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Tag: boeing 737 max

  • Biden to announce a Boeing and Air India deal worth at least $34 billion | CNN Business

    Biden to announce a Boeing and Air India deal worth at least $34 billion | CNN Business

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    CNN
     — 

    Air India will purchase more than 200 planes from Boeing, a White House official says President Joe Biden will announce Tuesday. It’s the third biggest sale of all time for the aircraft manufacturer.

    The agreement will include 190 Boeing 737 MAXs, 20 Boeing 787s, and 10 Boeing 777Xs – a total of 220 firm orders valued at a list price of $34 billion, the official says. The purchase will also include customer options for an additional 50 Boeing 737 MAXs and 20 Boeing 787s, totaling 290 airplanes for a total of $45.9 billion at list price.

    In a statement, Biden said the sale would “support over one million American jobs across 44 states, and many will not require a four-year college degree.”

    “This announcement also reflects the strength of the U.S.-India economic partnership,” the president wrote. “Together with Prime Minister Modi, I look forward to deepening our partnership even further as we continue to confront shared global challenges — creating a more secure and prosperous future for all of our citizens.”

    Production will support three separate U.S.-based manufacturing lines, will result in $70 billion in total economic impact across the United States and support an estimated 1.47 million direct and indirect jobs, a White House official said Tuesday.

    India has been gaining some manufacturing business as Western tensions flare with China, including major companies that traditionally rely heavily on Chinese production. Apple is one such company, with Minister of Commerce and Industry Piyush Goyal saying the tech giant was already making between 5% and 7% of its products in India.

    India is set to overtake China this year to become the world’s most populous country. The country’s massive and cheap labor force, which includes workers with key technical skills, is a big draw for manufacturers. Asia’s third-largest economy also offers a growing domestic market. In 2023, as global recession fears persist, India is expected to remain the fastest growing major economy in the world.

    If it can sustain that momentum, India could become only the third country with GDP worth $10 trillion by 2035, according to the Centre for Economics and Business Research.

    Boeing’s

    (BA)     737 Max has been plagued with problems, but production and orders for the troubled aircraft has picked up, boosted by a massive order from United late last year. In June, Ethiopian Airlines took delivery of a 737 Max from Boeing for the first time since the March 2019 crash that killed all 157 people on board, and led to a 20-month grounding of the jet.

    The company has plenty of other troubles in China, the world’s largest aviation market. It has been on the verge of being virtually shut out of the region as trade tensions between the United States and China have basically halted Boeing sales in the country for the last four years. The company has not announced any sales to a Chinese passenger airline since November 2017, and the country banned the Boeing 737 Max for much longer than most countries. A Boeing 737 Max finally took off in China in January for the first time since 2019.

    Boeing has faced myriad problems in recent years, beyond the drop in demand for passenger planes that occurred during the pandemic. Delivery of the 787 Dreamliner widebody jets resumed last year after they were halted due to quality control issues.

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  • Boeing ordered to appear in court next week on fraud conspiracy charge | CNN Business

    Boeing ordered to appear in court next week on fraud conspiracy charge | CNN Business

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    CNN
     — 

    A federal judge has ordered Boeing to appear in federal court in Texas next week for an arraignment on a fraud charge involving the certification of the 737 MAX.

    Boeing and the US government in 2021 entered into a deferred prosecution agreement in this case without the participation of family members of the 737 MAX crash victims, who then argued to the court that they should have been allowed to participate in the case under a federal crime victim law. In October, the judge sided with them.

    In Thursday’s ruling, Judge Reed O’Connor said Boeing must appear for an arraignment and that the family members or their attorneys may speak at the proceeding.

    This legal process is separate from the civil action the victims’ family members filed against Boeing.

    The Clifford Law Office, representing the victims’ family members in the civil suit, said in a statement that it is “rare in US aviation law history that a corporation is arraigned on criminal charges regarding the deaths of plane crash victims.”

    In September, Boeing and its former CEO Dennis Muilenburg agreed to pay hefty fines to settle charges from the Securities and Exchange Commission that they misled the public about the safety of the 737 Max following two fatal crashes in 2018 and 2019.

