Boeing hiring hundreds of workers to maintain parked 737 Max planes

Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019. Boeing is hiring hundreds of temporary workers to help maintain its growing fleet of grounded 737 Max planes that are awaiting delivery. The company has posted job listings for a few hundred temporary workers who will help the company with 737 Max storage and maintenance at the Por


Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019. Boeing is hiring hundreds of temporary workers to help maintain its growing fleet of grounded 737 Max planes that are awaiting delivery. The company has posted job listings for a few hundred temporary workers who will help the company with 737 Max storage and maintenance at the Por
Boeing hiring hundreds of workers to maintain parked 737 Max planes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: phil lebeau, michael wayland
Keywords: news, cnbc, companies, moses, 737, max, washington, planes, maintain, lake, tulsa, parked, maintenance, company, boeing, hundreds, hiring, workers


Boeing hiring hundreds of workers to maintain parked 737 Max planes

Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019.

Boeing is hiring hundreds of temporary workers to help maintain its growing fleet of grounded 737 Max planes that are awaiting delivery.

The company has posted job listings for a few hundred temporary workers who will help the company with 737 Max storage and maintenance at the Port of Moses Lake east of Seattle. Boeing will not say exactly how many employees are being hired.

Boeing is seeking “avionics technicians, aircraft mechanics, airframe and Powerant (A&P) mechanics, and aircraft electricians,” according to a company spokesman.

Since aviation regulators across the world grounded the Max in March, Boeing has continued building the planes, but not delivering them. Many are parked near Boeing’s 737 plant in Renton, Washington, but dozens of other Max models have been flown to other locations where they are parked and receive daily maintenance. One of those locations of the Port of Moses Lake, an airfield next to the Grant County International Airport in Moses Lake, Washington.


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: phil lebeau, michael wayland
Keywords: news, cnbc, companies, moses, 737, max, washington, planes, maintain, lake, tulsa, parked, maintenance, company, boeing, hundreds, hiring, workers


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Southwest expands Hawaii flights with $99 fares as tourists flock to the islands

Southwest Airlines is expanding its footprint in Hawaii as the carrier grapples with the fallout from the grounded Boeing 737 by courting tourists with low fares from the West Coast. The airline also announced a one-day sale of $99 one-way flights for the routes to try to get travelers on board and said it would expand flying between the islands. The additional flights would increase Southwest’s daily flights between California and Hawaii from 12 to 18 and more than double its inter-island fligh


Southwest Airlines is expanding its footprint in Hawaii as the carrier grapples with the fallout from the grounded Boeing 737 by courting tourists with low fares from the West Coast. The airline also announced a one-day sale of $99 one-way flights for the routes to try to get travelers on board and said it would expand flying between the islands. The additional flights would increase Southwest’s daily flights between California and Hawaii from 12 to 18 and more than double its inter-island fligh
Southwest expands Hawaii flights with $99 fares as tourists flock to the islands Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: leslie josephs
Keywords: news, cnbc, companies, expands, hawaii, routes, southwests, 99, fares, increase, airlines, southwest, flights, islands, flying, tourists, max, plane, flock


Southwest expands Hawaii flights with $99 fares as tourists flock to the islands

Southwest Airlines is expanding its footprint in Hawaii as the carrier grapples with the fallout from the grounded Boeing 737 by courting tourists with low fares from the West Coast.

Starting in January 2020, Southwest will offer a daily flight between Sacramento and Honolulu and twice-weekly flights each from Oakland and San Jose, California, to Kona and Lihue between late January and early March.

The airline also announced a one-day sale of $99 one-way flights for the routes to try to get travelers on board and said it would expand flying between the islands.

Shares of Hawaiian Airlines’ parent were down more than 2% after Southwest’s announcement.

The additional flights would increase Southwest’s daily flights between California and Hawaii from 12 to 18 and more than double its inter-island flights to 34 a day.

Southwest debuted Hawaii service in March, shortly after an Ethiopian Airlines 737 Max crashed, grounding that type of plane worldwide. The biggest U.S. Max customer, Southwest has removed the plane from its schedules until the beginning of next year — canceling thousands of flights and rejiggering its routes as a result.

Last month, the Dallas-based airline said it would pull out of Newark Liberty International Airport, where flights were less profitable, and increase flying to Hawaii.

Southwest’s move comes as Hawaii has grown more popular with tourists.

