Boeing 747 and Airbus A380: End of the jumbos of the skies?

Jakarta Post – AFP, ALI BEKHTAOUI WITH AFP BUREAUS, July 18, 2020

In this file photograph taken on May 3, 2019, a British Airways Boeing 747
passenger aircraft prepares to land at London Heathrow Airport, west of
London. (AFP/Ben Stansall)

The Boeing 747's slow descent into retirement from commercial service just got steeper with British Airways' announcement Friday it would be pulling the jumbo jet from the skies as the coronavirus pandemic forces it to cut back operations and cut costs.

BA's announcement follows moves by a number of other airlines that have retired their 747s and their Airbus A380, another jumbo-sized four-engine jet made by Boeing's European rival.

The fact the planes have four engines means they consume more fuel, which means they can cost more to operate and cause more pollution if not full.

Who has grounded their jumbos?

Lufthansa announced in April that it is grounding five of its 32 747s and 14 A380s, saying the move was related to their higher environmental and economic footprint.

Air France, which had already planned to retire its A380s in 2022 because of their higher operating costs, also took advantage of the reduced demand for traffic due to coronavirus lockdowns to mothball them early.

Australia's Qantas also accelerated its phase out of its three 747s, and its A380s are also set to go.

Korean Air is only flying 12 out of its 23 Boeing 747s -- 11 cargo and one passenger jet, according to the airline.

Air India's four 747s are being used to fly VIPs and take part in evacuations.

America said goodbye to the Boeing 747 in December 2017, when Delta, the last US airline to use the jet, retired the aircraft.

Coronavirus to blame?

"Coronavirus is an accelerant," said Remy Bonnery, an aviation expert at Archery Consulting.

Both the 747 and A380 "are much more difficult to manage in a fleet... They are not the easiest aircrafts to fill, they consume more" fuel, he said.

Launched in 1970, Boeing's jumbo jet can transport more than 600 passengers in certain configurations. The A380 can carry up to 853.

"Even before the crisis there was a trend towards smaller and more flexible aircraft" that are less costly to operate and can be used very different types of routes, said Bonnery.

Aviation expert Sebastien Maire at Kea & Partners recently told AFP that the A380 offers airlines the lowest operating cost per seat, provided every seat is occupied.

Filling the planes was proving difficult for airlines on many routes, however.

End of the giants of the skies?

"It is clear there won't be trend towards jumbos in the coming years," said Bonnery, adding that the "manufacturers will above all focus on short-haul planes and single-aisle aircraft capable of assuring long routes."

Emirates, which has the largest fleet of A380s at 115, has said it will continue to fly the aircraft that entered service just 15 years ago.

But Emirates acknowledged that the days are numbered for jumbo jets.

Airbus has already announced it will make the final delivery of a 251st A380 next year.

Bloomberg reported earlier this month that the final 747 will roll off the assembly line in two years, but the manufacturer has yet to officially confirm when it will halt production.

There is one customer still waiting for delivery of new 747s: the White House.

Two of the latest version the aircraft, the 747-8, the largest, fastest an most fuel efficient version of the aircraft are due to made to serve as Air Force 1.

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.

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.

Boeing's new 777X airliner takes off on first flight

Yahoo – AFP, Jason REDMOND, with Christophe VOGT in Washington, January 25, 2020

The snow-covered Olympic Mountains are pictured in the background as a
Boeing 777X airplane takes off on its inaugural flight at Paine Field in Everett,
Washington in the United States on January 25, 2020 (AFP Photo/Jason Redmond)

Everett (United States) (AFP) - Boeing's new long-haul 777X airliner made its first flight on Saturday, a step forward for the company whose broader prospects remain clouded by the 737 MAX crisis.

The plane took off from a rain-slicked runway a few minutes after 10:00 am local time (1800 GMT), at Paine Field in Everett, Washington, home to Boeing's manufacturing site in the northwestern United States.

