More carmakers caught in headlights of VW engine-rigging scandal

More carmakers caught in headlights of VW engine-rigging scandal
Volkswagen has admitted it installed illegal software into 11 million 2.0 liter and 3.0 liter diesel engines worldwide (AFP Photo/Josh Edelson)

Volkswagen emissions scandal

Iran's 'catastrophic mistake': Speculation, pressure, then admission

Iran's 'catastrophic mistake': Speculation, pressure, then admission
Analsyts say it is irresponsible to link the crash of a Ukraine International Airline Boeing 737-800 to the 737 MAX accidents (AFP Photo/INA FASSBENDER)

Missing MH370 likely to have disintegrated mid-flight: experts

Missing MH370 likely to have disintegrated mid-flight: experts
A Malaysia Airlines Boeing 777 commercial jet.

QZ8501 (AirAsia)

Leaders see horror of French Alps crash as probe gathers pace

"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy, Recalibration Lectures, God / Creator, Religions/Spiritual systems (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it), Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse), Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) - (Text version)

“… The Shift in Human Nature

You're starting to see integrity change. Awareness recalibrates integrity, and the Human Being who would sit there and take advantage of another Human Being in an old energy would never do it in a new energy. The reason? It will become intuitive, so this is a shift in Human Nature as well, for in the past you have assumed that people take advantage of people first and integrity comes later. That's just ordinary Human nature.

In the past, Human nature expressed within governments worked like this: If you were stronger than the other one, you simply conquered them. If you were strong, it was an invitation to conquer. If you were weak, it was an invitation to be conquered. No one even thought about it. It was the way of things. The bigger you could have your armies, the better they would do when you sent them out to conquer. That's not how you think today. Did you notice?

Any country that thinks this way today will not survive, for humanity has discovered that the world goes far better by putting things together instead of tearing them apart. The new energy puts the weak and strong together in ways that make sense and that have integrity. Take a look at what happened to some of the businesses in this great land (USA). Up to 30 years ago, when you started realizing some of them didn't have integrity, you eliminated them. What happened to the tobacco companies when you realized they were knowingly addicting your children? Today, they still sell their products to less-aware countries, but that will also change.

What did you do a few years ago when you realized that your bankers were actually selling you homes that they knew you couldn't pay for later? They were walking away, smiling greedily, not thinking about the heartbreak that was to follow when a life's dream would be lost. Dear American, you are in a recession. However, this is like when you prune a tree and cut back the branches. When the tree grows back, you've got control and the branches will grow bigger and stronger than they were before, without the greed factor. Then, if you don't like the way it grows back, you'll prune it again! I tell you this because awareness is now in control of big money. It's right before your eyes, what you're doing. But fear often rules. …”

Showing posts with label Aviation. Show all posts
Showing posts with label Aviation. Show all posts

Friday, November 18, 2022

Three sentenced to life for flight MH17 downing

 Yahoo – AFP, Danny KEMP, November 17, 2022 

A Dutch court on Thursday sentenced three men to life imprisonment over the downing of Malaysia Airlines flight MH17 over Ukraine in 2014, in the early stages of a war that eight years later would put the world on edge. 

Russians Igor Girkin and Sergei Dubinsky and Ukrainian Leonid Kharchenko were found guilty in absentia of murdering all 298 people on board and of bringing down the Boeing 777 with a Russian-supplied missile. A fourth man was acquitted. 

Moscow slammed the "scandalous" verdict as politically motivated, while Ukraine's President Volodymyr Zelensky -- battling a full-scale Russian invasion after years of low-level fighting in the east -- praised it as "important". 

Relatives of MH17 victims blinked away tears as the verdicts were read out in a courtroom packed with families who had travelled from around the world for the end of the two-and-a-half-year trial. 

"The court calls the proven charges so severe that it holds that only the highest possible prison sentence would be appropriate," head judge Hendrik Steenhuis said.


 "Imposing these sentences cannot take away the pain and suffering, but there's hope that today clarity has been provided about who is to blame." 

But none of the suspects was at the high-security court on the outskirts of Schiphol Airport, where the doomed plane took off, after Russia refused to extradite them. 

