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Boeing lost $2.4 billion in three months and to end 747 production and warns of job cuts

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CHICAGO, July 29, 2020 /PRNewswire/ — 

  • Financial results continue to be significantly impacted by COVID-19 and the 737 MAX grounding
  • Revenue of $11.8 billion, GAAP loss per share of ($4.20) and core (non-GAAP)* loss per share of ($4.79)
  • Operating cash flow of ($5.3) billion; cash and marketable securities of $32.4 billion
  • Total backlog of $409 billion, including more than 4,500 commercial airplanes

The Boeing Company [NYSE: BA] reported second-quarter revenue of $11.8 billion, GAAP loss per share of ($4.20) and core loss per share (non-GAAP)* of ($4.79), primarily reflecting the impacts of COVID-19 and the 737 MAX grounding (Table 1). Boeing recorded operating cash flow of ($5.3) billion. 

“We remained focused on the health of our employees and communities while proactively taking action to navigate the unprecedented commercial market impacts from the COVID-19 pandemic,” said Boeing President and Chief Executive Officer Dave Calhoun. “We’re working closely with our customers, suppliers and global partners to manage the challenges to our industry, bridge to recovery and rebuild to be stronger on the other side.” 

In the second quarter, Boeing restarted production operations across key sites following temporary pauses to protect its workforce and introduce rigorous new health and safety procedures. Despite the challenges, Boeing continued to deliver across key commercial, defense, space and services programs. The company also resumed early stages of production on the 737 program with a focus on safety, quality and operational excellence. Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737, including completion of FAA certification flight tests.

To align to the sharp reduction in commercial market demand in light of COVID-19, the company is taking several actions including further adjusting commercial airplane production rates and reducing employment levels.

“The diversity of our balanced portfolio and our government services, defense and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities,” Calhoun said. “We are taking the right action to ensure we’re well positioned for the future by strengthening our culture, improving transparency, rebuilding trust and transforming our business to become a better, more sustainable Boeing. Air travel has always proven to be resilient – and so has Boeing.”

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Operating cash flow was ($5.3) billion in the quarter, primarily reflecting lower commercial deliveries and services volume due to COVID-19 and the 737 MAX grounding, as well as timing of receipts and expenditures

Cash and investments in marketable securities increased to $32.4 billion, compared to $15.5 billion at the beginning of the quarter, driven by the issuance of new debt (Table 3). Debt was $61.4 billion, up from $38.9 billion at the beginning of the quarter due to the issuance of new debt, partially offset by repayment of maturing debt.

Total company backlog at quarter-end was $409 billion.

Commercial Airplanes second-quarter revenue and operating margin decreased reflecting lower delivery volume, partially offset by a lower 737 MAX customer consideration charge of $551 million in the quarter compared to a $5.6 billion charge in the same period last year. Second-quarter operating margin was also negatively impacted by $712 million of abnormal production costs related to the 737 program, $468 million of severance expense and $133 million of abnormal production costs from the temporary suspension of operations in response to COVID-19.

The 737 program resumed early stages of production in May and expects to continue to produce at low rates for the remainder of 2020. The COVID-19 pandemic has significantly impacted air travel and reduced near-term demand, resulting in lower production and delivery rate assumptions. Commercial Airplanes expects to gradually increase the 737 production rate to 31 per month by the beginning of 2022, with further gradual increases to correspond with market demand. Estimated potential concessions and other considerations to customers related to the 737 MAX grounding increased by $551 million in the quarter. There was no material change to estimated abnormal production costs. 

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Commercial Airplanes has further updated its production rate assumptions this quarter to reflect impacts of COVID-19 on its demand outlook, and will continue to assess them on an ongoing basis. The 787 production rate will be reduced to 6 per month in 2021. The 777/777X combined production rate will be gradually reduced to 2 per month in 2021, with 777X first delivery targeted for 2022. At this time, production rate assumptions have not changed on the 767 and 747 programs.

Commercial Airplanes delivered 20 airplanes during the quarter, and backlog included over 4,500 airplanes valued at $326 billion.

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Etihad Airways enhances interline and codeshare with six airlines

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Etihad Airways enhances interline and codeshare with six airlines

Etihad Airways has launched reciprocal interline partnerships with three new airline partners – Philippine Airlines (PAL), Austrian Airlines (OS) and Airlink South Africa (4Z), while re-launching interline links with Biman Bangladesh and codeshares with Air Seychelles (HM) and ITA Airways (AZ).

The deal means customers of all airlines involved will enjoy enhanced connectivity to destinations across each other’s networks, can book on a single ticket and only have to check in once at the start of their flight, with their baggage checked through to their end destination.