Hawaii took in 5.1 million visitors by air in the first half of the year, a 4% increase from the first six months of 2018, according to state statistics.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: leslie josephs
Keywords: news, cnbc, companies, expands, hawaii, routes, southwests, 99, fares, increase, airlines, southwest, flights, islands, flying, tourists, max, plane, flock


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Wilbur Ross says the US economy will see a boost when the Boeing 737 Max grounding lifts

The U.S. economy will get a boost when Boeing’s troubled 737 Max jets return to flight, Commerce Secretary Wilbur Ross told CNBC on Wednesday. “Take for example the most recent quarter, Boeing’s problems with 737 Max probably took something like 0.4%” off gross domestic product, Ross said. “That will come back when the 737 Max problems are ultimately fixed.” The 737 Max fleet has been grounded across the globe since mid-March following two crashes over less than five months that killed 346 peopl


The U.S. economy will get a boost when Boeing’s troubled 737 Max jets return to flight, Commerce Secretary Wilbur Ross told CNBC on Wednesday. “Take for example the most recent quarter, Boeing’s problems with 737 Max probably took something like 0.4%” off gross domestic product, Ross said. “That will come back when the 737 Max problems are ultimately fixed.” The 737 Max fleet has been grounded across the globe since mid-March following two crashes over less than five months that killed 346 peopl
Wilbur Ross says the US economy will see a boost when the Boeing 737 Max grounding lifts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, boost, ross, lifts, month, growth, boeings, grounding, wilbur, max, software, boeing, economy, took, 737, secondquarter


Wilbur Ross says the US economy will see a boost when the Boeing 737 Max grounding lifts

The U.S. economy will get a boost when Boeing’s troubled 737 Max jets return to flight, Commerce Secretary Wilbur Ross told CNBC on Wednesday.

“Take for example the most recent quarter, Boeing’s problems with 737 Max probably took something like 0.4%” off gross domestic product, Ross said. “That will come back when the 737 Max problems are ultimately fixed.”

U.S. growth slowed in the second quarter, with GDP advancing 2.1% compared to the first-quarter’s 3.1% gain.

The 737 Max fleet has been grounded across the globe since mid-March following two crashes over less than five months that killed 346 people combined. Investigators blamed a software problem in the plane’s anti-stall automated flight system.

Last month, Boeing reported a $2.9 billion second-quarter loss, its worst quarterly loss ever, due to the Max problems.

Shortly after the grounding, analysts began to predict that Boeing’s troubles would harm overall U.S. economic growth. Wells Fargo in April projected a 0.2% reduction in second-quarter GDP. Last month, J.P. Morgan estimated the groundings and subsequent production cuts would trim second-quarter economic growth by about 0.1%.

The 737 Max grounding, now in its sixth month, has also hit suppliers. General Electric said last month its cash flow took a hit as a result. GE, which makes the Max engines through a joint venture, said it would continue to report losses as long as the model remained grounded.

Boeing, which has been testing software fixes, expects the Max jets to return to the skies by early in the fourth quarter.

Once that happens, Ross said, the U.S. economy will even out. “We think that the economy is strong, the economy is headed in a good direction,” he added, saying he believes the U.S. can work its way to 3% growth.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, boost, ross, lifts, month, growth, boeings, grounding, wilbur, max, software, boeing, economy, took, 737, secondquarter


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Labor tensions flare at American Airlines over hundreds of canceled flights

Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019. American Airlines has accused the unions representing its mechanics of a purposeful work slowdown to win leverage in contract talks, which it said caused more than 900 flight cancellations over the last two months. A U.S. federal court in Texas this week issued a permanent injuncti


Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019. American Airlines has accused the unions representing its mechanics of a purposeful work slowdown to win leverage in contract talks, which it said caused more than 900 flight cancellations over the last two months. A U.S. federal court in Texas this week issued a permanent injuncti
Labor tensions flare at American Airlines over hundreds of canceled flights Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: leslie josephs
Keywords: news, cnbc, companies, united, mechanics, american, hundreds, contract, labor, max, airlines, canceled, flights, work, flare, southwest, workers, tensions, unions


Labor tensions flare at American Airlines over hundreds of canceled flights

Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019.

American Airlines has accused the unions representing its mechanics of a purposeful work slowdown to win leverage in contract talks, which it said caused more than 900 flight cancellations over the last two months. Now the airline wants compensation from the unions.

A U.S. federal court in Texas this week issued a permanent injunction against the mechanics unions for the slowdown that American alleged in a suit this spring. A day later, Fort Worth-based American Airlines, said it would seek damages from the unions — the Transport Workers Union of America and the International Association of Machinists and Aerospace Workers — saying they violated earlier court orders to resume usual work levels.