'Justice has spoken'

The trial represents the end of a long search for justice for the victims of the disaster, who came from 10 countries, including 196 Dutch, 43 Malaysians and 38 Australians. 

"Justice has spoken. We wanted justice to be done and that happened, in a very well-balanced verdict," Piet Ploeg, chairman of the MH17 foundation, who lost his brother, sister-in-law and nephew, told AFP. 

"The role of Russia has been very clearly confirmed by the court." 

Flight MH17 from Amsterdam to Kuala Lumpur was cruising at 33,000 feet (10,000 metres) over war-torn eastern Ukraine when a BUK missile exploded near the cockpit on July 17, 2014, tearing the plane apart. 

The crash triggered global outrage and sanctions against Moscow, with Ukraine's famed sunflower fields littered with bodies and wreckage. Some victims, including children, were still strapped into their seats. 

Judges found Girkin, Dubinsky and Kharchenko could all be held responsible for the transport of the missile from a military base in Russia and deploying it to the launch site -- even if they did not pull the trigger. 

There was not enough evidence to show the involvement of Oleg Pulatov, the only suspect to have legal representation during the trial, they said. 

All the suspects were members of the Donetsk People's Republic, an armed group fighting Ukraine's government that judges ruled was directly controlled by Russia. 

'Ample evidence'

Girkin, 51, a former Russian spy who became the so-called defence minister of the DPR, was in regular contact with Moscow, particularly over the return of the missile after the tragedy, the court ruled.  

Kharchenko, 50, who allegedly led a separatist unit, received direct orders from Dubinsky, 60, who has also been tied to Russian intelligence, to escort the missile to the final launch site, the court ruled. 

The defendants had apparently intended to shoot down a Ukrainian military plane rather than a civilian jet but that did not affect their guilt, the judges said. 

Russia's continued denials that it controlled the DPR meanwhile meant the defendants could not claim immunity from prosecution as formal combatants, they added. 

The court ruled there was "ample evidence" to show the plane was brought down by the missile, and ruled out "alternative scenarios" suggested by the defence, including that it was shot down by a Ukrainian fighter jet. 

The BUK missile had been identified as coming from the 53rd Anti-Aircraft Missile Brigade from Kursk in Russia, prosecutors said. 

'Unprecedented pressure'

Moscow has denied all involvement in the crash, and on Thursday it accused the Dutch court of giving its verdict under "unprecedented pressure" from politicians and the media. 

The Russian foreign ministry said the trial could go down history as "one of the most scandalous in the history of legal proceedings with its extensive list of oddities, inconsistencies and dubious arguments of the prosecution". 

Ukraine's Zelensky said on Twitter that "holding the instigators to account is crucial too because a sense of impunity leads to new crimes". 

The United States welcomed the verdict as "an important moment in ongoing efforts to deliver justice for the 298 individuals who lost their lives". 

Dutch Prime Minister Mark Rutte said the convictions were "not the end", while NATO chief Jens Stoltenberg they were an "important day for justice and accountability".

Thursday, October 29, 2020

Liberty flying car cleared for road use, talks ongoing for aviation permit

DutchNews, October 28, 2020 

Photo: Pal-V

A flying car developed by Dutch company Pal-V has been cleared for use on the Dutch roads by vehicle licensing agency RDW. 

Work started on designing the Liberty in 2012 and it has now passed stringent road admission tests allowing a prototype to drive on public roads for further trials.

‘We have been cooperating with the road authorities for many years to reach this milestone,’ chief technical officer Mike Stekelenburg said. 

‘The excitement you feel in the team is huge. It was very challenging to make a “folded aircraft” pass all road admission tests. The trick in successfully making a flying car is to ensure that the design complies with both air and road regulations.’ 

Work on winning aviation certification with the European safety agency Easa started in 2015 and the company expects to get the green light in 2022. 

‘Over 1200 test reports need to be completed before the final 150 hours of flight testing can take place. After this the deliveries to customers will start,’ the company said in a statement. 

