Latest news with #737MAX9
Time of India
3 days ago
- Business
- Time of India
Aircraft crashes to regulatory hurdles: Despite several challenges, Boeing may be benefitting big from Donald Trump's trade war
The US aerospace giant has globally been in the news for all the wrong reasons. US President Donald Trump's trade war seems to be benefitting one aviation sector giant in America - Boeing! As Trump seals trade deals with countries around the world, he is also bringing in deals, and Boeing is reaping the rewards. Boeing is bagging new orders through these trade deals which could prove advantageous for the company as it recovers from recent difficulties, according to a New York Times report. Additionally, these deals enable Trump to demonstrate the effectiveness of his distinctive trade strategies in supporting American industry. Boeing's Recent Troubles The US aerospace giant has globally been in the news for all the wrong reasons - the biggest being the recent crash of Air India 's AI-171 aircraft which was a Boeing 787 Dreamliner. Investigations on the cause of the crash, which killed all but onboard, are ongoing. Additionally, Boeing faces critical challenges before it can convert its new orders into revenue. The manufacturer lags significantly in obtaining regulatory clearance for key aircraft models, including both the smallest and largest versions of the 737 Max, as well as the 777-9, which initiated FAA certification test flights twelve months ago. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mini House for 60 sqm for Seniors with Toilet and Bath (Price May Surprise You) Pre Fabricated Homes | Search Ads Search Now Undo Boeing's operational difficulties have created significant setbacks. Following two tragic crashes, its bestselling 737 Max was suspended from service for approximately 24 months. A recent Reuters report quoted FAA Administrator Bryan Bedford saying that Boeing hasn't requested the removal of the 38-plane monthly production limit for 737 MAX aircraft. The agency will conduct a thorough assessment of the manufacturer's supply chain before reaching any conclusions. The production restriction was established by the FAA following a January 2024 incident where an Alaska Airlines 737 MAX 9 aircraft experienced an emergency situation mid-flight due to missing crucial bolts. In June this year, The National Transportation Safety Board issued a stern critique regarding Boeing's inadequate safety measures, which led to the cabin panel blowout incident on a 737 MAX 9 aircraft in January 2024. The incident triggered a significant crisis for the aircraft manufacturer. According to a Reuters report, the safety board delivered a scathing assessment of Boeing's safety protocols and highlighted the company's oversight failure in installing four crucial bolts during the production of an Alaska Airlines MAX 9. Meanwhile, Boeing's suppliers may face financial strain due to Trump's imposed tariffs, whilst potential retaliatory measures from trading partners, particularly the European Union, could adversely affect the aircraft manufacturer's business. Boeing New Order Book Industry experts suggest that the trade agreements could lead to additional orders, as potential buyers might feel compelled to secure their positions now to avoid future delays. Aircraft ordered at present will be delivered in subsequent years. Recent announcements include orders for numerous Boeing aircraft from Indonesia and Japan this month, following earlier agreements with Bahrain, the United Arab Emirates, Saudi Arabia and Qatar. However, aviation industry experts express doubt about the necessity of US trade negotiators' intervention in securing Boeing aircraft orders. The procurement of aircraft involves meticulous planning by airlines, including state-owned carriers, spanning several months to years. The limited choice between Boeing and Airbus, the sole manufacturers of large commercial aircraft, further influences purchasing decisions. Nevertheless, analysts acknowledge the strategic emphasis placed by Trump's administration on Boeing contracts within trade agreements. This focus aligns with Boeing's significant role as a major American employer and prominent export contributor. The financial markets have responded positively to the new order announcements, with Boeing's stock value showing consistent growth since April, coinciding with Trump's introduction of tariffs. The company's CEO Kelly Ortberg accompanied Trump during his Middle East visit in May when the Qatar agreement was disclosed. "If the president of the country says, 'Come with me and be certain that we sign something big that says there will be many jobs in the US,' what will you do?" said Adam Pilarski, president of Avitas, an aviation consulting firm, according to the New York Times report. However, Pilarski and additional industry specialists advised that these orders might not be as significant as they appeared. Trump's Role Overstated? The specifics of these agreements remain largely undisclosed, indicating ongoing complex discussions between the aircraft manufacturer and various airlines. A case in point from this month shows Trump's announcement of Indonesia's commitment to 50 Boeing aircraft, whilst an Indonesian official later clarified that negotiations were still ongoing between Garuda, their state carrier, and Boeing. "I suspect these orders are, as we used to joke at air shows, MOUTHLs — memoranda of understanding to have lunch," said Richard Aboulafia, a managing director at AeroDynamic Advisory, a consulting firm. "The real hard work of contract negotiation and finance package negotiation takes place after the president's plane has left the country,' he said according to the New York Times report. Industry analysts suggest that many of these orders would likely have materialised regardless of Trump's involvement. In May, Qatar Airways, a significant international carrier, confirmed a substantial order of 150 Boeing wide-body aircraft. This particular announcement was notably comprehensive in its details. Whilst political influence may drive some orders, circumstances can shift substantially before aircraft delivery. Both Boeing and Airbus maintain extensive order books spanning multiple years of manufacturing. Airlines retain the option to withdraw from agreements, albeit potentially losing deposits. Additionally, carriers can request delivery postponements or order reductions. Manufacturers might accommodate such adjustments, particularly if it enables them to redirect aircraft to other airlines with urgent requirements for new aircraft. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. 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Newsweek
3 days ago
- Business
- Newsweek
Thousands of Boeing Employees Could Strike Next Week: What To Know?