The unions, which represent the airline’s more than 12,000 mechanics, have denied the allegations.

The unions have caused “enormous financial losses to American, and untold harm in lost customer good will,” American said in its filing Tuesday. It said the amount would be determined at a hearing.

The cancellations and more than 200 delays of over two hours are compounding operational challenges at American, which like Southwest and United, has canceled thousands of flights since its new Boeing 737 Max planes were grounded in mid-March after two fatal crashes.

American last month said the Max grounding, which is now in its six month, and the mechanics’ dispute drove up its nonfuel costs in the second quarter by 5% from a year earlier.

The airline’s stock has trailed its closest competitors this year, falling 18% on Wednesday to a three-year low. Delta is up close to 15%, Southwest has risen more than 3% and United is down close to 3%.

“It would make no sense to not comply” with the judge’s orders to work at a regular pace, said TWU President John Samuelsen, adding that by complying “we will achieve contract justice for American Airlines workers.”

Work groups across airlines are clamoring for higher wages and better working conditions as the industry, better known for boom-and-bust cycles, heads toward its 10th consecutive year of profits.

Earlier this year, Southwest had a similar dispute with its mechanics, but later reached a contract with the group, their first in more than six years, and a higher pay raise than Southwest offered in previous rounds of negotiations.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: leslie josephs
Keywords: news, cnbc, companies, united, mechanics, american, hundreds, contract, labor, max, airlines, canceled, flights, work, flare, southwest, workers, tensions, unions


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Why Boeing investors can look to Chipotle as a path through crisis and back to big stock returns

But Boeing’s climb stopped when tragedy struck, twice: Just several months apart, two Boeing 737 Max airplanes crashed, killing a total of 346 people. After the second crash, multiple federal investigations began examining the 737 Max – including probes by the FBI and both chambers of Congress. Shortly after the grounding, Boeing cut production of the 737 Max to 42 aircraft per month, a decrease of about 20%. Boeing shares have fallen nearly 25% since peaking on March 1 at $446.01 a share. Boein


But Boeing’s climb stopped when tragedy struck, twice: Just several months apart, two Boeing 737 Max airplanes crashed, killing a total of 346 people. After the second crash, multiple federal investigations began examining the 737 Max – including probes by the FBI and both chambers of Congress. Shortly after the grounding, Boeing cut production of the 737 Max to 42 aircraft per month, a decrease of about 20%. Boeing shares have fallen nearly 25% since peaking on March 1 at $446.01 a share. Boein
Why Boeing investors can look to Chipotle as a path through crisis and back to big stock returns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-11  Authors: michael sheetz
Keywords: news, cnbc, companies, epstein, chipotle, shares, hottovy, kahyaoglu, boeing, 737, look, crisis, returns, stock, investors, path, max, boeings, airplane, big


Why Boeing investors can look to Chipotle as a path through crisis and back to big stock returns

Patrick T. Fallon | Bloomberg | Getty Images; Lindsey Wasson | Reuters

Boeing investors face more questions than answers as its 737 Max crisis drags on, but the company could find a way forward by turning to an unlikely example: Chipotle Mexican Grill. Chipotle shares were on an incredible run from the company’s IPO to mid-2015, climbing more than 1,400%, but in July of that year an E. coli outbreak sickened hundreds of customers. Sales plunged and then came more E. coli outbreaks, plus norovirus and salmonella outbreaks, that further deteriorated public confidence. It took more than three years before Chipotle’s stock stopped falling — even after the company eventually quelled safety concerns. At the bottom, its shares lost about two-thirds of their value. Boeing is playing out a similar story. Over a decade, its shares rose more than 700%. It was one of the best-performing stocks in the Dow Jones Industrial Average. But Boeing’s climb stopped when tragedy struck, twice: Just several months apart, two Boeing 737 Max airplanes crashed, killing a total of 346 people. Federal regulators grounded the 737 Max – there were 387 in service around the world. Boeing slowed production of the jets and continues working with regulators to find a fix for the aircraft’s software, which has been implicated in the crashes. Its stock has lost about a quarter of its value since its most recent high. “Airplanes are not lettuce,” Bank of America analyst Ron Epstein told CNBC. Indeed, at a glance these two companies are vastly different, yet a comparison of their crises reveals noted similarities that should give Boeing investors a better sense of how long the recovery process may take. “From the point of view that lettuce is a core piece of what Chipotle does, the 737 is a core piece of what Boeing does – about a third of their cash flow,” Epstein said. Both crises show how perception of management’s competency, as well as rebuilding customer confidence, is key to a successful recovery. “It’s amazing that we’re talking about two very different companies and two very different situations, but I do think that at the root of it is this: If management comes across as complacent, it can have a more serious ripple effect than in any time in history,” Morningstar consumer analyst R.J. Hottovy told CNBC. “You can’t come across as if it’s no big deal because, in this day and age of social media, those are the type of things that come back to haunt you,” Hottovy said.