The Liberty is a two-seater vehicle which converts in five to 10 minutes into a gyrocopter, which can land and take off vertically in a small space. 

According to the Financieele Dagblad, some 30 people in the Netherlands have already ordered and paid for a flying car, at a cost of €499,000 each. Owners must also pass their flying certificate to be able to use the vehicle in the air.

Monday, September 14, 2020

Dutch minister says survival of Air France-KLM 'not a given'

Yahoo – AFP, September 13, 2020

Many Air France-KLM planes have been grounded for months because of
the coronavirus

The survival of the Air France-KLM group is not guaranteed if the economic crisis caused by the coronavirus pandemic continues, Dutch Finance Minister Wopke Hoekstra warned Sunday.

France and the Netherlands, each with a 14-percent share of the group, have poured out billions of euros in aid to help national carriers that virtually came to a standstill in the first half of 2020.

"It's not a given," Hoekstra said in an interview with Dutch public television NPO, stressing the need to cut costs.

In the spring, Paris gave Air France seven billion euros ($8.3 billion) in loans, and The Hague granted KLM similar aid worth 3.4 billion euros.

The bailout for KLM must be accompanied by "a comprehensive restructuring plan" as well as commitments to reestablish performance and competitiveness.

Hoekstra said he had insisted in talks with KLM on the importance of changing direction.

Dutch press agency ANP said KLM has to develop a restructuring plan by October 1.

Air France-KLM suffered a loss of 2.6 billion euros in the second quarter as air traffic virtually shut down because of the coronavirus pandemic.

This followed a loss of 1.8 billion euros in the first quarter.

Air France said it would cut almost 7,600 jobs by the end of 2022 and KLM up to 5,000 jobs.

Realted Article:


Tuesday, August 4, 2020

Virgin seeks to revive supersonic commercial flight -- but faster

France24 – AFP, 3 August 2020

Virgin Galactic unveiled its design for a supersonic aircraft and announced a
partnership with Rolls-Royce to build the engine Handout Virgin Galactic/
The Spaceship Company/AFP

Washington (AFP) - Space tourism company Virgin Galactic on Monday announced a partnership with engine-maker Rolls-Royce to build a supersonic commercial airplane that flies at three times the speed of sound.

The aircraft would travel at Mach 3 -- rather than the Mach 2 speed of Concorde, the pioneering jet that operated from 1976 to 2003.

Any new supersonic plane would have to solve the problems that doomed Concorde, in particular noise and fuel consumption.

"We are excited to... unveil this initial design concept of a high speed aircraft, which we envision as blending safe and reliable commercial travel with an unrivalled customer experience," said George Whitesides, chief space officer at Virgin Galactic.

The aircraft's draft design showed a plane with a triangular "delta wing" carrying between nine and 19 passengers at an altitude of more than 60,000 feet, or 18,000 meters -- about twice as high as normal commercial flight.

The plane would take off and land at existing airport runways.

Virgin Galactic said its team would "work to address key challenges in thermal management, maintenance, noise, emissions, and economics that routine high speed commercial flights would entail."

The company signed a non-binding memorandum of understanding with Rolls-Royce to develop an engine for the aircraft.

Virgin Galactic's main focus this far has been its part-plane, part-rocket craft that is being developed to carry tourists to the edge of space.

It is awaiting more test flights, and no launch date for commercial journeys has been set.

The company, which was listed on the stock exchange last year, is seeking to diversify and in May it announced an agreement with NASA to develop high-speed technology.

NASA has also been working for decades on a silent supersonic experimental aircraft, the X-59. A first prototype is being built by Lockheed-Martin in California.

The project hopes to make the supersonic boom -- the explosion caused by crossing the sound barrier -- almost inaudible on the ground.

Friday, July 10, 2020

Back clean energy post-virus, UN chief urges leaders

Yahoo - AFP, July 9, 2020

Guterres urged governments to make climate-friendlier action a condition for
bailing out airlines and others (AFP Photo/KARIM SAHIB)


Paris (AFP) - United Nations chief Antonio Guterres on Thursday urged world leaders to favour clean energy solutions as they pour money into their economies to save them from a coronavirus-induced meltdown.