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  • Boeing ordered to face arraignment on felony charge in 737 Max jet crashes

    Boeing ordered to face arraignment on felony charge in 737 Max jet crashes

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    $2.5B Boeing settlement can be challenged


    $2.5 billion settlement over Boeing 737 Max plane crashes can be challenged

    05:25

    A federal judge has ordered Boeing Co. to be arraigned on a felony charge stemming from crashes of two 737 Max jets, a ruling that threatens to unravel an agreement Boeing negotiated to avoid prosecution. The two crashes, which occurred in 2018 and 2019, killed 346 people.

    The ruling by a judge in Texas came after relatives of some of the victims said the government violated their rights by reaching a settlement with Boeing without first notifying the families.

    U.S. District Court Judge Reed O’Connor ordered Boeing to send a representative to his courtroom in Fort Worth Jan. 26 for arraignment.

    O’Connor ruled last year that relatives of those killed in the crashes are crime victims under federal law and should have been consulted before the Justice Department agreed to a deal under which Boeing paid $2.5 billion to avoid prosecution on a criminal count of defrauding federal regulators who approved the 737 Max.

    “We are pleased that the court has agreed with our request for an arraignment, and rejected arguments from Boeing and the U.S. Justice Department,” attorney Paul G. Cassell, who is representing families of some of the victims, said in a statement to CBS News Thursday.

    Most of the money from the settlement went to airlines that couldn’t use their Max jets for nearly two years after the planes were grounded worldwide. Boeing agreed to pay a $243.6 million fine and create a $500 million fund to compensate victims’ families.

    Last September, Boeing also paid $200 million to settle charges from the Securities and Exchange Commission over allegations it misled the public and investors by claiming the plane was safe despite knowing that a flight-control system posed a safety risk. 

    On Oct. 18, 2018, Lion Air Flight 610 crashed into the ocean off West Java, Indonesia, shortly after takeoff. All 189 people aboard died.

    About five months later, on March 10, 2019, Ethiopian Airlines Flight 302 crashed, also just after takeoff, near Addis Ababa, killing all 157 people aboard. 


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  • United places order for 200 Boeing planes, giving two troubled jets a vote of confidence | CNN Business

    United places order for 200 Boeing planes, giving two troubled jets a vote of confidence | CNN Business

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    New York
    CNN
     — 

    United Airlines placed a massive order for at least 200 Boeing planes on Tuesday, split between two models dogged by recent problems: the 737 Max and the 787 Dreamliner.

    It’s a crucial vote of confidence for Boeing, which took tens of billions of dollars in financial losses due to the problems with the two planes. The Federal Aviation Administration grounded the 737 Max for 20 months starting in March 2019, halting deliveries of the jets, after two fatal crashes that killed 346 people. The 787 was not grounded but the FAA halted deliveries for roughly a year due to quality control issues.

    Even beyond those problems, Boeing has been losing the competition with European rival Airbus on new orders, especially for single-aisle jets like the 737 Max. It has done better in competition for widebody plane orders, but has faced problems there as well, with delays for a new model of the 777, the 777X, and the halt in 787 deliveries.

    Later Tuesday Boeing reported that it had received orders for a total of 571 commercial planes through November of this year, net cancellations. So United’s order for 200 jets by itself represented 35% of the orders the aircraft maker had already reported for the year. But even adding those 200 jets doesn’t bring Boeing’s total near to the 825 plane orders that Airbus has booked, net its own cancellations.

    While neither United

    (UAL)     nor Boeing

    (BA)     would reveal pricing details, the list price of the jets total more than $37 billion. Even with the deep discounts typical of such purchases, the order will likely amount to tens of billions of dollars in sales Boeing

    (BA)     desperately needs.

    United said the firm orders for 100 twin-aisle 787 Dreamliners, along with an option to buy 100 more, will represent the largest widebody jet order on record by any US carrier.

    “The Boeing team is honored by United’s trust in our family of airplanes to connect people and transport cargo around the world for decades to come,” said Stan Deal, CEO of Boeing’s commercial aircraft division.

    Shares of Boeing rose 3% in premarket trading, following the announcement.