The Boeing crisis

Boeing reported its biggest quarterly loss in history last month, which was its first full three-month period since the 737 Max was grounded. The company’s chairman, president and CEO, Dennis Muilenburg, spoke on the company’s conference call with investors about strategies and alternatives, although he spent much of the time tempering expectations. Costs are piling up as Boeing took a nearly $5 billion charge in the second quarter to compensate airlines for disruptions caused by the grounded plane. Airlines have canceled thousands of flights already this summer, with Southwest Airlines warning passengers that disruptions may continue through the Thanksgiving and Christmas holidays. Ryanair CEO Michael O’Leary aired his frustration during a conference call with investors last week, saying new planes for the airline “could well move to zero if Boeing don’t get their s— together pretty quickly with the regulator. ” After the second crash, multiple federal investigations began examining the 737 Max – including probes by the FBI and both chambers of Congress. Investigators are especially looking at how regulators approved the 737 Max to fly as a software issue appears to be key in both crashes. Additionally, Boeing faces lawsuits from the families of crash victims. Shortly after the grounding, Boeing cut production of the 737 Max to 42 aircraft per month, a decrease of about 20%. While Boeing aims to get back on track and raise production next year, that is contingent upon the aircraft returning to service before the end of this year. If delays worsen, Boeing may either further cut or suspend production. Either move would damage Boeing’s suppliers, such as Spirit AeroSystems and General Electric, both of which are seeing profits squeezed by the slowing production. Boeing shares have fallen nearly 25% since peaking on March 1 at $446.01 a share. At about $340 a share, Boeing’s stock is currently near the same price it was 12 months ago. Boeing shares haven’t fallen to the degree that Chipotle did during its crisis, even though Boeing’s crashes were more severe. With its timeline for resuming flying the 737 Max this year in doubt, it’s unclear how patient shareholders will have to be. “It’s a timer on how quickly this aircraft gets off the ground. But there’s a lot that goes into it, so it’s a very sticky situation,” Jefferies analyst Sheila Kahyaoglu told CNBC. “Whether it’s November or January I don’t think will make much of a material difference.” So far, Boeing’s stock is treading water near the same price it was at this time last year. But the question Epstein asks is what many want answered: “Where is the stock when you get through this?” “Given the headlines, the stock’s been very resilient,” Epstein said.

Chipotle recovers from its crisis

It took about four years, and a new CEO, but Chipotle’s stock has come all the way back. The shares dropped nearly 67% from their high of $757.77 in August 2015 to the bottom, at $251.33 in February 2018. How did the company lose nearly two-thirds of its value? “Chipotle had built its brand on having fresh products. The way Chipotle handled the food scares, in a lot of ways, exacerbated the issue – management was complacent,” Hottovy said He believes Chipotle’s multiple food scares compounded issues with its operations. “Customers were willing to wait in the long line out the door because they knew the line would be fast, and the speed of service got slower, and a lot of that was the fact that they didn’t do a great job of training their employees,” Hottovy said. “It didn’t necessarily lead to the food safety issues, but it certainly didn’t help it either.” Shares began to turn around after Brian Niccol, former Taco Bell CEO, came on as Chipotle’s chief executive in March 2018. Founder Steve Ells resigned from the position but remains executive chairman. Chipotle is up 89% this year and hit a new 52-week high of $822.88 a share on Friday.