Weather conditions had already twice delayed the inaugural takeoff of the plane, which sports blue and white company colors and is emblazoned with the Boeing name.

High winds led to its postponement on Friday, and the company blamed weather for an earlier delay on Thursday, which was rainy.

"Yes!" shouted Boeing spokesman Josh Green as the plane's wheels finally lifted off the tarmac as its two powerful engines sent up huge clouds of mist.

Minutes earlier, the pilots had deployed the plane's winglets -- folding wing tips -- designed to improve the craft's fuel efficiency and make it possible for the plane, with the widest wing span ever from Boeing, to be accommodated at more airports.

A Boeing 777X airplane taxis before taking off on its inaugural flight at Paine 

Field in Everett, Washington in the United States on January 25, 2020 (AFP Photo/

Jason Redmond)

The 777X quickly disappeared into the clouds; after a flight lasting several hours, it was to land later at Boeing Field in a Seattle suburb, some 30 miles (50 kilometers) to the south.

The 777X was originally to take to the skies for the first time in mid-2019, but that was postponed due to problems with the new engine, manufactured by General Electric, and difficulties with the wings and software.

Saturday's flight was to be the first of a series of in-flight tests. If they go well, Boeing will officially file for approval from the Federal Aviation Administration (FAA).

With Boeing facing a crisis over its top-selling 737 MAX following two deadly crashes, the 777X is supposed to compete in the long-haul aircraft market with the A350 made by rival European aircraft manufacturer Airbus.

Major airlines including Emirates, Lufthansa, Cathay Pacific, Singapore Airlines and Qatar Airways have placed some 340 orders for the 777X.

The first deliveries of the new model, with maximum capacities of 384 to 426 passengers depending on the configuration, are not expected before early 2021, instead of mid-2020 as initially planned.

Boeing employees and others watch as a Boeing 777X airplane taxis before taking 

off on its inaugural flight at Paine Field in Everett, Washington in the United States 

on January 25, 2020 (AFP Photo/Jason Redmond)

The aircraft encountered significant problems during pressurization tests in September.

Business down

Boeing's business has also been weakened by a lack of firm orders from Chinese airlines for its 787 Dreamliner, which is expected to see production cuts.

The 777X has a range of 16,200 to 13,500 kilometers depending on its configuration and the number of passengers aboard, according to the Boeing website. It is also extremely fuel-efficient, an important consideration at a time when passengers are increasingly concerned about carbon emissions.

Its list price is between $410 million to $442 million, though customers often negotiate discounts.

US air safety regulators could clear the 737 MAX to return to service before mid-year, a person close to the process said Friday.

A pilot gives a thumbs up as he taxis a Boeing 777X airplane before taking off on 

its inaugural flight at Paine Field in Everett, Washington in the United States on 

January 25, 2020 (AFP Photo/Jason Redmond)

The plane has been grounded since March following two deadly crashes, in Ethiopia and Indonesia. On Tuesday, Boeing announced that it did not expect to win regulatory approval until mid-2020.

Boeing suspended production of the MAX this month but Chief Executive David Calhoun said this week the company plans to begin ramping up production of the model in anticipation of winning regulatory approval to restart service.

Calhoun began as CEO earlier in January following the ouster of Dennis Muilenburg, who tenure was rocked by the MAX crisis which led to deteriorating relations between the company and the FAA.

Calhoun aims to turn the company around, and has highlighted restoring Boeing's reputation with regulators, customers and other stakeholders as an imperative.

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

Yahoo – AFP, Stuart WILLIAMS, January 11, 2020

An Iranian holds a newspaper with a picture of the debris of the Ukrainian plane
that crashed in Tehran on January 8, 2020, outside a news stand in the Islamic
republic's capital (AFP Photo/ATTA KENARE)

Paris (AFP) - When a Boeing passenger jet crashed in Iran early on January 8, speculation immediately swirled that the only plausible explanation was that it had been shot down by Iran.