Etihad Airways adds flights to Shanghai to its route network(Opens in a new browser tab)

Arik De, Etihad’s Chief Revenue Officer, said: “Broadening our network reach, and allowing more guests to come visit Abu Dhabi has always guided our purpose. These six interline/code agreements make life easier for guests of all the airlines involved. With Austrian Airlines, this tie-in gives our guests access up to 58 European destinations via Vienna, operated by Etihad daily during the summer, and joins the other four members of the Lufthansa Group with whom we already have interline or codeshare agreements.

A deal with Airlink South Africa gives connecting guests via our Johannesburg flight seamless access to 16 domestic destinations in South Africa, and 25 regional African destinations, and it complements existing options with South African Airways.

Emirates and Philippine Airlines announce interline partnership(Opens in a new browser tab)

“And teaming up with Philippine Airlines provides easy access to 19 domestic Filipino destinations including Cebu, Cagayan de Oro, Davao and Kalibo, to and from Etihad’s double daily Manila service, for the large Filipino diaspora living in the UAE.

“Etihad’s successful partnership with ITA Airways over Rome Fiumicino to Italy, Europe and beyond has also been restored following ITA’s own Amadeus Altea migration in February.” The expanded interline and codeshare offerings will be progressively rolled out across Etihad sales channels, including Etihad.com and travel agents, over the coming weeks.

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United Airlines Fired A Color Blind Pilot Who Could Not Fly

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United Airlines Fired A Color Blind Pilot Who Could Not Fly

A pilot is suing United Airlines from being fired shortly after being grounded due to his inability to distinguish distinct colours when flying at night.

A blind couple and their baby were stopped from boarding two separate flights after an airline tried to make them pay for an escort(Opens in a new browser tab)

On April 12, 2022, United recruited Damon Meyer of Portland,  but he lost his job less than two months later when he submitted a long-term disability claim through an insurance plan he had just signed up for. He was unable to fly at night because he “couldn’t determine the colours of signals on taxiways”. Although he says there is “no proof” that he had this disease when he was hired, he might have gotten it in the weeks that followed.

Meyer submitted a long-term disability claim through United’s programme the day after being grounded and only six days after signing up for the insurance plan. The next month, United Airlines fired Meyer, citing a “ludicrous theory” that he “would not have met the standards for a legitimate medical licence at the time of his hiring.”

After working for 6 years Chinese cabin crew fired for being too old(Opens in a new browser tab)

If Meyer had a medical examination immediately before being employed by United, the lawsuit claims it is “purely hypothetical” that he would have failed. Meyer’s claims were first accepted by the long-term disability plan’s administrators, but the reimbursement was later withdrawn because of his work termination.

Meyer sued United and the long-term disability plan administrators in a district court in Maine, seeking compensation for his colour blindness. Meyer is still “completely disabled,” according to the lawsuit.

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Qantas launches new inflight menus for its customers

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Qantas Customers travelling across its regional, domestic and international network are in for a bigger and better inflight and clounge dining experience as the airline rolls out a significant menu enhancement program this month.

The additional multi-million dollar investment introduces new dishes and larger portions across all cabins, using high-quality ingredients from premium Australian producers.

10 most expensive flight tickets in world ..!!(Opens in a new browser tab)

It is the single biggest investment in Qantas inflight and lounge dining in a decade and comes as the airline returns to profit and accelerates its customer investment programs. These include a $100 million expansion of domestic and international lounges, progressive renewal of its aircraft and new routes.

Key dining enhancements include:

International

First

  • Additional investment in premium produce with new dishes including Calvisius Caviar on Buckwheat Blinis with Pepe Saya Crème Fraiche, Queensland Spanner Crab and Sweet Pork Salad with Green Mango, Cashews and Nam Jim Dressing, Crumbed Margra Lamb Cutlets with Lemon Myrtle Celeriac Puree, Seared Glacier 51 Toothfish with Saffron Sauce, Steamed Potatoes and Braised Fennel, and Riverine Beef fillet with Green Beans and Rosemary Roasted Potatoes.

Business

  • Additional investment in premium produce with new dishes including Seared Grasslands Beef Fillet with Café de Paris Butter, Bannockburn Free-range chicken Kyiv and Seared Snapper with Black Bean Sauce, Seasonal Greens and Salted Chilli.
  • More substantial second meal on long flights between Australia and Asia in Business and Economy. Business dishes include a Crumbed Snapper Roll with Pickled Cabbage and Tartare sauce, and Stir-fried Noodles with Wombok, Cucumber, Sesame and Chilli Oil.

Premium Economy

  • New dishes include Salmon with Tomato Fennel Sauce, Red Quinoa and Brown Rice, and Braised Lamb Shank with Red Wine Mushroom Sauce and Potato Puree.
  • Introduction of a starter salad, as well as an ice-cream service on all flights.