The similarities for Boeing shareholders

While there are obvious differences between the companies and the products at hand, analysts pointed to how the situations have multiple similarities. First and foremost, Epstein said, is the company’s reputation with consumers. “How long did it take for people to feel comfortable to go back into Chipotle and eat things? How long is it going to take consumers to feel comfortable to get back on a 737? That’s an open question,” Epstein said. Hottovy explains that, in the restaurant and fast-food business, a food scare typically has “a recovery period of about nine months.” Chipotle’s recovery took longer because “they had multiple incidents,” Hottovy said, which “showed that whatever solutions they had put into place just weren’t working.” “If you have repeated ones then that starts to become part of the brand,” Hottovy said. Kahyaoglu said that the 737 Max “won’t be a major factor in flight choices” after about “the first six months, or even three months.” She cautioned that this is only her own rough estimate, and not a direct result of a model or survey. Both companies had more than one incident but Boeing’s recovery time, in her view, will not be quite as drawn out due to the difference in consumer choices. Epstein, however, added that Boeing, like Chipotle, faces “an existential risk that wasn’t there” before: The potential damage to customer confidence from further accidents. “If there’s a third incident, for any reason – it could even not be the fault of the airplane – then that would put a big dent in the 737 franchise,” Epstein said. Another similarity between Boeing and Chipotle is that both companies had an issue with a key product. Epstein noted that Boeing is not going to “move out of the 737 business” and that what happened is fixable. But Epstein said even “the absolute worst possible case” for Boeing, where the airplane is endlessly grounded and “never comes back,” will not change the market demand for an airplane like the 737 Max. “They’ll replace it with a new airplane. It takes three or four years – maybe five years – they come out with a whole new product with all the bells and whistles of a new airplane, it costs them a lot of money, but then they’ll have another airplane in the market and they’ll be selling those,” Epstein said.

Important differences

Moving forward, Boeing’s management cannot be lackluster in its response and future communication about the 737 Max, Hottovy said. Chipotle “was an example of what not to do” during a crisis, Hottovy said, and management’s clarity “was severely lacking.” For both companies, Hottovy said that “transparency is a big part of this.” “One of the big reasons why Chipotle wasn’t able to fully recover is that, when you have a situation like this nowadays, you have to be fully transparent: You have to identify what happened, why it happened in the first place and what solutions are going to be there,” Hottovy said. “Chipotle was never able to concretely say that a bad batch of lettuce got into the system.” Kahyaoglu notes that Boeing has some opportunities to recover that Chipotle did not have. “Perhaps with some rebranding, the general public might not be able to distinguish the Max [compared to another Boeing aircraft], where as a consumer walks into a restaurant and makes a very conscious choice,” Kahyaoglu said. More broadly, the type of airplane a consumer is flying on rarely factors into their choice. But with Chipotle, the type of food is absolutely key. “It’s less complicated,” Epstein said. “You’re either going to get a burrito or you’re not going to get a burrito.” With flights, most customers choose times and destinations, not aircraft. “The consumer ultimately won’t need to make this decision and, once this aircraft is back and there are 100 safe flights, then no one will ever be talking about this again,” Kahyaoglu said. The market demand for the company’s product during the crisis is also different. Chipotle has already seen some sales declines when the food safety issues arose, Hottovy said. But at the time of Boeing’s crisis, the company was reporting record sales and a backlog of more than $400 billion worth of orders. Boeing also has a lot of inventory built up, Epstein noted, as the company has been parking 737 Max airplanes at facilities all around the country. Perhaps the most important difference is the management situation. Chipotle waited until after the worst of the crisis to change its CEO, but analysts don’t expect that Boeing’s board is likely to remove Muilenburg. There’s a simple reason for that: Airbus. “This a global duopoly with two manufacturers … there aren’t a wealth of people that Boeing could choose to put aside from their main competitor,” Kahyaoglu said. Epstein concurred. “Right now, for better or for worse, there are only two large manufacturers of commercial aircraft in the world.” “Who else could you possibly hire?” Kahyaoglu added. “That’s why I think Muilenburg’s knowledge of the situation is actually pretty important, given his operational experience and knowledge of Boeing.”

What’s ahead for Boeing?


Company: cnbc, Activity: cnbc, Date: 2019-08-11  Authors: michael sheetz
Keywords: news, cnbc, companies, epstein, chipotle, shares, hottovy, kahyaoglu, boeing, 737, look, crisis, returns, stock, investors, path, max, boeings, airplane, big


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Boeing conducts 500 test flights of troubled 737 Max jets in bid to restore trust following crashes

Boeing Chief Executive Dennis Muilenburg speaks during their annual shareholders meeting at the Field Museum on April 29, 2019 in Chicago, Illinois. Boeing CEO Dennis Muilenburg said Monday that the company has conducted almost 500 test flights with a new software update to its grounded 737 Max planes that he hopes will help win back the confidence of the flying public. He said the company has focused on updating software to make the Boeing 737 Max as safe as possible. The planes have been groun


Boeing Chief Executive Dennis Muilenburg speaks during their annual shareholders meeting at the Field Museum on April 29, 2019 in Chicago, Illinois. Boeing CEO Dennis Muilenburg said Monday that the company has conducted almost 500 test flights with a new software update to its grounded 737 Max planes that he hopes will help win back the confidence of the flying public. He said the company has focused on updating software to make the Boeing 737 Max as safe as possible. The planes have been groun
Boeing conducts 500 test flights of troubled 737 Max jets in bid to restore trust following crashes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: jasmine wu
Keywords: news, cnbc, companies, 737, boeing, trust, company, flights, crashes, restore, max, software, troubled, following, test, conducts, muilenburg, planes, jets, months


Boeing conducts 500 test flights of troubled 737 Max jets in bid to restore trust following crashes

Boeing Chief Executive Dennis Muilenburg speaks during their annual shareholders meeting at the Field Museum on April 29, 2019 in Chicago, Illinois.

