Latest news with #737Max
International Business Times
2 days ago
- Business
- International Business Times
Alaska Airlines Requests Ground Stop for All Mainline Aircraft, as Flyers Brace for Travel Delays
Alaska Airlines has issued a ground stop for all its mainline and Horizon Air flights throughout the United States. The U.S. Federal Aviation Administration (FAA) updated its status page on Sunday to reflect the unusual request, which stemmed from a widespread IT system outage. The ground stop reportedly began at 10:50 p.m. EST and was initially expected to end at midnight. However, the order was extended at the last moment to at least 12:30 a.m., with a moderate possibility of further delays. The original ground stop applied only to Alaska Airlines' mainline fleet, but the extension sometime later added a separate request to halt all Horizon Air flights as well. Sudden Stop Alaska Airlines (Representational purpose only) X While the restriction does not affect aircraft already in flight, it does stop any scheduled departures during the specified timeframe, potentially causing widespread travel disruption with delays and long lines. Alaska Airlines runs a fleet of at least 238 aircraft, all of which are Boeing models. "At approximately 8 p.m. Pacific on Sunday, Alaska Airlines experienced an IT outage that's impacting our operations," the airline said in a statement Sunday evening. "We requested a temporary, system-wide ground stop for Alaska and Horizon Air flights until the issue is resolved." "We apologize to our guests for this inconvenience." The airline has warned that there may be ongoing disruptions to its operations throughout the night, raising concerns about extensive travel delays. "If you are traveling tonight, please check the status of your flight before leaving for the airport." According to the FAA status page, the ground stop affecting Alaska Airlines' mainline fleet impacted all destinations. Passengers Troubled Alaska Airlines (Representational purpose only) X This incident comes weeks after a scathing report revealed serious mistakes by Boeing were responsible for a door plug detaching mid-flight from an Alaska Airlines 737 Max, endangering the lives of 175 passengers and crew members. The National Transportation Safety Board concluded that the near-disastrous event was the result of poor manufacturing practices at Boeing and a lack of adequate regulatory oversight. "An accident like this only happens when there are multiple system failures," NTSB chairman Jennifer Homendy said. The NTSB has been investigating the events that went terribly wrong just six minutes into a January 2024 flight from Portland, Oregon, to Ontario, initial investigation revealed that four essential bolts, designed to secure the door plug, were missing from the aircraft. It was later confirmed that the door panel left Boeing's Renton, Washington factory without these critical bolts in place. Even a single properly installed bolt would have been enough to hold the door securely, while the remaining three served as extra safety measures. Investigators found no issues with Alaska Airlines' flight crew training or preflight checks. NTSB Chair Jennifer Homendy credited the quick-thinking and heroic actions of the Alaska Airlines Flight 1282 crew with ensuring the safety of everyone on board.
The Standard
4 days ago
- Business
- The Standard
US judge sets August hearing on bid to end Boeing criminal prosecution
Airplane fuselages bound for Boeing's 737 Max production facility await shipment at Spirit AeroSystems headquarters in Wichita, Kansas, U.S. December 10, 2024. REUTERS/Nick Oxford/File Photo
Business Times
5 days ago
- Business
- Business Times
Garuda new 737 plane's higher rent may strain finances further
[JAKARTA] Garuda is paying twice as much to lease its latest Boeing 737 Max jet than it does for the older 737 planes in its fleet, another potential blow to its finances as it tries to return to profitability. The struggling Indonesian airline is paying around US$400,000 per month for the 737 Max 8 it has leased from BOC Aviation, according to people familiar with the matter. The state-owned carrier pays on average US$200,000 a month for its existing older Boeing 737-800 fleet, the people said, asking not to be identified discussing details that are private. BOC Aviation declined to comment. Representatives for Garuda didn't respond to a request for comment. Garuda, which is now owned by Indonesia's sovereign wealth fund Danantara, reported a full year loss in 2024 for the first time since restructuring nearly US$10 billion of debt in 2022. While the new Max 8 offers better fuel economy than the older planes, it's not clear whether the savings would be enough to compensate for the higher leasing costs. Outside of the difference in the age of the airframe, the doubling of the lease cost can in large part be attributed to the discounted rental prices that Garuda managed to get from its lessors during those debt restructuring negotiations. Danantara extended a US$405 million loan to Garuda just days before the airline agreed to lease the additional 737 Max. On Friday, the plane was en-route to Indonesia, according to data from flight tracking website FlightRadar24. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Garuda is already having trouble keeping its existing fleet in the air, with about 10 per cent of its planes grounded as recently as May as it struggled to make maintenance payments. Nearly 16 per cent of revenue in 2024 was for maintenance and repairs, the highest ratio among flag carriers globally, data compiled by Bloomberg show. Garuda could receive US$800 million to US$1.2 billion more from Danantara to assist with payments to maintenance and leasing companies, Bloomberg reported earlier this week, citing people familiar with the matter. Further pressure on the airline may come as it has to take new aircraft after Indonesian President Prabowo Subianto reached a trade deal with US leader Donald Trump that included the purchase of 50 Boeing aircraft. That could force Garuda to agree to a deal under terms it doesn't necessarily favour and with jets it doesn't actually need. Trump announced in a social media post on Tuesday that Indonesia will order 50 aircraft, including 'many' of Boeing's larger 777 planes, without disclosing a buyer. Garuda chief executive officer Wamildan Tsani Panjaitan has previously said he's in talks to buy 50 to 75 Boeing aircraft, including 737 Max and 787-9 Dreamliner models. BLOOMBERG
Bloomberg
5 days ago
- Business
- Bloomberg
Garuda New 737 Plane's Higher Rent May Strain Finances Further
Garuda is paying twice as much to lease its latest Boeing Co. 737 Max jet than it does for the older 737 planes in its fleet, another potential blow to its finances as it tries to return to profitability. The struggling Indonesian airline is paying around $400,000 per month for the 737 Max 8 it has leased from BOC Aviation Ltd., according to people familiar with the matter. The state-owned carrier pays on average $200,000 a month for its existing older Boeing 737-800 fleet, the people said, asking not to be identified discussing details that are private.