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. More than 3,200 union workers at three St. Louis-area plants that produce U.S. fighter jets voted "overwhelmingly" to go on strike on Sunday after they rejected a proposed contract that included a 20 percent wage increase over four years. The company said it was preparing for a strike that the union said could begin on Aug. 4. Why It Matters The company has faced serious difficulties over recent years including several safety-related incidents. In March, Transportation Secretary Sean Duffy said Boeing had lost the trust of the American people and needed strict oversight after a mid-air panel blowout on a new Alaska Airlines 737 MAX 9 airplane that was missing four key bolts and two fatal crashes in 2018 and 2019 that killed 346 people. A Boeing 787 Dreamliner crashed in India last month killing 260 people. A strike late last year by machinists' union memes put a heavy toll on the company, compounding existing production issues and stalling the manufacturing of its key aircraft, including the 737 MAX, 767, and 777 models. Pro-union signs are pictured outside the Boeing Renton Production Facility on November 3, 2024. More than 3,000 members of the International Association of Machinists and Aerospace Workers in the St. Louis area voted on Sunday... Pro-union signs are pictured outside the Boeing Renton Production Facility on November 3, 2024. More than 3,000 members of the International Association of Machinists and Aerospace Workers in the St. Louis area voted on Sunday to go on strike. MoreWhat To Know The International Machinists and Aerospace Workers union, or IAM, said the vote by District 837 members was overwhelmingly against the proposed contract. The current contract was to expire at 11:59 p.m. CT on Sunday, but the union said a "cooling off" period would keep a strike from beginning for a week, until Aug. 4, according to The Associated Press. Union leaders had recommended approving Boeing's offer sent last week, calling it a "landmark" agreement that the offer would improve medical, pension and overtime benefits in addition to pay. Dan Gillian, Boeing's Air Dominance vice president, general manager and senior St. Louis Site executive said in an emailed statement that the company was disappointed that the Boeing employees voted down "the richest contract offer we've ever presented to IAM 837 which addressed all their stated priorities." The Boeing Air Dominance division produces several military jets, including the U.S. Navy's Super Hornet, as well as the Air Force's Red Hawk training aircraft. The division is expanding manufacturing facilities in the St. Louis area for the new U.S. Air Force fighter, the F-47, after it won the contract earlier this year. The Next Generation Air Dominance (NGAD) fighter jet program, initially conceived as a "family of systems" centered around a sixth-generation fighter jet, is meant to replace the F-22 Raptor. What People Are Saying Boeing's Air Dominance Vice President Gillian said in the statement: "We've activated our contingency plan and are focused on preparing for a strike. No talks are scheduled with the union." IAM said in a statement: "Union members delivered a clear message: the proposal from Boeing Defense fell short of addressing the priorities and sacrifices of the skilled IAM Union workforce. Our members are standing together to demand a contract that respects their work and ensures a secure future." What Happens Next The strike is due to begin after a one-week "cooling off" period, on Aug. 4.