Boeing CEO Dennis Muilenburg said Monday that the company has conducted almost 500 test flights with a new software update to its grounded 737 Max planes that he hopes will help win back the confidence of the flying public.

“We know that trust has been damaged over the last few months, and we own that and we are working hard to re-earn that trust going forward,” Muilenburg said in an interview at the Global Business Travel Association conference in Chicago. He said the company has focused on updating software to make the Boeing 737 Max as safe as possible.

The planes have been grounded worldwide since mid-March after two crashes within five months of one another claimed 346 lives.

Muilenburg said that he has personally flown on two of the test flights, and that Boeing employees are “eager to do the same.”

Boeing announced in July that the company will take a $4.9 billion charge in the second quarter due to the jetliner’s grounding. The company reported its worst ever quarterly loss of $2.9 billion later that month.

Muilenburg also reiterated the company’s plan to submit a certification package to the Federal Aviation Administration in September, and that he expects the 737 Maxes to return service early in the fourth quarter.

Boeing shares fell to 2.5% to close at a nearly seven-month low of $331.06 on Monday in a broad market swoon.


Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: jasmine wu
Keywords: news, cnbc, companies, 737, boeing, trust, company, flights, crashes, restore, max, software, troubled, following, test, conducts, muilenburg, planes, jets, months


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American tries to woo business travelers with better seats and faster airport screening

American Airlines is courting international business travelers with priority treatment on the ground as the airline aims to bring in more revenue from the lucrative passengers. These passengers traveling under corporate contracts will also be prioritized during disruptions such as weather or other operational problems. American rolled out those perks in April for corporate travelers booked on American flights. The airline is also planning to allow corporate travelers to book a preferred seat on


American Airlines is courting international business travelers with priority treatment on the ground as the airline aims to bring in more revenue from the lucrative passengers. These passengers traveling under corporate contracts will also be prioritized during disruptions such as weather or other operational problems. American rolled out those perks in April for corporate travelers booked on American flights. The airline is also planning to allow corporate travelers to book a preferred seat on
American tries to woo business travelers with better seats and faster airport screening Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: leslie josephs
Keywords: news, cnbc, companies, woo, airport, travelers, business, corporate, passengers, american, seats, perks, max, screening, airlines, preferred, priority, faster, revenue, tries, better


American tries to woo business travelers with better seats and faster airport screening

American Airlines is courting international business travelers with priority treatment on the ground as the airline aims to bring in more revenue from the lucrative passengers.

American is extending perks like free access to preferred seats, those toward the front of the coach cabin that generally carry a fee, and priority access for airport security lines, ticket counters and boarding for passengers booked through American on its trans-Atlantic partner airlines British Airways, Finnair and Spain’s Iberia.

These passengers traveling under corporate contracts will also be prioritized during disruptions such as weather or other operational problems. American has been grappling with a host of cancellations this summer from storms, the worldwide grounding of the Boeing 737 Max and what it has called an “illegal work slowdown” by the unions representing its mechanics.

American rolled out those perks in April for corporate travelers booked on American flights. The airline is also planning to allow corporate travelers to book a preferred seat on its website and app.

The moves are part of a battle between carriers for important corporate customers, who are generally willing to pay more to book close to the date of travel. American lost some market share to competitors after the Max was grounded in mid-March but bounced back in the middle of the second quarter, the airline’s head of revenue management, Don Casey, said on an earnings call last month.

Since regulators grounded the Max planes after a crash in Indonesia in October and another in Ethiopia in March, airlines have been trying to find ways to protect high-paying corporate travelers’ trips by consolidating flights on key business routes.

“On a year-over-year basis, there hasn’t been a very material change in the completion factor for corporate customers,” Casey said American’s call in July. “So, we’ve done a good job of figuring out … what to cancel.”