Business Times
7 days ago
- Business
- Business Times
Trump's trade deal pushes Garuda to learn to love 737 Max again
[JAKARTA] Five months after a Boeing 737 Max aircraft operated by Lion Air crashed into the Java Sea in 2018, Indonesian flag carrier Garuda Indonesia tried to cancel its remaining order for the same model. Now, the country is working to revive that deal as it seeks to forge favourable ties with US President Donald Trump's administration. Trump announced in a social media post on Tuesday (Jul 15) that Indonesia will order 50 aircraft, including 'many' of Boeing's larger 777 planes. While Trump did not disclose a buyer, Garuda chief executive officer Wamildan Tsani Panjaitan had previously said he's in talks to buy 50 to 75 Boeing aircraft, including 737 Max and 787-9 Dreamliner models. The accord points to the intertwined political and economic interests whenever Trump negotiates with foreign leaders. The US President has previously announced aircraft purchases while visiting countries including Qatar, or when he's hammered out trade agreements with the likes of Vietnam or the UK. In Indonesia's case, Trump said he got the deal over the line in direct negotiations with President Prabowo Subianto during a phone call. The dilemma for Boeing is how to restore or expand the existing 49-jet Max order without leaving Garuda in a financial and strategic bind. The airline is already having trouble keeping its existing fleet airworthy, with at least 15 jets grounded as recently as May, as it struggles to make maintenance payments. At the same time, the state-owned carrier, alongside the Danantara sovereign wealth fund that owns Garuda, is under pressure to move quickly with an announcement to please Trump, according to people familiar with the discussions. The airline and Boeing do not yet have an agreement on the models and quantities that would typically be in such an announcement, said the sources, who asked not to be identified discussing private matters. Boeing referred any questions to Garuda. The airline and its owner did not immediately respond to requests for comment. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up On its own, Garuda does not even have the funds to finance the earlier 737 Max agreement, the sources said. That may prompt Danantara to step in by providing some sort of guarantee or a shareholder loan similar to the US$405 million it put forward last month, the sources said. Garuda may receive between US$800 million and US$1.2 billion more from Danantara to assist with payments to maintenance and leasing companies, they added. As a result, any plane deal could be structured as a purchase while the parties discuss financing options with Danantara and lessors for a later stage, the sources said. But given the weighty political implications, Garuda may feel pressure to agree to a deal under terms it does not necessarily favour and with jets it does not actually need, one of the sources said. Trump is known to combine state visits with tariff announcements to flex his deal-making skills. During his tour of the Middle East, he announced an aircraft accord in every country he visited, including a record plane purchase by Qatar Airways. Not all of those transactions are necessarily what they appear to be. Trump has previously announced inaccurate sizes for accords, wrong numbers of purchased jets or has mixed up aircraft types. He's also presented old agreements as new ones. Some deals that were announced during his first term meanwhile, have since fallen through. At this point, Garuda only operates eight older 777-300 aircraft, raising the question of why the airline would want to buy Boeing's yet-to-be-certified successor in large quantities, as Trump has suggested. The earlier 737 Max order still sits on Boeing's books under a special US accounting category for at-risk deals that are not likely to materialise, the sources said. The state-owned carrier sank back into the red in 2024 after an almost US$10 billion debt restructuring failed to revive its fortunes. That performance is in contrast to its peers in the region that are profitable as they benefit from a rebound in travel demand after the pandemic. BLOOMBERG