Reuters
7 days ago
- Business
- Reuters
FAA to review Boeing supply chain before approving hike to 737 MAX production
OSHKOSH, Wisconsin July 24 (Reuters) - The head of the Federal Aviation Administration said Boeing (BA.N), opens new tab has not yet asked the agency to remove a 38-plane per month cap on 737 MAX production and will review the planemaker's supply chain before making any decision. The FAA imposed the production cap shortly after a January 2024 mid-air emergency involving a new Alaska Airlines (ALK.N), opens new tab 737 MAX 9 missing four key bolts. "We're going to want to look at the entire supply chain," FAA Administrator Bryan Bedford told reporters on the sidelines of an air show, praising Boeing's efforts to improve its culture and adding he would not be surprised if Boeing asks to raise the rate. "I believe it's real, but it's still embryonic," Bedford said of the planemaker's improvements. "We want to see long-term trends, healthy workforce, healthy safety culture. And then we want to see real factory improvements." Boeing did not immediately comment. The FAA in May extended by three years a program that allows Boeing to perform some tasks on the agency's behalf like inspections, saying the planemaker had made improvements. Boeing CEO Kelly Ortberg said in May the planemaker is "pretty confident" that it can increase production of its best-selling 737 MAX jets to 42 a month. Bedford also notes that the FAA is currently considering certifying the smallest and largest MAX variants -- the MAX 7 and MAX 10. Bedford said Boeing realizes getting the job done right the first time "actually is the cheapest way to make the plane.... I think they see real value in changing the culture on the shop floor, getting the defect rates down." But he is not ready to ease oversight. "It's all trending in the right direction. It's all very encouraging, but we're a long ways away from saying we can let our guard down," Bedford said.
Yahoo
7 days ago
- Business
- Yahoo
FAA to review Boeing supply chain before approving hike to 737 MAX production
By David Shepardson OSHKOSH, Wisconsin (Reuters) -The head of the Federal Aviation Administration said Boeing has not yet asked the agency to remove a 38-plane per month cap on 737 MAX production and will review the planemaker's supply chain before making any decision. The FAA imposed the production cap shortly after a January 2024 mid-air emergency involving a new Alaska Airlines 737 MAX 9 missing four key bolts. "We're going to want to look at the entire supply chain," FAA Administrator Bryan Bedford told reporters on the sidelines of an air show, praising Boeing's efforts to improve its culture and adding he would not be surprised if Boeing asks to raise the rate. "I believe it's real, but it's still embryonic," Bedford said of the planemaker's improvements. "We want to see long-term trends, healthy workforce, healthy safety culture. And then we want to see real factory improvements." Boeing did not immediately comment. The FAA in May extended by three years a program that allows Boeing to perform some tasks on the agency's behalf like inspections, saying the planemaker had made improvements. Boeing CEO Kelly Ortberg said in May the planemaker is "pretty confident" that it can increase production of its best-selling 737 MAX jets to 42 a month. Bedford also notes that the FAA is currently considering certifying the smallest and largest MAX variants -- the MAX 7 and MAX 10. Bedford said Boeing realizes getting the job done right the first time "actually is the cheapest way to make the plane.... I think they see real value in changing the culture on the shop floor, getting the defect rates down." But he is not ready to ease oversight. "It's all trending in the right direction. It's all very encouraging, but we're a long ways away from saying we can let our guard down," Bedford said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
FAA to review Boeing supply chain before approving hike to 737 MAX production
By David Shepardson OSHKOSH, Wisconsin (Reuters) -The head of the Federal Aviation Administration said Boeing has not yet asked the agency to remove a 38-plane per month cap on 737 MAX production and will review the planemaker's supply chain before making any decision. The FAA imposed the production cap shortly after a January 2024 mid-air emergency involving a new Alaska Airlines 737 MAX 9 missing four key bolts. "We're going to want to look at the entire supply chain," FAA Administrator Bryan Bedford told reporters on the sidelines of an air show, praising Boeing's efforts to improve its culture and adding he would not be surprised if Boeing asks to raise the rate. "I believe it's real, but it's still embryonic," Bedford said of the planemaker's improvements. "We want to see long-term trends, healthy workforce, healthy safety culture. And then we want to see real factory improvements." Boeing did not immediately comment. The FAA in May extended by three years a program that allows Boeing to perform some tasks on the agency's behalf like inspections, saying the planemaker had made improvements. Boeing CEO Kelly Ortberg said in May the planemaker is "pretty confident" that it can increase production of its best-selling 737 MAX jets to 42 a month. Bedford also notes that the FAA is currently considering certifying the smallest and largest MAX variants -- the MAX 7 and MAX 10. Bedford said Boeing realizes getting the job done right the first time "actually is the cheapest way to make the plane.... I think they see real value in changing the culture on the shop floor, getting the defect rates down." But he is not ready to ease oversight. "It's all trending in the right direction. It's all very encouraging, but we're a long ways away from saying we can let our guard down," Bedford said.