WATCH: The U.S. hasn’t had a fatal commercial plane crash in 10 years. Here’s why


Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: leslie josephs
Keywords: news, cnbc, companies, woo, airport, travelers, business, corporate, passengers, american, seats, perks, max, screening, airlines, preferred, priority, faster, revenue, tries, better


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Boeing to change 737 Max flight-control software to address flaw: Sources

Boeing plans further changes to the software architecture of the 737 MAX flight-control system to address a flaw discovered after a test in June, two people briefed on the matter said late on Thursday. The redesign, first reported by the Seattle Times, involves using and receiving input from both flight control computers rather than one. The move comes in response to an effort to address a problem discovered in June during a Federal Aviation Administration (FAA) simulator test.


Boeing plans further changes to the software architecture of the 737 MAX flight-control system to address a flaw discovered after a test in June, two people briefed on the matter said late on Thursday. The redesign, first reported by the Seattle Times, involves using and receiving input from both flight control computers rather than one. The move comes in response to an effort to address a problem discovered in June during a Federal Aviation Administration (FAA) simulator test.
Boeing to change 737 Max flight-control software to address flaw: Sources Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-02
Keywords: news, cnbc, companies, sources, test, flightcontrol, max, discovered, simulator, address, thursdaythe, 737, change, using, times, system, flaw, seattle, software, boeing


Boeing to change 737 Max flight-control software to address flaw: Sources

Boeing plans further changes to the software architecture of the 737 MAX flight-control system to address a flaw discovered after a test in June, two people briefed on the matter said late on Thursday.

The redesign, first reported by the Seattle Times, involves using and receiving input from both flight control computers rather than one.

The move comes in response to an effort to address a problem discovered in June during a Federal Aviation Administration (FAA) simulator test.


Company: cnbc, Activity: cnbc, Date: 2019-08-02
Keywords: news, cnbc, companies, sources, test, flightcontrol, max, discovered, simulator, address, thursdaythe, 737, change, using, times, system, flaw, seattle, software, boeing


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How a coffee shop business turned into Australia’s fastest-growing $1 billion start-up

Airwallex’s cofounders, from left to right, Xijing Dai, Lucy Liu, Jack Zhang and Max Li. When Jack Zhang and Max Li were looking for a side-hustle to supplement their day jobs, they did like good Melbournites and opened a coffee shop. However, it did brew an idea which would go on to become the fastest-growing $1 billion start-up in Australia’s history. Zhang and Li are co-founders of Airwallex, an international payments platform which in three short years has achieved the much-coveted unicorn s


Airwallex’s cofounders, from left to right, Xijing Dai, Lucy Liu, Jack Zhang and Max Li. When Jack Zhang and Max Li were looking for a side-hustle to supplement their day jobs, they did like good Melbournites and opened a coffee shop. However, it did brew an idea which would go on to become the fastest-growing $1 billion start-up in Australia’s history. Zhang and Li are co-founders of Airwallex, an international payments platform which in three short years has achieved the much-coveted unicorn s
How a coffee shop business turned into Australia’s fastest-growing $1 billion start-up Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-30  Authors: karen gilchrist
Keywords: news, cnbc, companies, liu, jack, zhang, shop, fastestgrowing, coffee, business, turned, idea, billion, max, li, australias, lucy, xijing, startup, dai


How a coffee shop business turned into Australia's fastest-growing $1 billion start-up

Airwallex’s cofounders, from left to right, Xijing Dai, Lucy Liu, Jack Zhang and Max Li.

When Jack Zhang and Max Li were looking for a side-hustle to supplement their day jobs, they did like good Melbournites and opened a coffee shop.

It seemed like an easy choice for two Chinese natives keen to assimilate into one of the coffee capitals of the world.

Easy it was not. However, it did brew an idea which would go on to become the fastest-growing $1 billion start-up in Australia’s history.

Zhang and Li are co-founders of Airwallex, an international payments platform which in three short years has achieved the much-coveted unicorn status.

The idea for the low-cost, cross-border fintech company — think Transferwise for businesses — hit the pair after seeing the exorbitant fees charged by traditional banks when they wanted to import coffee cups from overseas.

So, they teamed up with college friends Lucy Liu, Xijing Dai and Ki-Lok Wong to come up with a solution.