The crash of the Ukraine International Airlines (UIA) flight came hours after Tehran had launched a barrage of missiles at bases housing American troops in Iraq, retaliating for the killing of commander Qasem Soleimani in a US strike.

Immediately, theories multiplied arguing that Tehran's air defence system, on high alert for possible US retaliation, may have been triggered by accident.

Western leaders cited intelligence pointing to an accidental strike by Iran. Verified video images later emerged showing a missile striking a plane.

From Wednesday to Friday, Iranian officials repeatedly insisted that the plane had not been shot down. Early on Saturday however, the Islamic republic admitted that the plane had been hit by a short-range missile in what President Hassan Rouhani described as a "catastrophic mistake".

Ukrainian passenger jet crash in Iran (AFP Photo)

What happened on January 8?

The Boeing 737-800NG for UIA's flight PS752 between Tehran and Kiev took off from Imam Khomeini International Airport at 6:12 am local time.

Although there was no distress message from the pilot, the plane had begun to turn back for the airport before crashing at 6:18 am, said the Iranian Civil Aviation Organization. The aircraft came down near Sabashahr on the outskirts of Tehran.

There were 10 departures from Tehran airport that day before flight PS752, according to the Flight Radar 24 monitoring site. That raised questions as to why air traffic had not been halted given the situation.

All 176 people on board the flight PS752 -- mainly Iranians and Canadians, including dual nationals, but also Ukrainians, Afghans, Britons and Swedes -- were killed.

Canadian Prime Minister Justin Trudeau was the first major leader to publicly 

state Iran could be to blame for the plane crash (AFP Photo/Dave Chan)

How did pressure grow?

Prime Minister Justin Trudeau was the first major leader to publicly state Iran could be to blame. He said Canada had intelligence from multiple sources "including our allies and our own intelligence" that indicated "the plane was shot down by an Iranian surface-to-air missile."

"This may well have been unintentional," Trudeau added.

His language was echoed by other Western leaders including Dutch Premier Mark Rutte, NATO chief Jens Stoltenberg and British Prime Minister Boris Johnson.

US President Donald Trump said he had "suspicions" as "somebody could have made a mistake", and US Secretary of State Mike Pompeo then said the United States believed it was "likely" that an Iranian missile downed the airliner.

The New York Times also said it had verified a video appearing to show a missile hitting a plane at night above the Tehran suburb of Parand, west of the airport.

What did Iran initially say?

For three days, Iranian officials refused to countenance any suggestion that one of its missiles had brought down the plane.

The country's civil aviation chief Ali Abedzadeh said that one "thing is for certain, this airplane was not hit by a missile", arguing that it would have exploded immediately if hit by a missile.

Experts questioned that claim, arguing that such missiles explode before coming into contact with the target.

This handout photograph taken and released on January 11, 2019, by The 

National Security and Defense Council of Ukraine, shows people analysing 

the remains of the Ukraine International Airlines plane Boeing 737-800 that

crashed outside Tehran (AFP Photo/STR)

What does Iran now admit?

In an announcement early Saturday that took many experts by surprise, Iran admitted it had "unintentionally" shot down the jet after a missile operator mistook the plane for a cruise missile.

Tehran said its systems had been on high alert for American retaliation in the hours after the Iranian strikes on bases housing US troops in Iran.

"He had 10 seconds to decide," the aerospace commander of Iran's Revolutionary Guards Brigadier General Amirali Hajizadeh said of the operator, who he insisted had "acted alone".

"He could have decided to strike or not to strike and under such circumstances he took the wrong decision."

Rouhani called it an "unforgivable mistake", vowed that compensation would be paid to the families while those responsible would be prosecuted.

What kind of missile was used?

Unverified images posted on social media show the remains of a Russian-made Tor M-1 missile but Tehran has yet to give details on the kind of weaponry used.

Tehran received 29 such air defence systems from Moscow under a $700 million contract signed in 2005, a deal that caused considerable unease in the West.