Economy

  • New dishes in Economy with premium quality ingredients including Cajun Prawns with Spiced Rice, Korean Chilli and Garlic Chicken with Kimchi and Black Pepper Beef with Oyster Mushrooms.
  • New second meal dishes on long flights between Australia and Asia include Chicken Fried Rice, and Sage and Lemon ravioli with Kale and Napolitana sauce.

Domestic

  • A continuation of the new domestic Economy menu that launched in October 2022, offering more choice across the network including vegetarian options.
  • An increased range of lighter options in Business including Ploughman’s and Cheese plates featuring a selection of cheese, Free-range Chicken and Pistachio Terrine, Charcuterie and accompaniments along with Chicken and Corn soup with Dill and Green Pea soup with Mint.
  • The addition of starter salads in Business on long flights, which include Grilled Prawns with Asian slaw and Edamame and Tasmanian Smoked Salmon with Kale and Sweet Potato salad.
  • Premium snacks in Business from Koko Black, Brookfarm and Carman’s.
  • Return of pre-take off water and juice in Business on long domestic flights.

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These US airlines has the most on-time carrier in 2022, according to DOT data

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These US airlines has the most on-time carrier in 2022, according to DOT data

On Thursday, the Department of Transportation issued performance statistics for the major U.S. airlines for the full year.  According to the DOT’s Air Travel Consumer Report, Delta achieved an overall on-time rate of 82.1% percent.

Airlines With the Most Delays This Year, According to the Bureau of Transportation Statistics(Opens in a new browser tab)

The ATCR is designed to assist consumers with information on the quality of services provided by airlines. DOT remains committed to ensuring airline passengers are treated fairly and is concerned about recent flight cancellations and flight disruptions and difficulties families are experiencing in sitting together with no fees. The Department is currently investigating four domestic airlines to ensure that they are not engaging in unrealistic scheduling of flights. Last week, DOT rolled out a new family seating dashboard that highlights the airlines that guarantee fee-free family seating, and those that do not, making it easier for parents to avoid paying junk fees to sit with their children when they fly.

Major airline on-time performance for 2022, according to ATCR

  1. Delta Air Lines – 82.1% of flights on time
  2. Alaska Airlines  – 79.1% of flights on time
  3. United Airlines – 78.7% of flights on time
  4. American Airlines – 77.1% of flights on time
  5. Hawaiian Airlines – 75.8% of flights on time
  6. Southwest Airlines –  73.2% of flights on time
  7. Spirit Airlines – 73.0% of flights on time
  8. Frontier Airlines – 66.1% of flights on time
  9. JetBlue Airways – 64.6% of flights on time
  10. Allegiant Air – 63.4% of flights on time

December 2022 Flight Cancellations

In December 2022, reporting marketing carriers canceled 5.4% of their scheduled domestic flights, higher than the rate 1.1% in both November 2022 and in pre-pandemic December 2019.  Of the industry-wide 5.4% cancellation rate in December 2022, 54.51% of the cancellations were attributed to Southwest. Southwest canceled 14,042 flights from December 24 to December 31, which was 72.3% of the total flights that reporting carriers canceled during that time.

  1. Southwest Airlines – 14.6%
  2. Alaska Airlines Network – 7.6%
  3. Allegiant Air – 5.3%
  4. Delta Air Lines Network – 2.9%
  5. JetBlue Airways – 1.9%
  6. American Airlines Network – 1.8%

Mishandled Baggage

In December 2022, reporting marketing carriers handled 40.4 million bags and posted a mishandled baggage rate of 1.09%, higher than the rate of 0.51% in November 2022 and higher than the rate of 0.66% in pre-pandemic December 2019. Of the industry-wide 1.09% mishandling rate in December 2022, 26.68% of the mishandling were attributed to Southwest.

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Turkish 5th-generation fighter aircraft were first spotted in taxing.

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Turkish currently leads India and South Korea in the race for the next generation of fighter jets, as evidenced by data from the aircraft airframe that was revealed a few months ago. Turkish is now prepared to begin taxi trials. If Turkey manufactures the fifth-generation fighter jet in the future, it will be the most anticipated project for the country and will boost its reputation of aerospace technology.

Turkey’s fifth-generation stealth fighter, the TF-X, also known as the National Combat Aircraft (MMU), has started engine ground runs and slow-speed taxi testing. It will make its first flight by the end of 2023.

Turkish proudly displays the airframe of its 5th Gen fighter jet TFx at its production facility.(Opens in a new browser tab)

While more design refinement may be necessary to make the platform a low-observable platform, Turkey asserts that the basic prototype will be evaluated and that many adjustments will be made to the aircraft before it goes into production.

Turkish Aerospace Industries (TAI) is currently developing the TF-X, a fifth-generation Turkish fighter jet. It is anticipated to be capable of air-to-air, air-to-ground, and reconnaissance operations and to feature stealth capabilities and cutting-edge avionics.