Governments should exit coal, stop subsidising other fossil fuels, and pressure polluting industries to clean up their act in exchange for bailing them out, the UN Secretary-General told an International Energy Agency conference by video link.

"Today I would like to urge all leaders to choose the clean energy route for three vital reasons -- health, science and economics," Guterres said.

"Bailout support to sectors such as industry, aviation and shipping should be conditioned on alignment with the goals of the Paris Agreement," he said, referring to the 2015 treaty that commits signatories to capping global warming at 2 degrees above pre-industrial levels.

"We need to stop wasting money on fossil fuel subsidies and place a price on carbon," Guterres said, adding that "coal has no place in COVID-19 recovery plans".

He also called on investors "to demand that companies reveal transition plans to reach net zero emissions" and said that renewables offered "three times more jobs than the fossil fuel industry".

Governments across the world have pledged unprecedented sums to support their economies to cope with the fallout from COVID-19, with many politicians and NGOs calling for green policies to become an integral part of the spending plans.

The European Parliament, for example, has urged EU governments to put "the green deal at the core" of their proposed 750-billion-euro recovery plan.

In Germany, where the government has agreed to rescue flagship airline Lufthansa, the environment minister said that climate-friendlier policies by the airline would be part of the deal.

In neighbouring Austria, the government made "necessary measures in terms of climate protection" a condition for bailing out Austrian Airlines.

Related Articles:


  • Stagnation of the current US Politics: Compassioned (US) leaders will arise in the future
  • Shortage of fresh/drinking water: Invention to make salt from salt water magnetic and remove it with water desalination process in high volumes
  • Pollution on Earth: 1 - Stop killing the environment! / 2 - The rise of temperature on Earth is “temporary” and is part of the "regular" Watercycle.
  • Replacement of current fossil energy source: Use of magnetics based (small/big) engines to produces electricity / free energy
  • Plastic pollution in the oceans: Invention to remove the plastics gradually from the oceans


20TH KRYON SUMMER LIGHT CONFERENCE, US (7), June 2-4, 2017 (Kryon Channelling by Lee Carroll) (Text version "The State of the Earth")

"....  A mini ice age is coming. "Kryon, isn't that doom for the planet?"  Many have seen the artist's rendering of major earth cities under ice and all of the other things that go very well with science fiction movies. That's simply a painting of someone's doom scenario, not reality based in the history of the cycle. If you want to know what a mini ice age is like, just flash back in history and study what took place in about 1650. That was a mini ice age. Due to the change in the Gulf Stream (the ocean), the river Thames froze in London. Dear ones, it was cold, but it did not doom the planet. That's a mini ice age.

That's what you're facing, and I'll say it again. If you live in a cold climate, heed this advice: It's going to get colder. Get off the grid! Within the next 15 years, find a way of producing electricity independently or in smaller groups. This can be done neighborhood-wide or separately in homes. You're going to need this, dear ones, because the grid as it exists right now all over the world is not prepared for this coming cold, and the grid will fail. That's not doom and gloom, that's just practical, commonly known information. Your electricity infrastructure is delicate, too delicate. Prepare for a cold spell that may last for a couple of decades. That's all it is. Technology is racing forward to allow this. Don't let your politics get in the way of your survival. ..."

"...  This is controversial. The planet can't just "change the water". It does it instead with a "reboot of life in the ocean" using the water cycle. Watch for evidence of this as it occurs, and then remember this channel. This weather cycle is to refresh the life in the ocean so that everyone on the planet will have needed food from the ocean. Gaia does this by itself, has done it before, and it does it for a reason - so it will not stagnate.

Dear ones, indeed, you have put compromising things into the air and the water, but it has not caused this cycle. We have said for a very long time, stop killing the environment! The reason? It's going to kill you, not Gaia. Gaia is spectacularly resilient and will survive anything you do. However, it is you who may not survive if you continue polluting. All this is starting to change with your awareness, and you're starting to see this and move with it. But Humans are not causing the current weather shift. This will be known eventually.