The Bellingcat open-source analytics website has said the origin of the images is yet to be determined, and the people who captured the images have not come forward.

Ukraine's President Volodymyr Zelensky, pictured on January 9, 2020 in a 

presidential press handout photo placing flowers at a memorial for the victims 

of the Ukraine International Airlines crash in Tehran, has toughened his stance 

on Iran (AFP Photo/HO)

What does Ukraine want now?

Ukrainian President Volodymyr Zelensky, initially wary of blaming Tehran, has toughened his line since Tehran's admission.

After Zelensky spoke to Rouhani later Saturday, the Ukrainian presidency said that Zelensky asked Tehran to allow the bodies of the 11 Ukrainian victims to be repatriated "by January 19".

He added that Ukrainian diplomats had produced a list of steps to be taken to "resolve the compensation issue".

Despite the three days of denial from Tehran, some have compared its reaction favourably to that from Moscow over the crash of the Malaysia Airlines flight shot down over eastern Ukraine in 2014.

Although the Dutch-led Joint Investigation Team says a Russian-made BUK missile fired by pro-Russian separatists was to blame, Russia still denies any involvement.

Iranian police dispersed students chanting "radical" slogans during a gathering in Tehran to honour the 176 people killed when an airliner was mistakenly shot down, Fars news agency reported https://t.co/jtSIrcZiX1

— AFP news agency (@AFP) January 11, 2020

Ukraine plane crash another challenge for Boeing

Yahoo – AFP, John BIERS, January 8, 2020

Rescue teams work amidst debris after a Ukrainian plane carrying 176 passengers
crashed near Imam Khomeini airport in the Iranian capital Tehran early in the morning
on January 8, 2020, killing everyone on board (AFP Photo)

New York (AFP) - The latest tragic plane crash involving another Boeing aircraft adds to the travails facing the company after its 737 MAX was grounded nearly a year ago following two deadly crashes.

Details were limited Wednesday about the crash of a Ukraine International Airlines plane, a Boeing 737-800, near Tehran that killed 176 people.

Yet the latest bad news involving a Boeing plane weighed on company shares, which were down 1.3 percent at $332.77 in early-afternoon trading.

The incident could hardly have come at a worse time for Boeing, which is still reeling from two MAX crashes that killed 346 people, causing its best-selling plane to be grounded worldwide, and exposing the company to withering criticism over its handling of the crisis.

Paul Njoroge of Canada, who lost his family in the Ethiopian Airlines MAX crash, said the UIA crash "brought a chill in my entire body" as he recalled the MAX crash.

"The 737-800, the predecessor to the 737-MAX... has been seen to be reliable over the years," Njoroge said in a statement released by his law firm.

"However, any in-built technical issues cannot be tolerated. Could the crash be tied to the crippled culture within Boeing? That is a hypothesis that should be analyzed."

The latest tragic plane crash involving a Boeing model different from the grounded 

MAX adds to the travails facing the company after two deadly crashes (AFP Photo/

MANDEL NGAN)

Cause of crash unknown

However, aviation analysts stressed that the two planes are different models and the crashes should be considered separately.

Richard Aboulafia of the Teal Group, a research consultancy focused on aviation and defense, said the UIA crash is "tragic and the optics aren't good" for Boeing, but the 737-800 model has an excellent record.

The airline said the aircraft involved in the crash was built in 2016 and had been checked only two days before the accident. It was Kiev-based UIA's first fatal crash.

There was no immediate indication of foul play and Ukrainian President Volodymyr Zelensky warned against "speculating" on the cause of the disaster.

A statement posted on the website of the Ukrainian embassy in Iran initially said the crash was caused by an engine malfunction and ruled out an act of terror, but it was later edited to say that all information will now be provided by an official commission.

Aboulafia said early statements blaming the crash on technical difficulties reflected "an unbelievable degree of unprofessionalism" since they did not have access to the plane's black box or pilot communications.