To upgrade Turkey’s defensive capabilities and replace its outdated F-16 fleet, the TF-X is being built. TAI and British defense firm BAE Systems are working together on the project. The TF-X prototype is scheduled to have its maiden flight in 2025, with the goal of having the aircraft in service by 2030.

These 3 firms offer the Engine for AMCA India’s fifth-generation fighter plane(Opens in a new browser tab)

It is important to note that TF-development X’s has faced a number of difficulties, such as concerns about technology transfer and financing.   The project is still supported by the Turkish government, which views it as a crucial representation of the nation’s developing indigenous defense industry.

The F-16 and TF-X prototypes both use General Electric F110 engines, with Turkey TRMotor and Rolls-Royce working together to create a new engine that may be available by the end of the decade.

The TF-X MMU project has advanced technology in areas like low visibility, internal weapons slots, high maneuverability, increased situational awareness, and sensor fusion, all of which are necessary for a new generation of aircraft, making Turkey one of the few nations with the infrastructure and technology to produce a fifth-generation combat aircraft.

The aircraft also has numerous data fusion, artificial intelligence, and autonomous target identification and recognition capabilities.

Turkey will gradually make progress towards the development of a 5th generation fighter aircraft by 2028. National Combat Aircraft and the South Korean KAI KF-21 Boramae fighter jet program will start as a 4.5 generation program but the transition to a 5th generation fighter aircraft in the next ten years. The Advanced Medium Combat Aircraft (AMCA), on the other hand, is being developed by India with a more radical approach. It will start out as a 5th generation fighter jet in the Mk1 tranche and transition to a 5.5 generation fighter in the Mk2 tranche in 2035.

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India’s SpiceJet airline flying soon to Greece

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India's SpiceJet airline flying soon to Greece

The most popular low-cost carrier in India, SpiceJet, has appointed BBT Air – Aviation Services as its General Sales Agent (GSA) in Greece. BBT Air will be in charge of the airline’s sales, growth, and general representation in the Greek market, offering top-notch services to passenger and travel agencies.

Spicejet likely to induct 7 Boeing 737 Max aircraft on wet lease by November-end(Opens in a new browser tab)

BBT Air’s Commercial Director, Mr. Konstantinos Melas, said: “We are pleased to welcome SpiceJet to our portfolio and market. We’re confident that additional sales opportunities will materialize once SpiceJet becomes available in Greece. Our top aim will be to contact marine travel agencies and offer them another choice for flights within and outside of India because Greece has impressive results in marine/offshore traffic. Starting from there, we’ll seek to advance SpiceJet in our nation and consider the possibility of establishing a direct connection between Athens and Delhi in the future. . A much-desired route that is currently missing from Greece”.

The airline’s website, spicejet.com, as well as travel agencies with access to its B2B portal already have the flights displayed and available for purchase. By calling +30 210 9793500, the offices of BBT Air Aviation Services, which also accepts and manages all group requests and supports local travel agencies, passengers can also purchase their tickets there.

SpiceSaver, SpiceFlex, and SpiceMAX are the three pricing alternatives offered on all flights, providing greater service options, comfort, and flexibility for all passenger demands, both at the airport and during the flight.

The selection of BBT Air as GSA in the Greek market is a part of SpiceJet’s goal to expand internationally and providing its customers with seamless end-to-end connectivity between the two nations. The airline, which is India’s largest regional carrier and has a fleet of Boeing 737s, Q-400s, and freighters, operates numerous daily flights under UDAN or the Regional Connectivity Scheme.

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Indigo will begin to offer flights to Singapore and Dhaka in March.

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IndiGo strengthens international connectivity from Mumbai

IndiGo, India’s most preferred carrier has announced new direct flight between Mumbai-Dhaka from March 26, 2023. This new route has been introduced to cater to the rising demand for travel from Mumbai. The airline has also announced the resumption of operations between Mumbai and Singapore effective March 26, 2023.

IndiGo strengthens international connectivity with direct flights between Mumbai and Istanbul(Opens in a new browser tab)

The resumption of flights between Mumbai and Singapore will help promote tourism as both cities have many tourist attractions. According to Singapore Tourism Board, India accounted for over 686,000 of the overall 6.3 million global visitor arrivals in 2022, emerging as Singapore’s second-largest source market after Indonesia (1.1 million visitors). Singapore has famous attractions such as Universal Studios Singapore, Singapore Flyer, Gardens by The Bay, S.E.A. Aquarium, Sentosa Island, Sentosa Merlion Tower, Trick Eye Museum. These flights will not only promote tourism but also make travel hassle-free to these destinations through direct connections and additional capacity.

These flights are designed to cater to business and leisure travelers who are constantly on the lookout for new and affordable flying options to access destinations which help in building businesses and are known for their tourist attractions. Customers who wish to plan their travel can book tickets via our official website www.goIndiGo.in. The introduction of these flights will further bolster the airline’s international connectivity.

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