    The 787 is a plane used primarily on long-range overseas routes. The model’s purchase represents United’s belief that there is pent-up demand for international travel, which has not bounced back as quickly as US domestic passenger demand over the last year. Some countries — notably China — still have strict restrictions on flying into the country, and some passengers are concerned about foreign travel.

    But United will take delivery of the planes over the course of the next 10 years, during which time any restrictions and concerns may become distant memories. And the first 100 Dreamliners it receives will replace retiring older 757, 767 and 777 jets already in United’s fleet. Some of those older planes date back at least 30 years.

    United’s options for 100 additional Dreamliners represents the company’s plans to expand its fleet and its reach into international markets.

    The significant order makes United the “flag carrier of the United States and the leading airline of around the globe,” United CEO Scott Kirby said Tuesday in an interview with CNN’s Poppy Harlow on CNN This Morning.

    “This is just the next step in that path to replace some of our older 767s that are at the end of their life, but also to create growth opportunities for years to come in the international network for years to come,” Kirby said.

    He also didn’t express any hesitation about ordering two Boeing planes that had trouble in the past, saying a “few tough years made [Boeing] stronger” and noting that United has always had a “great partnership” with the aerospace company.

    The order, while an important lift for Boeing, isn’t a total surprise.

    Airlines have a financial interest in sticking with the same model plane once they commit to it. The companies are able to save on pilot training and spare parts costs by populating their fleets with the same models.

    Unlike a driver who can seamlessly move between car makers, commercial pilots are limited to flying only the model on which they are certified. While United has some orders with Airbus

    (EADSF)    , nearly 80% of its existing fleet is composed of Boeing jets.

    “We have a large installed base of 787s,” said Kirby when asked on a press call about potentially increasing purchases of a competing Airbus model. “The economics of bringing in another fleet type doesn’t make sense.”

    Boeing started taking orders for the Dreamliner in 2004, and United was one of its earliest US customers. It is made of a lighter-weight composite material than the aluminum used to build most commercial jets, giving it much better fuel economy and thus operational savings compared to the older planes it will replace in the United fleet. United has yet to decide how many of each of the three different models of the Dreamliner it will take.

    The 100 737 Max jets United is buying includes 44 planes for which it already had an option to purchase, and 56 new orders. In June 2021, it announced the purchase of 200 of the 737 Max jets, along with 70 competing planes from Airbus, in the largest aircraft order that United has ever placed.

    –CNN’s Jordan Valinsky contributed to this report.

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  • China Eastern takes delivery of the world’s first made-in-China C919 jet | CNN Business

    China Eastern takes delivery of the world’s first made-in-China C919 jet | CNN Business

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    The world’s first C919, a Chinese-made narrowbody jet, was delivered to launch customer China Eastern Airlines

    (CEA)     in Shanghai on Friday and took off for a 15-minute flight to mark the historic moment.

    The plane, a rival to the Airbus

    (EADSY)     A320neo and Boeing

    (BA)     737 MAX single-aisle jet families, is expected to make its maiden commercial flight next spring, according to state-owned Xinhua News Agency.

    It was certified for safe operations in September and mass production in November.

    The plane, delivered to China Eastern, has 164 seats and was painted with “the world’s first C919” on its side in Chinese and English. Its maiden route will be between Shanghai and the capital Beijing, industry sources have said.

    China Eastern said Friday it plans to receive the remaining four of its first batch of C919 orders over the next two years, according to Shanghai’s The Paper, a state-owned newspaper. That compares with earlier plans to get all four next year.

    The airline did not respond immediately to a request for comment.

    China’s narrowbody jet ambitions intensified over the last few years amid conflicts with the United States from trade to technology that made China increasingly concerned about being overly dependent on Airbus and Boeing.

    Commercial Aviation Corp of China (COMAC) is expected to produce around 25 C919s per year by 2030, far lower than the current monthly rates of narrowbody production at its rivals, according to Jefferies analysts.

    COMAC did not immediately respond to request for comment.

    The C919 currently relies heavily on Western components, including engines and flight control systems, from companies such as GE

    (GE)    , Safran

    (SAFRF)    , and Honeywell International

    (HON)    .

    China is trying to raise the proportion of domestic parts in the C919 and an alternative engine called the CJ-1000A is under development.

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