Scott Hamilton of Leeham News said reports linking the UIA crash to the MAX crisis "are irresponsible," adding that the 737-800 model is "a highly reliable aircraft with thousands in service around the world."

Hamilton said crash investigations routinely include studying the possibility of pilot error, maintenance error, technical error, outside factors such as weather and terrorism and foreign object ingestion.

Citing a 2018 Southwest Airlines incident in which an engine exploded, killing a passenger, Hamilton said the plane's engine "has a history of uncontained failures that must be considered."

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)

Investigation faces roadblocks

Hostilities between Washington and Tehran could impede the probe, which comes as President Donald Trump vowed additional sanctions on Iran following Iranian missile strikes on US troop bases in Iraq, which was in retaliation for Washington's killing of an Iranian general.

Under a protocol governing international aviation investigations, Iran should lead the review, but the country that manufactured the aircraft and the country of the airline that operated the plane also should have representatives involved in the probe.

Normally the US National Transportation Safety Board, the body charged with investigating air accidents, would be involved as Boeing is based in the United States, and likely would rely on experts from the manufacturer.

The NTSB is monitoring developments around the crash and "following its standard procedures for international aviation accident investigations, including long-standing restrictions under the country embargoes," an NTSB spokesman said.

"As part of its usual procedures, the NTSB is working with the State Department and other agencies to determine the best course of action."

Boeing called the crash a "tragic event" on Twitter and said, "we are ready to assist in any way needed."

A US official said, "the US would have to be invited by the Iranians to participate."

The head of Iran Civil Aviation Organisation, Ali Abedzadeh, said while the Ukrainians were free to participate in the probe into the crash, "we will not give the black boxes to the manufacturer (Boeing) and the Americans," according to the Mehr news agency.

Boeing ousts Muilenburg, names Chair David Calhoun as CEO

Yahoo – AFP, December 23, 2019

Boeing replaced Dennis Muilenburg as CEO amid the protracted 737 MAX
crisis (AFP Photo/ALEX WONG)

New York (AFP) - Boeing on Monday replaced its embattled chief executive, Dennis Muilenburg, saying a change was necessary as it attempts to restore its reputation amid the protracted 737 MAX crisis.

Boeing named board Chairman David Calhoun as chief executive and president, saying the company needed to "restore confidence" and "repair relationships with regulators, customers and all other stakeholders."

The company pledged to "operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers."

The aerospace giant's financial picture remains clouded following the global grounding of the MAX in March after two deadly crashes.

The move comes a week after Boeing took the monumental step of temporarily shutting down MAX production because of the crisis, which has pushed the aircraft's return to the skies into 2020.

Muilenburg will exit the company immediately but Calhoun, a former General Electric aviation executive, will not take the CEO post until January 13, 2020, while he exits existing commitments, Boeing said in a news release.

During that period, Chief Financial Officer Greg Smith will serve as interim CEO.

Muilenburg's response to the crisis has been increasingly criticized as the MAX grounding has dragged on far longer than initially expected as more disturbing details have dribbled out about the certification of the MAX.

He has also been seen as tone deaf and awkward towards families of the 346 people killed in the crashes.

After enduring two withering congressional hearings in the fall, Muilenburg's leadership came under further scrutiny this month when the Federal Aviation Administration called the company out for overly-optimistic timeframe for restoring the MAX that the agency said created the perception that Boeing was trying "to force FAA into taking quicker action."

Boeing shares jumped 3.4 percent to $339.13 in early trading on the news.

The company took another hit to its reputation over on Sunday when its Starliner spacecraft landed six days early after a failed mission to rendezvous with the International Space Station.

US aviation chief says Boeing 737 MAX won't be recertified until 2020

Yahoo – AFP, John BIERS, December 11, 2019

People hold up pictures of the victims of Boeing 737 MAX accidents as Federal
Aviation Administration Administrator(FAA) Stephen Dickson(R) testifies before
the House Committee on Transportation and Infrastructure on Capitol Hill (AFP
Photo/JIM WATSON)

New York (AFP) - The top US air transport regulator on Wednesday doused Boeing's hopes that its 737 MAX will return to the skies this year while lawmakers probed why the agency did not ground the plane after the first of two crashes.