What is happening has happened before, and it's almost like a reboot for the oceans and it carries a lot of dichotomous events. You're going to see reports of a dying ocean, but at the same time you're going to see unusual reports of too many fish and other sea life in places that were supposed to have a decline. You're going to see the life cycle of the ocean itself start to change and reboot.

The chief player in this renewal is a place you would not expect: Antarctica. I want you to watch for magic in Antarctica. It has always been the core of the refreshing of microbes and other kinds of life in your oceans and it's especially active during these mini ice ages. The process will cause currents under the sea to be filled with new life, delivering it to both hemispheres almost like an under-sea conveyor belt. ..."


"Recalibration of Free Choice"– Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth, 4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical) 8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version)

“… 4 - Energy (again)

The natural resources of the planet are finite and will not support the continuation of what you've been doing. We've been saying this for a decade. Watch for increased science and increased funding for alternate ways of creating electricity (finally). Watch for the very companies who have the most to lose being the ones who fund it. It is the beginning of a full realization that a change of thinking is at hand. You can take things from Gaia that are energy, instead of physical resources. We speak yet; again about geothermal, about tidal, about wind. Again, we plead with you not to over-engineer this. For one of the things that Human Beings do in a technological age is to over-engineer simple things. Look at nuclear - the most over-engineered and expensive steam engine in existence!

Your current ideas of capturing energy from tidal and wave motion don't have to be technical marvels. Think paddle wheel on a pier with waves, which will create energy in both directions [waves coming and going] tied to a generator that can power dozens of neighborhoods, not full cities. Think simple and decentralize the idea of utilities. The same goes for wind and geothermal. Think of utilities for groups of homes in a cluster. You won't have a grid failure if there is no grid. This is the way of the future, and you'll be more inclined to have it sooner than later if you do this, and it won't cost as much…

Water

We've told you that one of the greatest natural resources of the planet, which is going to shift and change and be mysterious to you, is fresh water. It's going to be the next gold, dear ones. So, we have also given you some hints and examples and again we plead: Even before the potentials of running out of it, learn how to desalinate water in real time without heat. It's there, it's doable, and some already have it in the lab. This will create inexpensive fresh water for the planet. 

There is a change of attitude that is starting to occur. Slowly you're starting to see it and the only thing getting in the way of it are those companies with the big money who currently have the old system. That's starting to change as well. For the big money always wants to invest in what it knows is coming next, but it wants to create what is coming next within the framework of what it has "on the shelf." What is on the shelf is oil, coal, dams, and non-renewable resource usage. It hasn't changed much in the last 100 years, has it? Now you will see a change of free choice. You're going to see decisions made in the boardrooms that would have curled the toes of those two generations ago. Now "the worst thing they could do" might become "the best thing they could do." That, dear ones, is a change of free choice concept. When the thinkers of tomorrow see options that were never options before, that is a shift. That was number four.”



New Mini Ice Age

"The weather you have today, and all the alarming attributes of it, is a scenario of what was scheduled to happen on Earth anyway. I review again that the weather changes you are seeing prophesied by myself, 21 years ago, are not a surprise. The changes are not caused by the pollutants you put in the air. You call it global warming and that's a nice phrase, and perhaps that will get you to put less pollutants in the air – a very good thing. But what you are seeing in the weather shift today was not caused by Humans putting things into the air. It would have happened anyway in about 300 years."

"We've called this process the water cycle, since it's all about water, not about air. The water is the predominant attribute of Gaia and of the weather cycle you're seeing. More predominant is the temperature of it. The cycle is ice to water and water to ice, and has been repeated on this planet over and over and over. It is not new. It is not exceptional. It is not frightening. But it's a cycle that modern humanity has not seen before, and it's a long cycle that is beyond the life span of a Human Being. Therefore, it tends to be overlooked or not seen at all !"

"In the days of the Lemurians, the water level of the Pacific Ocean was almost 400 feet lower, and that's only 50,000 years ago. [Kryon invites science to check this out – the water level at that time.] That was a water cycle working, and the reason it was lower was due to so much of the water being stored as ice. Today you're going through another water cycle that will eventually lead to cooling. The last one was in the 1400s."

