in the country’s skies.

“Whenever we hear this kind of news, we get ready,” said Ony Suryo Wibowo, a committee investigator, on Saturday. “We collect all the information we can get.”

Niraj Chokshi contributed to the coverage from New York.

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Boeing to pay greater than $2.5 billion to settle prison conspiracy prices over 737 Max

An employee works near a Boeing 737 Max aircraft at the Boeing 737 Max manufacturing facility in Renton, Washington, the United States, on December 16, 2019.

Lindsey Wasson | Reuters

Boeing agreed to pay more than $ 2.5 billion to settle criminal complaints with the U.S. Department of Justice that the company accused of hiding information about its 737 Max plane, which was involved in two crashes the Federal Prosecutor announced on Thursday that 346 people were killed.

Prosecutors said Boeing had “knowingly and intentionally” conspired to defraud the United States by undermining the Federal Aviation Administration’s ability to assess the aircraft’s safety.

Boeing admitted that two 737 aeronautical pilots “fooled” the FAA about the capabilities of a flight control system on the aircraft, software that was later implicated in the two crashes, the Justice Department said. The deferred law enforcement arrangement closes the DOJ’s roughly two-year investigation and drops all charges after three years if there are no additional violations.

The $ 2.51 billion fine consists of a $ 243.6 million fine, a $ 500 million fund for family members of accident victims and $ 1.77 billion for Airline customers. The company said it had incurred a large portion of these costs in previous quarters and expects fourth quarter 2020 earnings to be charged at $ 743.6 million to cover the remainder.

“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and misleading behavior by employees of one of the world’s leading manufacturers of commercial aircraft,” wrote Assistant Attorney General David P. Burns of the Department of Justice’s Criminal Division in a release. “Boeing employees chose the win over openness path by hiding essential information about the operation of their 737 Max aircraft from the FAA and trying to cover up their deception.”

The crashes plunged Boeing into its worst crisis ever, sparked the creation of its best-selling aircraft worldwide, conducted numerous investigations and damaged the reputation of one of the largest aircraft manufacturers in the world.

Last month, the FAA approved software and other security changes Boeing had made to the planes and gave airlines permission to fly them again.

The company admitted the wrongdoing and waived a trial under its contract with the DOJ to settle the charges. The agreement also did not include top executives, as the misconduct was neither pervasive nor senior executives.

“This is an essential solution to a very serious matter, and I firmly believe that it is the right thing for us to enter into this resolution – a move that properly recognizes that we have failed to live up to our values ​​and expectations”, said CEO Dave Calhoun in a note to Boeing employees.

Boeing shares fell about 1% after close of trading.

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