In an interview just ahead of a congressional hearing on the crashes, Federal Aviation Administration chief Steve Dickson told CNBC the aircraft will not be cleared to fly before 2020.

The process for approving the MAX's return to the skies still has 10 or 11 milestones left to complete, including a certification flight and a public comment period on pilot training requirements, he said.

"If you just do the math, it's going to extend into 2020," he said.

The MAX has been grounded since March following the second of two crashes that killed a total of 346 people.

Boeing has been aiming to win regulatory approval this month, with flights projected to resume in January.

But Dickson said, "I've made it very clear Boeing's plan is not the FAA's plan."

"We're going to keep our heads down and support the team in getting this report done right."

A captured agency?

Many of the questions at the subsequent hearing in the House Transportation Committee focused on why the FAA did not move more aggressively after the first crash.

FAA administrator Stephen Dickson, shown here at a swearing-in in August, is 

expected to face tough questioning at a congressional hearing Wednesday 

(AFP Photo/WIN MCNAMEE)

Boeing and the FAA have been under intense scrutiny following the crashes for their response to issues with the aircraft, including the flight-handling system involved in both accidents, the Maneuvering Characteristics Augmentation System, or MCAS.

Rather than grounding the plane after the October 2018 Lion Air crash, the FAA determined that it would require Boeing to revise the MCAS flight handling system in a process overseen by the FAA.

The agency also issued guidelines to flight crews worldwide on how the respond to a problem with MCAS, an automated system that pilots were unable to control during the Lion Air crash.

At Wednesday's hearing, Representative Peter DeFazio, an Oregon Democrat leading a congressional probe, cited an internal FAA risk analysis that, without fixes to MCAS, the MAX could suffer as many as 15 such catastrophic accidents over its decades of expected use.

That is a much higher rate than other planes and aviation experts consider it unacceptable.

Dickson, who did not join the agency until this summer following the two crashes, said he did not know who saw the internal analysis but that the agency's decisions after the Lion Air crash were "data driven."

"We really didn't know what the causes were" of the Lion Air crash, Dickson said, adding that issues with aircraft maintenance and pilot performance were also factors besides the MCAS.

"Obviously the result is not satisfactory," Dickson said when pressed if the agency had made a mistake.

After crashes that killed 346 people, Boeing has been aiming to get its 737 MAX 

certified to return to the skies this month, but the FAA says that cannot happen 

until 2020 (AFP Photo/JUSTIN SULLIVAN)

"The decision did not achieve the result it was intended to achieve."

DeFazio said the FAA's response was "way less than not satisfactory... it was catastrophic."

DeFazio said it was not clear how widely the internal FAA risk analysis had been distributed in the agency and whether officials on a key air worthiness panel saw the document.

"We may have a captive regulatory problem in the field offices," DeFazio said, referring to FAA officials in Seattle who on key decisions deferred to Boeing during the MAX certification.

A Boeing spokesman said the company agreed with the FAA's response to the Lion Air crash.

"The actions that Boeing and the FAA took, including the issuance of the Operations Manual Bulletin and Airworthiness Directive and the timeline for implementing the MCAS enhancements, were fully consistent with the FAA's analysis and established process," the Boeing spokesman said.

Dickson said he was determined to improve the agency's operations to prevent future crashes.

He said the accidents showed problems with "fragmented and inadequate" communications at the agency that inhibited the agency's ability to comprehensively assess safety during certification.

The House Transportation Committee also will hear from Edward Pierson, a former senior manager at Boeing who told company brass he feared production problems put plane safety at risk.

Michael Collins, a former FAA safety engineer who has criticized the agency's move to delegate some decisions to Boeing, will also testify.

Shares of Boeing were down 0.6 percent in early afternoon trading at $345.75.