"Science sees that at about 1650. As mentioned, they are so slow there is no remembrance that a Human has of them except in past writings and in the rings of the trees. The time span of the changes is so great that environmental record keeping does not exist in the form that it does today. But you can still look at the rings of the trees and at the striations of the rocks and can generally figure out that a few hundred years ago, you had a mini-ice age. Now you're going to have another one." 

Thursday, April 30, 2020

Boeing to cut staff, plane output after big Q1 loss

Yahoo – AFP, April 29, 2020

Boeing announced sweeping cost-cutting measures after reporting a first-quarter loss
of $641 million following the hit to the airline business from the coronavirus pandemic
(AFP Photo/SCOTT OLSON)

New York (AFP) - Boeing announced sweeping cost-cutting measures Wednesday after reporting a first-quarter loss of $641 million following the hit to the airline business from the coronavirus pandemic.

The aerospace giant plans to reduce its workforce by 10 percent through a combination of voluntary and involuntary layoffs and will slash production of its main commercial planes, including the 787 and 777, Chief Executive David Calhoun said in a message to employees that accompanied an earnings release.

"The aviation industry will take years to return to the levels of traffic we saw just a few months ago," Calhoun said. "We have to prepare for that."

Calhoun said the job cuts would be deeper -- more than 15 percent -- in commercial airplanes and services, as compared with defense and space systems, where the business has been more stable.

The quarterly loss of $641 million compared to profits of $2.1 billion in the year-ago period. Revenues fell 26.2 percent to $16.9 billion.

Total debt at the end of the quarter was $38.9 billion, up from $27.3 billion at the end of December.

Calhoun said the belt-tightening was needed to maintain adequate liquidity at a time its revenues are depressed, adding that the company is "exploring potential government funding options" in the wake of COVID-19.

Boeing has previously called for $60 billion in government support for the US aerospace industry. Federal relief legislation includes $17 billion aimed at Boeing. Calhoun has previously balked at the idea of the US taking a stake in Boeing.

The loss reflected "abnormal production costs" connected to the temporary suspension of Puget Sound manufacturing operations due to COVID-19 and due to the suspension of production of the 737 MAX, which remains grounded following two deadly crashes.

Boeing said the pandemic crisis has hit demand for new planes and services, with airlines delaying purchases of jets, slowing delivery schedules and deferring elective maintenance.

It will cut production of the 787 from 14 per month to 10 per month in 2020 and gradually to seven per month by 2022.

Boeing also will trim output on the 777 and lower its targets for the 737 MAX.

"We have done a tremendous job of increasing our production rates and services offerings in recent years," Calhoun said. "But the sharp reduction in our demand for our products and services over the next several years simply won't support the higher levels of output."

Boeing shares jumped 4.1 percent to $136.36 in pre-market trading.

Wednesday, April 29, 2020

Icelandair Cuts 2,000 Staff Over Coronavirus Impact

Barron’s – AFP, Alexander Klein, April 28, 2020

Icelandic airline Icelandair announced deep job cuts due to the effects of the
novel coronavirus crisis

Icelandic airline Icelandair said Tuesday it would lay off about 2,000 of its staff as the COVID-19 pandemic continues to impact air travel "for the unforeseeable future."

In response to the impact, Icelandair said the company was preparing for an "extended period of minimum operations."

The company said that "the employment of around two thousand employees will be terminated," adding that crew, maintenance and ground operations, would be most affected.

Icelandair added that the "majority of the remaining employees continue in part-time roles" and those in full-time positions would be affected by salary reductions.

"These measures are very painful yet necessary. We are facing considerable uncertainty for the unforeseeable future," Bogi Nils Bogason, CEO of Icelandair, said in a statement.

Bogason added that they hoped to be able to offer those affected employment again once markets started to recover.

In 2018, Icelandair had some 4,600 full-time employees and carried 4.4 million passengers, according to the company.

As of Tuesday, Iceland had confirmed 1,795 cases of the new coronavirus and 10 deaths.