Company: cnbc, Activity: cnbc, Date: 2019-07-30  Authors: karen gilchrist
Keywords: news, cnbc, companies, liu, jack, zhang, shop, fastestgrowing, coffee, business, turned, idea, billion, max, li, australias, lucy, xijing, startup, dai


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Boeing better get its ‘s— together,’ Ryanair CEO warns as 737 Max grounding drags on

Boeing halted deliveries of the jets in March after two deadly 737 Max crashes within five months of one another. Ryanair CEO Michael O’Leary warned on Monday that the prolonged grounding of the Boeing 737 Max could lead to job cuts and slash the low-cost airline’s growth prospects next year. Southwest Airlines, which operates an all-Boeing 737 fleet, said last week it plans to take its new, but still-grounded Max planes out of its schedule until early January. O’Leary’s comments highlight growi


Boeing halted deliveries of the jets in March after two deadly 737 Max crashes within five months of one another. Ryanair CEO Michael O’Leary warned on Monday that the prolonged grounding of the Boeing 737 Max could lead to job cuts and slash the low-cost airline’s growth prospects next year. Southwest Airlines, which operates an all-Boeing 737 fleet, said last week it plans to take its new, but still-grounded Max planes out of its schedule until early January. O’Leary’s comments highlight growi
Boeing better get its ‘s— together,’ Ryanair CEO warns as 737 Max grounding drags on Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-29  Authors: leslie josephs
Keywords: news, cnbc, companies, planes, week, warns, oleary, max, 737, flying, drags, better, airlines, grounding, warned, ceo, boeing, ryanair


Boeing better get its 's--- together,' Ryanair CEO warns as 737 Max grounding drags on

“It may well move to 20, it could move to 10, and it could well move to zero if Boeing don’t get their s— together pretty quickly with the regulator,” O’Leary said.

Ryanair executives expected 58 of the planes for the summer of 2020, O’Leary said on an earnings call.

Boeing halted deliveries of the jets in March after two deadly 737 Max crashes within five months of one another. That has meant airlines like European budget carrier Ryanair, cannot grow their operations as planned. Regulators have not said when they will allow the planes to fly again.

Ryanair CEO Michael O’Leary warned on Monday that the prolonged grounding of the Boeing 737 Max could lead to job cuts and slash the low-cost airline’s growth prospects next year.

Regulators ordered airlines to stop flying the planes, Boeing’s bestseller, following an Ethiopian Airlines Max crash on March 10, less than five months after a Lion Air Max went down in Indonesia shortly after takeoff. Together the two crashes killed all 346 people on board.

Investigators in both crashes implicated flight-control software Boeing added to the planes, an upgraded version of its workhorse jet that’s been flying since the 1960s. Boeing told investors last week it is testing the software and expects to submit the fixes to the Federal Aviation Administration for approval in September.

O’Leary, however, said Boeing would submit its return-to-service changes in October. Boeing spokesman Charles Bickers said that “there has been no change to our expectations since last week.”

Airlines around the world that ordered the 737 Max, eager to expand flying with the fuel-efficient jetliners, have canceled thousands of flights during peak vacation travel season and are grappling with lost revenue since they were grounded in mid-March.

“Safety is our first priority. We regret the impact that the grounding is having on our customers as we work with the regulatory authorities to safely return the Max to service,” Boeing spokesman Bickers said.

Ryanair isn’t the only airline concerned about the effects grounding, now in its fifth month, spilling into next year. Southwest Airlines, which operates an all-Boeing 737 fleet, said last week it plans to take its new, but still-grounded Max planes out of its schedule until early January. American Airlines warned investors last week that it expects the grounding will cost it $400 million in pretax earnings this year, $50 million more than it forecast in April.

O’Leary’s comments highlight growing frustration among carriers left without their new planes, even as Boeing tries Boeing tries to quantify compensation for airlines and leasing firms.

Boeing posted its biggest loss in its history in the second quarter because of the grounding. It took a $4.9 billion charge in the second quarter for compensation it plans to pay to 737 Max customers. It said its production costs rose by $1.7 billion, and warned that costs could climb if the grounding goes on longer.

The manufacturer, which has sold more than 4,000 of the planes, said it could suspend already-reduced production altogether if the return to service is later than early in the fourth quarter.

Boeing’s charges don’t include what it may have to pay as a result of dozens of lawsuits. The company, along with the FAA, is also facing numerous investigations over how the plane was certified two years ago. The regulator has faced criticism from lawmakers over the close ties between Boeing and the agency and Boeing employees’ participation — a long-standing practice — in the certification process.

FAA officials on Wednesday morning are scheduled to face questions from a Senate transportation panel about oversight of the agency.


Company: cnbc, Activity: cnbc, Date: 2019-07-29  Authors: leslie josephs
Keywords: news, cnbc, companies, planes, week, warns, oleary, max, 737, flying, drags, better, airlines, grounding, warned, ceo, boeing, ryanair


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