Related Article:


Thursday, January 30, 2020

Boeing reports first loss since 1997 as MAX costs rise to $18.6 bn

Yahoo – AFP, John BIERS, January 29, 2020

Boeing reported its first annual loss in more than two decades as the lengthy
grounding of the 737 MAX weighed on revenues and added to costs (AFP Photo/
Jason Redmond)

New York (AFP) - Boeing reported its first annual loss in more than two decades Wednesday as the lengthy grounding of the 737 MAX undercut the company's revenues and exploded costs.

The aerospace giant reported a $1.0 billion loss in the fourth-quarter and a loss of $636 million for all of 2019, the company's first year in the red since 1997.

Newly-installed Chief Executive David Calhoun, who took the reins this month to stabilize the situation, pledged to turn the company around even as Boeing disclosed $9.2 billion in additional costs connected to the MAX, essentially doubling the bill from the disaster.

Some analysts had expected new costs twice as high, and despite the hefty charges, Boeing shares advanced Wednesday.

The MAX has been grounded since March following two crashes that killed 346 people that opened the doors to intense scrutiny of Boeing's safety practices, as well bruising congressional investigations which have revealed a troublesome culture at the aviation giant.

"We are committed to transparency and excellence in everything we do," Calhoun said in a statement. "Safety will underwrite every decision, every action and every step we take as we move forward."

Calhoun has been at the helm of Boeing only since January 13 after Dennis Muilenburg was ousted in December following criticism of his handling of the crisis, and immediately after a damning series of internal communications were released.

Calhoun is targeting mid-2020 to win approval from aviation regulators to resume flights on the MAX, which is seen as a realistic timeframe after Muilenburg repeatedly pushed a more optimistic schedule.

Calhoun told CNBC that he was "confident as a CEO can be" of the current timetable, adding that "we put together a schedule we think we can make."

Higher costs

The grounding of the MAX dented Boeing's earnings in multiple ways, among the most damaging of which was a halt in deliveries of new planes to customers, a major source of revenue.

Boeing revenues in the fourth quarter plunged 36.8 percent to $17.9 billion, while revenues for all of 2019 dropped 24.3 percent to $76.6 billion.

The crisis also prompted the manufacturer to first reduce and then halt production of the MAX.

Boeing said Wednesday the changes in the production schedule added $2.6 billion in costs connected to airplane deliveries, plus another $4 billion in "abnormal production costs," which are primarily in 2020 and associated with the suspension of the MAX plus a "gradual resumption" of production.

Chief Financial Officer Greg Smith said MAX production will be at "low rates" in 2020, with increases "over the next few years."

The company set aside $2.6 billion to compensate airlines that have been forced to cancel thousands of flights due to grounded MAX planes and undelivered aircraft.

With these costs and expenses disclosed previously, the total impact on Boeing is $18.6 billion.

Ripple effects

The MAX crisis has also weighed on numerous suppliers, such as Spirit AeroSystems, which announced earlier this month that it would lay off 2,800 employees in Kansas due to the production stoppage.

And General Electric, which builds engines for the MAX, said the crisis lowered cash flow by $1.4 billion for 2019.

Boeing also announced Wednesday that it would again cut back production of the 787 Dreamliner, a top-selling plane that has supported revenues during the protracted 737 MAX grounding.

The aerospace giant plans to trim production to 10 airplanes a month in early 2021 through 2023 based on the "near-term market outlook," Boeing said.

The company in October had dropped production to 12 a month from 14 due to lower orders from China.

A note from JPMorgan Chase said Boeing's charges on the MAX were "less than feared," although the company was expending cash at a faster rate than expected. Boeing has reportedly lined up $12 billion in loans, but "balance sheet management" in 2020 will be an area for questions, the note said.

In another non-MAX development, Boeing set aside $410 million to cover costs of an additional uncrewed mission after the December NASA flight did not reach the International Space Station.

"NASA is evaluating the data received during the December 2019 mission to determine if another uncrewed mission is required," Boeing said.

Boeing shares rose 2.2 percent to $323.66 in early-afternoon trading.